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Integrating soil science into agricultural production frontiers

Published online by Cambridge University Press:  05 March 2013

Anders Ekbom ,
Yonas Alem  and
Thomas Sterner
Anders Ekbom
Affiliation:
Department of Economics, University of Gothenburg, Vasag 1, P.O. Box 640, Goteborg, 40530, Sweden. E-mail: [email protected]
Yonas Alem
Affiliation:
Department of Economics, University of Gothenburg, Sweden. E-mail: [email protected]
Thomas Sterner
Affiliation:
Department of Economics, University of Gothenburg, Sweden. E-mail: [email protected]
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Abstract

This paper integrates soil science variables into an economic analysis of agricultural output among small-scale farmers in Kenya's highlands. The integration is valuable because farmers’ choice of inputs depends on both the status of the soil and socioeconomic conditions. The study uses a stochastic production frontier in which the individual farm's distance to the frontier depends systematically on individual factors. We show the importance of including key soil properties and find that phosphorus has a negative output elasticity, suggesting that farms may be using the wrong fertilizer mix. Hence, the central policy implication is that while fertilizers are generally beneficial, their application needs to be based on better soil information. This highlights the importance of strengthening agricultural extension, increased access to markets and more diversified supply of production inputs.

Type
Research Article
Information
Environment and Development Economics , Volume 18 , Issue 3 , June 2013 , pp. 291 - 308
Copyright
Copyright © Cambridge University Press 2013

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