Increasing smallholders market participation is acknowledged as an important step towards greater rural prosperity in developing countries. While existing literature identifies high transaction costs and market imperfections as challenges faced by smallholders in accessing agricultural markets, less attention has been paid to the role of constraints to the production of a marketable surplus. Specifically, there is a dearth of empirical evidence about how liquidity constraints during the production period that limit smallholders' investments in agricultural inputs can affect agricultural production and subsequently their market participation and choice of marketing channel. We explore this issue in the context of the Zambian maize market during a period when the country's parastatal marketing board - the Food Reserve Agency (FRA) - operated alongside private buyers and purchased large volumes of maize at a pan-territorial price that exceeded average market prices. Although we cannot definitively identify causal effects, we find strong and robust associations indicating that smallholder maize-growing households who were liquidity-constrained during the production period harvested less maize, were less likely to sell maize, and were less likely to sell to the FRA, as compared to those who were unconstrained. Liquidity constraints during the production period likely exacerbate the already disproportionate capture of FRA benefits by wealthier farmers.

This Viewpoint article synthesizes seminal research from multiple disciplines in a virtual special collection (VSC) of Elsevier articles to highlight critical remaining steps to achieve a sustainable Green Revolution (SGR) in Africa. It is now widely recognized that the combined use of improved seeds and inorganic fertilizers - which were critical to the Asian Green Revolution - are necessary but insufficient conditions for African farmers to sustainably raise the productivity of their cereal crops. We highlight three key conclusions emerging from the VSC. First, achieving a maize SGR in sub-Saharan Africa (SSA) will require the development of site-specific soil management practices that can be consistently applied by highly resource-constrained farmers. This condition is far from being achieved in most of SSA. Second, the challenges to achieving a rice SGR are different: Best management practices are largely established and effective. Rice yields have already increased dramatically in parts of SSA where Asian-style seed-fertilizer technology and cultivation practices have been adopted. Therefore, the priority for enhancing rice productivity in SSA is to promote wider adoption of these established practices in rice-producing areas. Third, overcoming these challenges for both maize and rice requires strong adaptive agricultural research, development, and extension organizations on the ground. Many African countries currently lack these organizations to carry out the core activities required to achieve a SGR; therefore, building institutional capacity for national and regional agricultural research, extension, and policy analysis is a fundamental component of an effective SGR strategy.

Land expansion by existing smallholder farmers (SHFs), aka stepping-up, is a major pathway to the rise of medium-scale farmers (MSFs) in Africa. In this paper, we investigate if and how armed conflicts constrain the ability of SHFs to transition to MSFs. We find that increased conflict intensity reduces the likelihood that a SHF will expand to a larger scale, especially for farmers who rely mostly on farm incomes, rather than off-farm incomes, for their livelihoods. These findings uphold other evidence that peace and stability influence private investment, including land-based investments, that are associated with economic transformation.

This study explores the effectiveness of international efforts to build the capacities of national agricultural research and extension systems (NARES) in Africa and proposes actions to improve the performance of these systems. Analysis draws on agricultural research expenditure data in Africa, Asia and Latin America and key informant interviews of 26 senior representatives of international and African research organisations. We conclude that donors and international partners have increased the supply of professional African scientists while contributing relatively little to the institutional capacities of African NARES. We propose a transition to what we call a twenty-first century African-led agricultural research system and identify actions to manifest it.

Key findings are summarized from a study detailing how international donors and research organizations can more effectively strengthen the capacities of African national agricultural research and extension systems (NARES). International efforts are more successful in building the capacities of individuals than in strengthening the NARES institutions. Successful implementation of the Africa Fertilizer and Soil Health Summit and similar initiatives will require stronger national, regional and continental agricultural research systems that can lead and drive these initiatives. The authors identify actions required to strengthen these African systems and effectively implement African-led agricultural initiatives.

