Effect of Climate-Smart Agriculture on Profitability of Smallholder Potato Agri-Enterprises in Nyeri County, Kenya

Abstract

Climate change has affected the agricultural sector negatively resulting in income losses among farmers. To curb climate change effects, various agricultural stakeholders have recommended Climate-Smart Agriculture, Technology, and Innovation Management Practices (CSA TIMPs) as prerequisites for adaptation to climate change. Despite the availability of these innovations in Nyeri County, there is a significant underutilization of these services. The factors influencing the adoption of these innovations in Irish potato production, as well as their profitability in small-scale potato Agri-enterprises, remain unclear. This study seeks to address these knowledge gaps by investigating the Utilization of CSA TIMPs, identifying the determinants of their application, and assessing their profitability in the context of small-scale potato farming. The specific objectives of this study were to analyze the level of adoption vis a vis availability of CSA TIMPs among potato entrepreneurs, to evaluate the profitability of CSA TIMPs, and to analyze the determinants of adoption of CSA TIMPs among potato Agri-enterprises in Nyeri county. The study's sample size was 384 households in Kieni sub-County, Nyeri County. Qualitative and quantitative data were collected using semi-structured questionnaires. To assess the utilization of five CSA TIMPs; agro meteorology, and use of Information Communication Technology (ICT), group and cooperative membership, and proper post-harvest storage techniques were ranked using the Kendal rank correlation coefficient. A gross margin analysis was conducted to evaluate the profitability of the TIMPs and a multi-variate probit model to analyze the determinants of adoption of the TIMPs. The results indicated a strong positive correlation (Kendall’s tau = 0.87) between the availability of CSA TIMPs and their utilization. T-test results showed that the adoption of CSA TIMPs, particularly agro-meteorological services, has a significant positive impact on profitability at the 5% significance level. Age, experience in potato farming, income, and size of potato Agrienterprises do play a role in the adoption of specific CSA TIMPs at 0.02**(5%), 0.09*(10%), 0.01*(10%) and 0.02** (1%) respectively. For interventions to address climate change to materialize, policymakers must consider the accessibility of various CSA facilities among farmers. CSA providers should also consider targeted training programs on CSA awareness, the Creation of experience-sharing platforms, and awareness campaigns to incentivize adoption. By implementing these recommendations, the adoption of CSA TIMPs can be enhanced across different demographic groups, leading to a more resilient and sustainable agricultural sector.