Improving smallholders’ sorghum cultivating productivity: a potential way to reduce poverty rates and land degradation in South West Ethiopia

Improving smallholders’ sorghum cultivating productivity: a potential way

to reduce poverty rates and land degradation in South West Ethiopia

An interdisciplinary approach

19 December 2014

Words: 6579

Abstract

This research is meant to improve the productivity of small scale agricultural communities in the Southern state of Ethiopia and decrease land degradation. It is based on an interdisciplinary literature study, involving business studies, environmental engineering and earth sciences. The sorghum value chain, sustainable agriculture, microfinance, business environment, neo-Malthusian theory and techno-ecological theory are discussed. To create common ground and prevent conflicts, the various compatible disciplines are organized in a structural method and the sorghum value chain is used as a guideline.

Suitable irrigational and agricultural techniques involve supplemental irrigation, rain harvesting techniques, tied-ridging, intercropping, water conservation techniques and the use of hybrid seeds. Microfinance, eventually combined with financial support from the government, is a promising financial method to apply these techniques. Land degradation in general might decline in this area, while the growing population has a higher food security. We recommend to apply these techniques in a practical research, because the actual increase of productivity as a result of these techniques could only be quantified when practical research is done.

Supervisor: Kenneth Rijsdijk Tutor: Maartje Hamers

Author Student number Field of expertise

Fabian Koning 10462430 Business Studies

Mariana Vannier 10855599 Environmental Engineering

2

Table of contents

3 Figure 1: The location of the Southern state of

Ethiopia (Bekele, 2001) Figure 2: Evapotranspiration and yield of sorghum, maize and wheat.

Introduction

This research is meant to improve the productivity of small scale agricultural communities in the Southern state (which is located in the south west) of Ethiopia (figure 1) and decrease the land degradation. It is based on an interdisciplinary literature study and is in accordance with our case: creating a sustainable future for our natural ecosystems.

Context

Ethiopia is a country situated in the eastern part of Africa, where poverty is widespread and residents are mostly working in the agricultural sector. 29,6% of the people living in Ethiopia are classified as being poor according to their national poverty standard. In urban areas (25.7%), the poverty rate is about 5% less than in rural areas (30.4%). In these rural areas, the major source of income is agriculture (Abro et al., 2014).

This research involves small scale agricultural communities. Small scale agricultural communities are characterized by a land area with a surface of 0.5-5ha. Their agricultural goal is feeding their family or achieving an income. There is limited market access, poor infrastructure and a high population pressure. These communities do not have the resources for fertilizers etc. and the political environment is uncertain. Their agricultural practices are unsustainable because their environment is subject to a vicious circle of poverty (Izac & Swift, 1994).

One of the most important threats to the agricultural productivity in the Southern state of Ethiopia, is drought. Ethiopia consists of multiple zones, with different rainfall patterns. The southern zones are mostly dependent on spring rains, while the rest of the year it is relatively dry. Between 1971 and 2011, the rainfall in the southern part of Ethiopia declined, not only in the spring but also during the summer season (Viste et al., 2013). Because of the threat of droughts, this research focusses on the cultivation of sorghum. Sorghum is a drought tolerant crop, which will also be productive when there is a low evapotranspiration as a result of low water availability (figure 2). Ethiopia is also facing threats related to land degradation (Taddese, 2001). One of the problems related to land degradation is deforestation. According to local farmers in the Arbaminch and the Chencha areas, situated in the Southern state of Ethiopia (figure 3), the main cause of this

deforestation is the growing population and declining productivity of the agricultural land (Assefa & Bork, 2014). This statement has been confirmed concerning surrounding areas where

deforestation is also at a high rate (Garedew et al., 2009). To be able to feed all the residents, expansion of the agricultural land is necessary at the expense of the forest. Between 1972 and 2006, there has been a decline of 23% of forest cover in the areas of Arbaminch and Chencha.