Maize is the primary economic and dietary staple crop for most poor farmers in Southern Africa, yet low yields have persisted in the region for decades. Intensifying maize production in a sustainable way using the same land will be increasingly important as virgin land becomes scarcer and fallowing becomes less common. This study investigates the sustainability of intensification underway in the African smallholder sector using a uniquely detailed panel survey that combines remote sensing data, soil analysis, yield cuts, GPS area measurements, and detailed field management surveys. Specifically, we quantify the on-farm yield response to nitrogen (N) fertilizer in relationship to 16 soil and field management regimes, adding to the scant literature that combines precise and objective measures of inputs, outputs, and ecological conditions on fields managed by farmers. Furthermore, we examine drivers of soil health using a measure of labile carbon that, unlike total carbon, can be responsive to farm management over the observable time period. Results are based on a representative sampling of Malawi's diverse agroecosystems through a multi-year study for over 1000 fields. We find surprisingly low yield response to N applications, highlighting that fertilizer access alone is not sufficient for sustainable intensification. We find complimentary "good agronomy", including effective weed management, crop rotations, and organic fertilizer applications are positive influences on maize yield response to inorganic fertilizers. Encouragingly, results show management practices such as incorporating diverse crop residues and manure for a few years can raise labile carbon levels, improving the soil base on which factors jointly determine yields. These findings underscore the importance of education, livestock and crop diversification, and farmer utilization of good agronomy to improve fertilizer use efficiency as a means to promote sustainable agricultural productivity.

We use a unique dataset from Malawi that matches tenants and their landlord counterparts to document the role played by absentee tenants, i.e. tenants who reside outside the area where the rented land is located. We found that non-local tenants made up 22% of the tenants in our sample. A significant subset of them had higher off-farm income and significantly more assets than did other tenants. Conversely, we found that 76% of landlords rented land because they needed cash. Our results highlight the fact that some rental transactions reinforce power imbalances and may exacerbate risks faced by poorer landlords.

We review the literature on the distribution of farm sizes in sub-Saharan Africa, trends over time, drivers of change in farm structure, and effects on agricultural transformation and present new evidence for seven countries. While it is widely viewed that African agriculture is dominated by small-scale farms, we show that medium-scale farms of 5 to 100 hectares are a nontrivial-and rapidly expanding-force that is influencing the nature and pace of food systems transformation in Africa. The increased prevalence of medium-scale holdings is associated with farm labor productivity growth and underappreciated benefits to smallholder farmers. However, the rise of African investor farmers is also contributing to the commodification of land, escalating land prices, and restricted land access for most local people. A better understanding of these trends and linkages, which requires new data collection activities, could help resolve long-standing policy debates and support strategies that accelerate agricultural transformation.

In Africa, achieving sustainable agricultural intensification-increasing agricultural output without deleterious environmental impacts or converting more land for cultivation-will depend greatly on the actions of smallholder farmers and the policies that influence them. Whatever the future holds, the vast majority of farmers right now are small. Using multiple lines of evidence across disciplines, we examine trends in productivity of land and fertilizers in Malawi. Unfortunately, our effort uncovers disturbing trends that indicate intensification and sustainability are at risk. Two time-series datasets of satellite-based vegetative indices show a generally flat but highly variable trend in the productivity of agricultural land with epochs of steep decline. This is notably despite substantial (and successful) government effort to promote fertilizer use. We also compile evidence from several studies over three decades that use field-level data from farmers and suggest substantial declining maize yield response to fertilizer over time. These trends are consistent with soil degradation, the disappearance of fallow land and minimal investment in rehabilitation practices in densely populated areas, putting agricultural productivity in jeopardy. These signs of the harmful impacts that narrow approaches to productivity improvement may be having in Malawi are an early warning sign to policy makers in Malawi and around the continent that a more holistic and nuanced strategy is necessary for sustainable intensification in agriculture.

The finding that smaller farms are more productive than larger farms has long been documented. At present, evidence in the Sub-Saharan African (SSA) region has been largely limited to data from farms operating 5ha and below. Examining changes in farm size distributions and their relationship with agricultural productivity is important not only for agricultural economists and development researchers but also for evidence-based policymaking which goes beyond the current smallholder-led strategies for development in the region. This study examined the dynamics of farm operations between small-scale farms (SSFs) and medium-scale farms (MSFs) over time in different farm size categories and their relationship with agricultural productivity using farming household data spanning 0–40ha in Nigeria.

