Owino Research Proposal Slides

FACTORS THAT DETERMINE ADOPTION OF FERTILIZER SUBSIDY
PROGRAM AMONG SMALL-HOLDER FARMERS; IN SIGOMERE

WARD, SIAYA COUNTY
SAB 490; RESEARCH PROJECT 1
BY
OWINO MICHAEL OMONDI
BAE/0042/15
Department of Agriculture and Veterinary Sciences
January 2019
WELCOME
©
INTRODUCTION
 The Kenyan government implemented the fertilizer subsidy in 2007 as a response to

recommendation by National Accelerated Agriculture Input Program (NAAIAP) which
recommended an increased fertilizer use to maximize productivity.
 The subsidy program was intended to improve inputs access and affordability for target
farmers, so as to uplift them out of the vicious cycle of poverty and participate in agriculture
as a business enterprise (Mathenge 2012)
• The targeted farmers were those who could not afford farm inputs at commercial prices and
those farmers growing maize/rice and had at least 2.5 acres of land (Tegemeo 2018)
• According to Huang (1998), says that agricultural subsidies if in right quantities could be used
to break the vicious cycle of poverty on the farmers. This is as a result of in an increased
productivity that is attained in this sector.
• Denning et al. 2009 shows that China, Malawi and some green revolution member countries
are a few that have used subsidies effectively
• Despite implementing the subsidy program, not much has been achieved and for that reason
there's is need to investigate the factors that determine adoption of fertilizer subsidy program
among smallholder farmers and this study will consider those farmers in Sigomere Ward in
Siaya county.
STATEMENT OF THE PROBLEM
• Agriculture sector is one of the key leading sectors toward s achieving Sustainable
Development Goals and Economic pillar of Vision 2030.
• Despite implementing policy programs such as agricultural input subsidies, there is nothing
worth smiling for. Food insecurity and over reliance on food importation are some of the
reported cases impeding the achievement of the outlined goals in the sector.
• For such reasons this study will try to investigate on those factors that determine adoption of
fertilizer subsidy program. Fertilizer subsidy was considered by NAAIAP as a safety program
that would address the problem of food insecurity and poverty among resource poor
farmers.
• JUSTIFICATION OF THE STUDY
• This study will give direction to the extension officers of the variables that determine the
fertilizer subsidy adoption among farmers .
• It will help the government in policy making targeted in achieving the Big Four Agenda of
Food Security and SDGs 1,2,3
• It will enable the county governments in laying down strategies and policies in matters
fertilizers subsidy program to achieve the set goals of the program
RESEARCH OBJECTIVES
• To determine socio-economic factors which influence the adoption of the fertilizer subsidy
program among small-holder farmers in Sigomere Ward.
• To determine the extent of adoption of fertilizer subsidy program among small holder farmers
in Sigomere Ward.
RESEARCH HYPOTHESIS
• Socioeconomic factors do not influence the adoption of fertilizer subsidy program among
farmers in Sigomere ward.
• Small holder farmers in Sigomere ward have not adopted the fertilizer subsidy program.
LITERATURE REVIEW
• Overview Of Fertilizer Subsidy In Kenya;

Liberalization of fertilizer markets started in 1992 and the subsidy program was implemented in
2007.
• Structural Adjustment Programs In The Ministry Of Agriculture;
Agricultural finances, loans and grants, subsidies.
• Adoption Concept Among Smallholder Farmers- determinants of fertilizer adoption;

Age, gender education level, farming experience etc.
• Subsidy Programs Implemented By The Kenyan Government;

Certified seed subsidy, Fertilizer subsidy and Agricultural machinery subsidy.
RESEARCH MATERIALS AND METHODS
STUDY AREA;
• Sigomere ward- North Uholo location and East Uholo location.
8 sub-locations.
THE SAMPLE SIZE AND SAMPLING PROCEDURE

• Cochran (1963:75) formula for large population; n= (Z2pq/d2) 100
• Sample size ; 384.
• The sampling design in this study will involve Stratified random sampling
RESEARCH DESIGN
• This investigation shall be descriptive and it will employ descriptive research
design
RESEARCH METHODS AND MATERIALS
• Target Study Population; 384
• Data Collection Tools;

Questionnaires will be used.
• Methods Of Data Collection;

Direct interviews and observations will be used.
• Data Analysis ;
The data collected will be analyzed by using Statistical Package for Social Sciences
(SPSS) software version 25 at 95% confidence interval
RESEARCH MATERIALS AND METHODS
ANALYTICAL MODELS
1. Heckman Two-Stage Model
a) Stage one-Selection Equation ;
Yi*= βXi+ᶓi where ᶓi~ (0,δ2)
Where Y ; latent variable reflecting the net benefits (not observable) from the technology. These are
influenced by the explanatory variables represented by the column vector X, β; vector of the estimated
parameters and ᶓ; vector of the error term.
• Yi*= 1 if Yi*>0 Yi*= β0+β1Age+β2Edu+β3Land+β4Crd+β4Income+β5Wealth

+β6HhS+β7Dst+β8Gender+ᶓi
• Yi*= 0 if Yi*≤0
Stage two – Outcome Equation
• Qi*= βiXi+ βƛƛ+µi if Yi*>0 where; βƛ = Coefficient of Inverse Mills Ratio
• Qi*= Quantity of fertilizer subsidy bought. βi= Vector of the estimated coefficients
• Xi = Vector of the explanatory variables ƛ= Inverse Mills Ratio
Qi*= β0+ β4Income +β2Edu+β5Wealth + βiXi+ βƛƛ+µi

APPENDICES.
• Sample Questionnaire.
• Work Plan; December 2018- May 2019
• Budget; Kes. 7800.
THE END
THANK YOU

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FACTORS THAT DETERMINE ADOPTION OF FERTILIZER SUBSIDY

PROGRAM AMONG SMALL-HOLDER FARMERS; IN SIGOMERE

SAB 490; RESEARCH PROJECT 1

Department of Agriculture and Veterinary Sciences

 The Kenyan government implemented the fertilizer subsidy in 2007 as a response to

• Overview Of Fertilizer Subsidy In Kenya;

• Adoption Concept Among Smallholder Farmers- determinants of fertilizer adoption;

• Subsidy Programs Implemented By The Kenyan Government;

THE SAMPLE SIZE AND SAMPLING PROCEDURE

• Target Study Population; 384

• Data Collection Tools;

• Methods Of Data Collection;

• Yi= 1 if Yi>0 Yi*= β0+β1Age+β2Edu+β3Land+β4Crd+β4Income+β5Wealth

Qi*= β0+ β4Income +β2Edu+β5Wealth + βiXi+ βƛƛ+µi

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