4

Relevance

By reducing land degradation, farmers can successfully cultivate the same area for a longer period of time and therefore they will not need a new land area. Improving the productivity will also decrease the expansion of agricultural land surface, because they can feed a growing population with the same land area. These measures will thus prevent deforestation due to the expansion of agricultural landscape and this is a priority because deforestation is one of the most significant causes of changes in biodiversity. Preventing changes in biodiversity is an important issue because according to the theory of Chapin et al. (2000), humans have just triggered the sixth major

extinction event in the history of life.

Reducing poverty is also one of our targets. The success of the agricultural smallholder sector has been proven to be directly linked to the welfare of most people in the rural area (Abro et al., 2014). To improve the food security and living conditions of the poor people in the rural areas, it is therefore of significant importance to increase the productivity of small scale agriculture. Knowledge, gaps, interdisciplinarity

In order to successfully apply techniques in small scale agricultural communities in the Southern state of Ethiopia, it is important to make clear links between social science and environmental science. Interdisciplinary research is essential (Garedew et al., 2009). While there is sufficient social and environmental science available (as included in theoretical framework and results), the links between those disciplines are the key to solving the complex problems that this research is addressing. An expert on environmental science is not able to identify the economic and political context in which his/her techniques has to be integrated,

while an expert on social sciences has no knowledge of the agricultural and irrigational techniques. Research from these separate disciplines are therefore destined to fail. Knowledge gaps can be overcome by combining insights from different disciplines into one

interdisciplinary research, because one single discipline cannot comprehensively address this problem. In this research, the environmental aspects will be addressed by an environmental engineer and an earth scientist. The social aspect will be addressed by a business expert. The environmental engineer will come up with certain methods to improve the productivity in a sustainable way. In this case, irrigation and permaculture are the main focus and low-cost measures have priority.

Earth scientific knowledge will be used to analyse more modern agricultural methods. Which are suitable for this area? Some methods have already proven itself in or around the southern part of Ethiopia and the possibility of applying these methods in the project area is researched. One major constraint in using modern methods in this area is the financial situation and therefore it is important to keep costs in mind.

To make sure that the methods can actually be applied in the small scale agricultural communities, it is essential that the social environment is identified and that the farmers are able to invest. The business expert will analyse the local context regarding the financial environment and the market, resulting in a business strategy.

Figure 3: Location of areas with deforestation, situated in the Southern state of Ethiopia (Assefa & Bork, 2014)

5

Aim/question

Environmental science, social science and clear links between those disciplines are required to answer the following research question: “How can agricultural and irrigational methods be

integrated in order to support the cultivation of Sorghum in small scale agricultural communities in the Southern state of Ethiopia and improve productivity and yield, while reducing land

degradation?”

Overview

This report consists of a theoretical framework, methods, results and conclusions. In the theoretical framework, the relevant theories for this research are discussed. In the methods, there is described how this report was established and how we conducted the research. The processed information and calculations which are necessary to answer our research question are shown in the results and the research question is answered in the conclusion.

6

Theoretical framework

In this theoretical framework, the underlying theories which are relevant for this research are discussed. The first theory focusses on the sorghum value chain, which is a guideline in this research. Following, there are some theories which involve sustainability and this paragraph is ended with some theories about the business discipline.

Sorghum Value Chain

The value chain is a business management concept developed by Micheal Porter (toolshero, 2014). Porter describes the value chain as a collection of activities that are performed by a company to create value for its customers (toolshero, 2014). The Sorghum value chain, as shown in figure 4, depicts the processes in the lifecycle of sorghum in Ethiopia. The technologies and methods that will be addressed in our research are focussed on the first two steps of the value chain, “inputs” and “production”. Those steps are the most important for contributing to a higher productivity of the crop. The African Agriculture Technology Foundation (AATF) report by Mbwika et al. (2011) states all the major actors in the value chain: research institutes which produce seeds, seed producers, smallholders responsible for farming activities, local traders and brokers, wholesalers and retailers; processors; and consumers.