Decision-making is central to farm management. This study assesses key factors influencing land allocation decisions of households with respects to tree crop cultivation in Nigeria. The study uses primary data collected electronically from a sample of 569 small and 495 medium-scale farmers in Ogun State.Tobit and Heckman regression models were estimated. The study finds that, farm households who have access to land markets and land tenure security, all-weather roads, agro-dealer services and better transportation services are more likely to cultivate tree crop fields and allocate a higher share of total farm holdings to tree crop enterprises. Farm households with more educated heads put larger area of land under commercial tree crop cultivation and those with larger off-farm income tend to cultivate less hectarage to tree crops. The share of farmland allocated to tree crops by male headed households is higher than the share by the female headed households. In addition, female and youth-headed households were found to be less likely to invest in commercial tree crop farming. Policies and intervention programs that would enhance access to land, agro-dealer services, all-weather roads, transportation services and security of land tenure could facilitate the redistribution of land in favour of commercial tree crops.

Recent evidence suggests that the changing structure of land ownership in sub-Saharan Africa is one of the major new trends affecting African agri-food systems. Research in several African countries shows a rapid rise of medium-scale farms (MSFs) of 5–50ha. MSFs have become an important force for increasing agricultural production, particularly in countries with significant unutilised arable land and potential for area expansion, such as Ghana, Nigeria, Tanzania and Zambia. Most African countries’ national agricultural investment plans and policy strategies officially regard the smallholder farming sector as the main vehicle for achieving agricultural growth, food security, and poverty reduction objectives. However, many governments have adopted land and financial policies that implicitly encourage the rise of emergent MSFs. Given the documented rise in MSFs in many African countries, the APRA Nigeria Work Stream 1 team developed a research agenda focused on understanding the potentially complex ways in which these farms affect the productivity and commercialisation potential of small-scale farms (SSFs). We investigated the characteristics of MSFs, the processes that produces them, their relative importance in the agricultural commercialisation process, the relationship between farm scale and productivity, and whether MSFs influence the behaviour and welfare of the millions of SSF households around them. Our findings are based on two years of survey data on MSFs and nearby SSFs in 2019 and 2021 in Ogun and Kaduna states. This policy brief summarises our main findings, drawing upon several APRA-supported reports.

Research in several African countries shows the rapid rise of a medium-scale farming (MSF) sector. While national development policy strategies within the region officially regard the smallholder farming sector as an important (if not the main) vehicle for achieving agricultural growth, food security, and poverty reduction objectives, the meteoric rise of emergent farmers warrants their inclusion in efforts to understand the changing nature of farm structure and food value chains in Africa. The main objective of this working paper is to examine MSF1 as a potential pathway toward increased agricultural commercialisation.

Many countries across Africa are seeing an increasing share of farmland being classified as medium-scale farms (MSFs). MSFs are defined as farms operating between 5–100ha. MSFs co-exist with small-scale farms (SSFs, defined as farms below 5ha), who still constitute the majority of households in rural areas of Africa. While there is growing literature documenting the drivers of the rise of MSFs and their characteristics empirical evidence on how this rise in MSFs impacts neighbouring SSFs is still thin. This study addresses these observed gaps in the literature. We developed a theoretical model to explain some mechanisms through which spillovers on SSFs can be generated from the existence of MSFs around them. We empirically tested for evidence of these spillovers with data from Nigeria, Africa’s largest economy and most populous nation. By exploring the spillover effects of MSFs on a broader set of SSF outcomes, including input use, productivity, commercialisation and welfare (captured via several measures of household income and poverty status), this paper provides a more comprehensive view of spillover effects.

In spite of mounting evidence about the growth of medium-scale farms (MSFs) across Africa, there is limited empirical evidence on their impact on neighbouring small-scale farms (SSFs). We examine the relationships between MSFs and SSFs, with particular focus on the specific mechanisms driving potential spillover effects. First, we develop a theoretical model explaining two propagating mechanisms: learning effects (training) and cost effects (reduced transactions cost). An empirical application to data from Nigeria shows that SSFs with training from MSFs tend to use higher levels of modern inputs (have higher productivity), and receive higher prices and income. The results also show that purchasing inputs from MSFs reduces the costs of accessing modern inputs and is associated with higher inorganic fertiliser use by SSFs. Our results suggest that the benefits of receiving training and purchasing inputs from MSFs are particularly important for very small-scale producers, operating less than 1 hectare of land. This implies that policies which promote the efficient operation of MSFs and encourage their interaction with SSFs can be an effective mechanism for improving the productivity and welfare of smallholder farms, hence reducing their vulnerability to extreme poverty.

