Conservation Agriculture as a commercialisation tool for small holder farmers

Conservation Agriculture as a commercialization tool for small holder farmers

1. Conservation
Agriculture as a
Commercialisation Tool
for Small Holder
Farmers
Michael Jenrich, SAT & GIZ
ACCA, Lusaka, 2014

2. SMALL HOLDER FARMING
•Smallholder farming in Africa is largely subsistence based, rural
families do not see farming as a way to generate income
•Farmers not generating income from their farms, productivity is
low and unreliable
•Most land is used (overused) for food crops
•No investments (inputs, infrastructure)
•Private sector has no incentive (interest) to invest
•Government/donor support focus on seasonal inputs, (food
security) without much –lasting- impact
•Short term, often without agronomy component
•Lacking extension and improvement of farming practices
•Missing of cash crops and market support
•Lack of capacity support

4. CA background *
Developed and rolled out by large scale farmers
Promoted by donors and NGO’s to address food
insecurity/poverty in the smallholder sector
Often in humanitarian context
Improving household food security (cereal yield increase)
Climate change and drought mitigation tool
Supporters ‘reported’ huge yield increases , ‘quick fix’, often
the universal solution to small holder farming (‘panacea’)
discussion on yield impact alone may overlooked the main
impacts
Quick expansion due to donor support, but decline when that
ceased (donors focus on another flavour)
Limited PS involvement

* Incomplete and biased view

6. PS in the small holder context
Private sector (PS) involvement is very limited
Small holder sector is problematic and high
risk
PS did (does not) not see the need to invest
in small holder sector
small areas, low yields, poor infrastructure
Farmers not organized (no bulking)
Insecure tenure, no credit, poor track record
Very little incentive to change
Cemented structures and approaches without
vision

7. Global Farming Outlook
Increasing demand (shortage) for agric produce
results in higher prices and new options
Economic need and potential to include small
holders in main stream (commercial) agriculture
Improved productivity will make small holders
competitive
Many small holders’ lands holdings are sufficient
to generate income, if utilized efficiently
Overall production in many countries could be
increased significantly
PS needs production potential of small holders

8. Agric Opportunities
Currently low production (maize yields of > 1 MT, Cotton >
0.5, cattle off take of > 5%) can be improved easy
If public and private sector identify best options quick
return in the small holder sector is feasible (low fixed costs)
Many small holders can and will commercialize swift if
selected and supported appropriately
Small holders can generate sufficient income from their
farms and produce surplus
PS can utilize the vast potential of small holder areas
Farmers, private sector and national economies would
benefit

9. Agronomy (CA) is not enough
Main issues have to be address simultaneously
1.Productivity
Agronomy (CA), crop, land management, seed, fertilizer,
extension, etc.
1. Organisational set up (from formal or informal groups)
Economy of scale, bulking, group access, training and
extension
1. Input & Output systems
Access to markets, improved input & output practices
Market information
1.Policy
Appropriate support form policy for small holders
(Groups, finance, security, incentives)

11. CA Benefit: (improved productivity)
Timing and precision also for farmers without tillage and
machine access, at low costs
Reduced costs of planting (seeding) through zero till, for
farmers with machines
Reduced risk of small holder production and improved
planning-ability
Improved productivity, establishment of crops timely and
precise, Better land and crop management (CA +)
Highly appropriate for market based crop interventions
CA as central pillar,
provides quick & reliable way to increase and stabilize productivity
(reduce tillage costs and stabilize yields)
without large capital investments
Farmers are achieving higher productivity and production
security (reduced risks), which will attract private sector
Improved productivity opens opportunities to participate in
markets and generating better incomes
Extension extensive

12. Maize yields at different planting date*

3,0
2,3
1,5
1,1
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
Mid November 0Kg D 0Kg AN Late November 0Kg D 0Kg AN Mid December 0Kg D 0Kg AN Late December 0Kg D 0Kg AN
Planting Date
Yield (THa
-
1)

Data FAO trial 2008/09, no fertilizer

13. IN PRACTICE

15. Conventional CA
yield target (MT/ha) yield target
0.5 1 2.5 0.8 1.5 3.0
Ploughing (animal drawn) 75 75 75
Discing (animal drawn) 50 50 50
Planting (hand) 25 25 25
Spraying (x 1, conv, x 2 CA) 25 25 25 50 50 50
Direct seeding (animal or 2 wheel tractor) 60 60 60
Costs to planting, spraying , harvesting 225 250 250 160 185 185
Total Cost/ha 266 367 494 207 302 429
Return (@ $400/MT) 200 400 1000 320 600 1200
Profit, Loss/ha -66 34 506 113 299 771
Cost profit CA vs. conventional (hand)

16. Conventional CA

yield target (MT/h) yield target

3.5 5 6 3.5 5 6
Ploughing
150 150 150
Discing
100 100 100
Planting
50 50 50
Spraying (x 2, conv, x 3 CA)
50 50 50 75 75 75
harvesting
150 150 150 150 150 150
Direct seeding
100 100 100
Costs to planting, spraying ,
harvesting
500 500 500 325 325 325
Inputs (seed fertilizer etc.)
408 523 653 408 523 653
Total Cost/ha
1158 1316 1482 983 1141 1307
Return (@ $300/MT)
1050 1500 1800 1050 1500 1800
Profit, Loss/ha
-108 184 318 67 359 493
Cost profit CA vs. conventional (mech.)

18. PS links and involvement
Sustainable CA uptake need to be PS driven (CA lobbying by PS)
Increased viability of PS investments, also supported through:
Incentives (subsidies, e.g. for PS supporting CA), support and
incentivise PS to invest in the small holders sector
Affordable credits for farmers, farmers groups and PS
Coordinate interventions (e.g. demos, mechanisation)
Set up support structures (e.g. CA tillage units, plant
protection and harvest contracting)
(no hand outs, farming support should not be mixed with
social welfare)
Long term development strategy (e.g. credits, infrastructure)
and investment plans (small holder policy)
Involvement of private sector is key, but does require
productivity increases as entry

20. Summary
Through CA small holder farmers will improve
productivity and become more attractive
partners for PS
Reduced risk
Improved productivity
Low capital investment
Given the vast potential of small holders in
South and Eastern Africa, CA in combination
with market linkages is central to unlock this
CA is a key part to increase very low income and
economic contribution of small holders in crop
farming, but, CA alone (agronomy) will not have
large impacts
PS will need to endorse and promote CA

21. thanks
Michael Jenrich
[email protected]