7

Neo-Malthusian and techno-ecological theory

Two theories that are relevant in this situation of food production are discussed in an article of Scanlan (2001); the Neo-Malthusian theory and the techno-ecological theory. These theories focus on food security, in which the Neo-Malthusian theory focusses on the number of people that the earth can feed. It involves the ability of the earth to support a sustainable society, in which population dynamics, such as population growth, are causing social change and could result in ecological disaster. People who plea for the Neo-Malthusianism theory, mostly argue for population control programs to decrease the human pressure on the ecosystems, since the carrying capacity of the earth is limited (Ehrlich et al., 1993). There has been written about the Neo-Malthusian theory since 1992, for example by Meadows et al., Ehrlich et al., Brown and Kane, Smil and Cohen (as cited in Scanlan, 2001).

The techno-ecological theory focusses on human ability to adapt technology to population demands on the global ecosystem. Technology plays a vital role with adapting to challenges that the earth and its ecosystems are facing. Examples involving food security are improvement of agriculture or better infrastructure that improves accessibility of food. There has been written about the techno-ecological theory in relation to food security since 1965, by Berry and Cline, Boserup, Crosby, Hawley, Micklin and Choldin and Simon (as cited in Scanlan, 2001). Scientists that support the techno-ecological theory believe that technology will enable humans to face future challenges and increase the carrying capacity of the earth (Scanlan, 2001).

These two theories are in a certain way criticising and opposing each other. It is, however, also possible to see these theories as complementary. The Neo-Malthusian theory believes in the threat caused by population dynamics. But adaptation (which is part of the techno-ecological theory) of the population in certain communities or regions could be totally different than in other places of the world; in some parts of the world, the population dynamics may increase the threat, while in the same circumstances, the threat might actually be decreasing in other parts of the world because of adaptation .(Scanlan, 2001). On the other hand, techno-ecologists assume that adaptation is driven by the development of technology but they should also realize that the development of technology is in its turn driven by population dynamics; potential scientist are being born and the population dynamics are also giving new insights in science that stimulates technology (Simon, 1981).

These theories are relevant in this case, because they involve food security, which is in accordance with the improvement of the agricultural communities of Ethiopia. The Neo-Malthusian theory describes population dynamics that threaten the food security; in this case, the limit of the carrying capacity of the agricultural surface of this particular region in Ethiopia is approaching, partly due to population growth. It is therefore needed to expand into the forest or make excessive use of the soil properties, unless the techno-ecological theory offers solutions and allows the local communities to adapt to the changing conditions. In accordance with the techno-ecological theory, agricultural and irrigational methods will be assessed to adapt to the limited carrying capacity, from the perspective of environmental engineering and earth sciences. These methods are focussed on the ‘inputs’ and ‘production’ aspect of the sorghum value chain.

Sustainable Agriculture

The originator of the term ‘Sustainable agriculture’ was Gordon McClymont, an Australian

agricultural scientist, in 1991 (Rural Science Graduates Association,. 2002), and it has been defined as an integrated system of plant and animal production practices having a site-specific application that will last over the long term, it means that it consists of environmentally-friendly methods of farming that allow the production of crops or livestock without damage and depleting to human or natural systems. More specifically, it might be said that this concept includes the ideal of preventing

8

adverse effects on the environment and resources, as well as to those working or living on the farm or in neighboring areas (Gold, M., July 2009).

This concept was essential during the development of this study because all techniques and results was analyzed from an sustainable perspective to confirm their suitability. The traditional techniques are focused in irrigational systems and in revitalizating the already existents damages to the soil and preventing future environmental degradations caused by agricultural practices and their’s needs, while the modern techniques was focused in increasing the sorghum productivity but considering that the cultivating system must last over the long term. This concept also focus on the ‘inputs’ aspect of the sorghum value chain.

Microfinance

The improvements of ‘inputs’ and ‘productions’ of the sorghum value chain require certain

investments, in which microfinance could contribute. The roots of the microfinance concept can be found in the story of Muhammad Yunus and Bangladesh’s Grameen Bank (Aghion & Morduch, 2005). Muhammad Yunus, an economist trained at Vanderbilt university, started some experimental lending projects to poor households in the nearby village of Jobra. These small amounts of money where enough for villagers to run simple business activities. Yunus found that, even though villagers could offer no collateral, they were able to repay their debts. After this success story Yunus convinced the central bank of Bangladesh to set up a special branch, which eventually evolved into the Grameen bank. The innovation of group lending made Grameen grow even faster and by 1992 they had over one million members in Bangladesh, and by 2002 this number increased to 2.4 million. Nowadays there are over thirty countries using replications of these concepts, of which most are in developing countries (Aghion & Morduch, 2005).