The region must pivot from area expansion to increasing crop yields on existing farmland

Conservation Agriculture (CA) aims to concurrently promote agricultural productivity, local livelihoods, climate resilience and other environmental objectives. We review the emerging evidence base in Eastern and Southern Africa to address whether CA is climate smart and why adoption rates by smallholders remain generally very low. We first develop an adoption framework that can be used to assess when and where the different components of CA are expected to be adopted under different conditioning factors and consider options to make CA climate smart. Our results suggest that CA can contribute positively to productivity and adaptation/resilience objectives, although the degree of success varies considerably by farm, household and regional characteristics. Overall, we find that capital-intensive (mechanized) CA is more likely to be adopted in areas of economic dynamism where capital is cheap relative to labor. Labor-intensive CA practices are more likely to be adopted in regions of economic stagnation where capital is expensive, and labor is abundant and cheap. A subnational focus is needed to identify economic conditions of different regions and agro-ecological zones and to test hypotheses derived from the framework in this paper and to propose the most appropriate CA packages for promotion. Our findings suggest that labor using variants of CA such as planting basins are more likely to be adopted than are capital using mechanized options in densely populated parts of Malawi, Ethiopia, Kenya, Tanzania, Zambia and Zimbabwe where labor is abundant, and presumably cheap, but capital is expensive. However, rising land scarcity (prices) and wages in the region present an opportunity for capital intensive, mechanized CA operations to be adopted if the cost of capital can be kept low and if there is a supportive environment for mechanization. We conclude that CA is climate smart and if adopted widely, it has the potential to help build resilience in smallholder farming systems. CA can be more climate smart, and its uptake can be enhanced by reframing, better targeting, adapting CA to location-specific economic and biophysical, and through greater and more effective public spending on agricultural research and development.

INTRODUCTION:Diversification away from tobacco production has been identified as a priority for Malawi, historically one of the world's most tobacco-reliant countries.METHODS:This paper refers to a nationally representative data set to characterize broad trends in production since 2000 to understand whether Malawi is shifting away from tobacco and how production has changed over time.RESULTS:From 2004 to 2019, the share of Malawian crop farmers producing tobacco fell from 16% to 5%, and tobacco's share of the total value of crop production also declined sharply. Tobacco farms are generally growing larger (in size and scale of production) over time. However, land productivity remains low, with net returns of 93 000 MWK (128 USD) per hectare at the median. Farm-gate prices for tobacco have declined relative to the prices of maize or fertilizer, rendering tobacco a less lucrative avenue to generate the cash income needed to purchase these key items. In addition, the share of the export price received by farmers has also declined over time, with the median farm-gate price representing 32% of the export price in 2004 and 18% in 2019.CONCLUSIONS:In some respects, a transition away from tobacco has already occurred. Additional research is needed to understand why the farm-gate share of tobacco export prices has declined over this period and how the livelihoods of smallholder farm-households that exited tobacco production have been affected.IMPLICATIONS:To the extent that tobacco prices appear to be declining, there is a need to rigorously assess whether farmers have suitable crop alternatives (with established markets) and other livelihood options. Likely, investments are yet needed to foster strong alternatives to tobacco; such investments include research and development in on-farm technologies to raise the productivity of non-tobacco crops, as well as improvements in non-tobacco value chains to reduce transportation costs and promote private investment.

The dichotomous view of formalization – ‘registered’ versus ‘not registered’ – is a widely adopted approach for analyzing entrepreneurs and their businesses. It, however, fails to adequately capture the multiple dimensions of the formalization process and limits the scope of interventions to promote business formalization. Hence, this study expands the conceptualization of agribusinesses’ formalization from a dichotomic view to a richer and more dynamic perspective. Using data from a survey of 819 agribusinesses in Benin, we develop a framework that considers multiple dimensions of formalization, namely registration status, compliance with tax law, and compliance with labor law and examine factors that influence the position of entrepreneurs on the formalization continuum. The result shows that agricultural entrepreneurs operate at varying degrees of formalization. Among the surveyed businesses, we found that about 46% were wholly informal, 6% were largely informal, 22% were only registered, 24% were largely formal, and 3% were wholly formal. Entrepreneurs who displayed higher levels of formalization were largely based in urban areas and older, with higher incomes and educational levels. They were also associated with greater awareness of the formalization procedures, had higher tax morality, and perceive a high risk of detection. The result underscores the need to rethink the dichotomous view of formalization and offers insights for targeting policy efforts to increase formalization in agribusinesses.