The Impact of Conservation Tillage on Maize Yield and Input Demand: The Case of Smallholder Farmers in North‐West Ethiopia

18 Pages Posted: 4 Oct 2018

See all articles by Yohannis Mulu Tessema

Yohannis Mulu Tessema

Addis Ababa University

John Asafu‐Adjaye

University of Queensland - School of Economics

Bekele Shiferaw

Partnership for Economic Policy (PEP)

Date Written: October 2018

Abstract

This study analyses the economics of conservation tillage (CT) with respect to its effect on maize yield and chemical fertiliser, herbicide, and female and male labour demand. We estimate production and input demand functions using seemingly unrelated regressions on plot‐level cross‐sectional farm household data collected in the north‐west of Ethiopia. A two‐step control function is applied to address potential endogeneity bias due to the inclusion of the CT adoption decision as an explanatory variable. Our results show that CT increases maize yield and chemical fertiliser demand. Additionally, the results show that the adoption of CT reduces female and male labour required for crop production. However, this is achieved through the increased use of herbicides, which might have an undesirable health and environmental effects.

Keywords: conservation tillage, input demand, maize yield, seemingly unrelated regression

Suggested Citation

Tessema, Yohannis Mulu and Asafu‐Adjaye, John and Shiferaw, Bekele, The Impact of Conservation Tillage on Maize Yield and Input Demand: The Case of Smallholder Farmers in North‐West Ethiopia (October 2018). Australian Journal of Agricultural and Resource Economics, Vol. 62, Issue 4, pp. 636-653, 2018, Available at SSRN: https://ssrn.com/abstract=3260102 or http://dx.doi.org/10.1111/1467-8489.12270

Yohannis Mulu Tessema (Contact Author)

Addis Ababa University ( email )

King George VI St
Addis Ababa, 1000
Ethiopia

John Asafu‐Adjaye

University of Queensland - School of Economics

St Lucia
Brisbane, Queensland 4072
Australia

Bekele Shiferaw

Partnership for Economic Policy (PEP) ( email )

P.O. Box 30772-00100
ICIPE - Duduville Campus, Kasarani
Nairobi
Kenya

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