As stated in Morduch’s paper (2000, p.617): “Microfinance promises both to combat poverty and to develop the institutional capacity of financial systems through finding ways to cost-effectively lend money to poor households. Poor households are typically excluded from the formal banking system for lack of collateral, but the microfinance movement exploits new contractual structures and organisational forms that reduce the riskiness and costs of making small, uncollateralized loans.” Microfinance has been introduced to contribute to the fight of poverty in low income countries such as Ethiopia. By enabling poor smallholder farmers in the SNNPR to receive the essential financial resources without collateral, they are able to purchase agricultural and irrigational necessities to improve their productivity. There is a difference between microcredit and microfinance. The microcredit concept only refers to small loans, where the microfinance concept is broader. It embraces efforts to collect savings from low-income households, to provide insurance, and to help in distributing and marketing clients output (Aghion & Morduch, 2005). In this paper the main focus is on microcredit.

Business Environment

All projects by microfinance institutions are subject to the environment and context in which they are carried out. This differs per region and therefore it is important for microfinance institutions to have a broad understanding of the environment. In this paper the business environment will be identified through the use of the PESTLE analysis (Grant, 2013). The analysis is useful to clarify the external influences in the region. Six environmental spheres, of which only political and economical will be addressed, are classified by source, namely political, economic, social, technological, legal, and environmental (Grant, 2013). From here we can provide baseline

information to assist in the development of strategies and provides an overview of several external influences, which will make the implementation and financing of irrigational and agricultural

9

technologies more efficient and sustainable. The interaction between the implementation and

financing of the irrigational and agricultural methods, and the research about these techniques itself, will be further elaborated in the methods.

10 Figure 5: Schematic

overview of the organization of the research, involving the major elements and the various disciplines are addressing these elements. This scheme displays the structure of the research and is leading in creating common ground and preventing conflicts between disciplines.

Methods

Because of the interdisciplinarity of this research, suitable research methods are essential to create common ground and prevent conflicts. The various disciplines in this research are compatible and in order to prevent conflicts, the research is organized according to figure 5. This literature research focusses on an interdisciplinary research question, which consists of three major elements: small scale agricultural communities, improving the productivity and reducing land degradation. The social, political and economical context of the small scale agricultural communities are studied by business science and this will result in the required knowledge to successfully implement and finance agricultural and irrigational technologies. The improved productivity and reduction of land degradation are studied by environmental engineering and earth sciences, whereby environmental engineering focusses on traditional and irrigational methods, while earth sciences focusses on modern techniques. The results of this part of the research will be irrigational and agricultural techniques, which will be combined with the knowledge of the business studies regarding the implementation and financing, and this will result in a strategy to improve productivity and reduce land degradation in small scale agricultural communities in the Southern state of Ethiopia.

The sorghum value chain is used as a guideline in our research. All the disciplines will focus on some parts and processes of the value chain. For instance the environmental and earth sciences disciplines will address the inputs and production. These are related to improved technologies and methods to enhance agricultural productivity. The business discipline will seek common ground in the financing of the processes, inputs and production mentioned by the other disciplines in the value chain. Furthermore the business study will provide an overview of political and economic

significance to the smallholder farmers and small scale communities who contribute to the Sorghum Value Chain.

Insights from the various disciplines will be combined and result in a strategy to improve

productivity and reduce land degradation of small scale agricultural communities in the Southern state of Ethiopia. The chosen business approach combined with the irrigational and agricultural techniques should enable the small scale agricultural communities to develop a profitable small business, which generates sufficient yield for their growing population and reduces land

degradation. Deforestation due to expansion of the agricultural land surface is no longer a necessity and a sustainable future for our natural ecosystems should be maintained. This interdisciplinary method is profitable for both the environment and the business conditions.

11

Results

The results of this research are based predominantly on scientific literature and several documents from eminent institutions which involve agriculture and social context of Ethiopia. As described in the introduction, small scale agricultural communities have limited resources and have to cope with an unstable environment. In order to escape from their vicious circle of poverty, it is essential to create a sustainable business strategy. The social environment, involving economic and political context, is discussed. Afterwards, agricultural and irrigational techniques which have been proven successful in reference projects are analysed and their value for our research area has been

considered. However, these techniques cannot simply be applied without any knowledge of the appropriate business strategies which are suited for the Southern state of Ethiopia. Costs and financing methods have been contemplated.

Economical context

First the economical context. Ethiopia’s Gross Domestic Product (GDP) is $118,2 billion and with a population of almost 97 million people the average GDP per capita is $1,300, ranked 211th in the world. As mentioned in the article by Diao (2010): “The agricultural sector accounts for more than 40% of national GDP, 90% of export, provides basic needs and income to more than 90% of the poor, and 85% of the population are living in the rural areas and depending on agriculture for livelihood, therefore there is no questioning about the economic importance of the agricultural sector for sustainable development and poverty reduction in Ethiopia”. The sector has suffered from poor cultivation practices and frequent drought, but due to the recent efforts from the Government of Ethiopia the resilience have strengthened. (CIA, 2014).

The government is pushing to diversify into manufacturing, textiles, energy generation and services, but to successfully transform the economy they need economic development (Mellor & Dorosh, 2010). As stated in the IFPRI (Mellor & Dorosh, 2010) report: “A high rate of agricultural growth has positive implications for economic development of low-income countries in terms of increasing employment and accelerating poverty reduction”. Due to the increase in income the non-farm activities are likely to expand in the small towns, which consequently leads to their economies of scale (Mellor & Dorosh,2010). The most common way to achieve this rapid agricultural growth is to engage middle farmers, who are able to adopt new technologies and produce significant marketed surpluses, and big enough to have spending patterns that drive the rural non-farm sector (Mellor & Dorosh, 2010). In this paper the focus will not be on middle farmers, but on all levels of

smallholder farmers in the southern part of Ethiopia. Thus, also the farmers who lack the financial resources to adopt the new technologies. The use of microcredit can enable poor smallholder farmers to make these essential investments and thereby contribute to the agricultural and economical growth of the country.

Political context

Besides the economical factors, the political environment is also important. Ethiopia has had a turbulent political history in the past decade. In 1974 a socialist state was established after emperor Haile Selassie was deposed by a military junta, the Derg (CIA, 2014). This change of government led to a switch in land tenure from the feudal landlords to peasant associations. Due to this change the small scale agricultural activities could expand in Ethiopia. The regime tumbled in 1991 after a series of bloody coups, uprisings, wide-scale drought, and massive refugee problems and was replaced by the Ethiopian People’s Revolutionary Democratic Front (EPRDF), a coalition of ethnically based resistance groups, with the Tigray People’s Liberation Front as leading party (Berhanu & Poulton, 2014).

12

The political significance of agriculture within Ethiopia is well understood by the EPRDF and therefore they launched the Agricultural Development Led Industrialization (ADLI) strategy in 1993. The major component of ADLI is the national extension package program known as Participatory Demonstration and Training Extension System (PADETES). (Elias, 2013)

The article by Berhanu & Poulton (2014), argue that the investment by the EPRDF government in agricultural extension has been driven by twin objectives. One being the objective to enhance productivity (yield) and production capacity of smallholder farmers, which consequently leads to poverty reduction and broad-based growth. To achieve these goals the PADETES program focused on supply-driven technologies such as improved farm technologies, management practices and know-how to smallholder farmers (Elias, 2013). The other objective, mentioned by Berhanu and Poulton (2014), was to extend the party’s political control throughout the country and broad-based growth is seen as essential to achieve legitimacy for the government.

The extension program has had a positive effect on the farm productivity. However, in order to fully utilise the potential of the program, some constraints need serious consideration (Elias, 2013). First of all, the program should avoid entry barriers. Second, access to diversified and quality agricultural inputs should be improved. Third, the poor farmers in Ethiopia lack the necessary financial means to implement extension advices (Elias, 2013).

Traditional agricultural methods

Traditional agricultural methods could contribute to these improved farm technologies which are pursued by the government. The current land management practices are flawed and there is need for the implementation of sustainable agricultural techniques. With mainly semi-arid climate the area has to cope with insufficient precipitation or irregular rainfall patterns. Most of the rain is returned as soil evaporation and may disappear as surface runoff.

The crop growth depend not only on precipitation rate but also on the ability of the soil to absorb and store water. Inadequate agricultural practices that reduce this ability may add their negative effects to the natural main causes of soil moisture scarcity and then lead to a severe water stress reality in smallholders communities. To prevent those negative effects we believe in the potential to improve crop productivity through combinations of rainwater harvesting and permaculture methods which enhance infiltration and reduce surface runoff and soil evaporation.

In our study case area there is the Rift Valley basin with an area of 52,739 Km2 and an irrigation potential equivalent to an irrigable area of 39,000 hectares and a number of lakes of varying size with high environmental significance that maintains some health balance in the area (Van Halsema et al., 2011). But besides that the region still suffering with physical water scarcity and modern irrigation can be unaffordable from an economic perspective and also from an environmental one. Hence, rainwater harvesting and management technologies hold a significant potential for

improving rainwater use efficiency and agriculture productivity in the region. These schemes may be more cost-effective than developing additional irrigated lands. More importantly, these schemes can be developed in areas where there is no water available for irrigation. Because of the lack of available information on groundwater resource potentials, modern irrigational methods cannot be considered for this research (Agricultural Transformation Agency, 2014).

Other solutions can be found in comparative studies in Sub Saharan African countries. The best experiences in one country have the potential to be adapted in another country which has similar problems of water scarcity and that increases the chances of finding the most appropriate and suitable rain fed irrigation techniques for our study area.

13 Figure 6: Different micro-catchment systems (Biazin et al. 2011).

There are a wide variety of techniques for collecting, storing, and using natural precipitation for agricultural purposes and it will be analyzed and discussed before it is clear which is the best for helping to improve sorghum crops productivity in Southern Ethiopia. Agricultural water uses in our study case includes the auxiliary irrigation of crops, the provision of water to animals health and for fodder if necessary.

Micro-catchment systems and permaculture water conservation techniques

One technique to improve water availability is the use of micro-catchment systems (figure 6). These are designed to collect runoff from a relatively small catchment area mostly 10-500 m2, within the farm boundary and because of that can be easily controlled by the farmer. Surface runoff water storage in the soil guided into a type of infiltration enhancement structure and used to grow plants and for dry spell mitigation. The ratio of the catchment area to the cultivated target area can vary between 2:1 and 10:1 (Desta, 2007; Liniger et al., 2011).

Not only the harvesting is important, but also the conservation of water. Permaculture involves techniques that are improving this water conservation. These techniques are designed to increase locally the soil infiltration and consequently the soil moisture and decrease rain off and

consequently decrease soil erosion. We considered a comparative study between current rain harvest techniques in similar areas to decide which one is the most suitable to increase sorghum productivity and reducing land degradation and water stress at Rift Valley area on Southern Ethiopia. This will be illustrated with three examples.

In the drought-affected and degraded lands of northern Ethiopia, stone bunds are constructed along the contour of 30 cm wide and average height of 0.74 m (Nyssen et al., 2007; WOCAT, 2010). They have been effectively used to reduce soil erosion, to shorten slope length and to retain soil moisture.

In Machakos district of Kenya the grown in a consortium of maize and cowpea on slopes, enable an average increase in infiltration of 30% in the dry season and 94% in the wet season (Kiepe, 1995).

14 Figure 7: Macro-catchment rainwater

harvesting systems designation. (Oweis et al. (2001).

Figure 8: Different macro-catchment systems (Biazin et al. 2011).

In southern Ethiopia, the farmers of Konso have their own traditional terraces, the best locally available technique for soil and water conservation. About 80% of the cultivated land is well terraced in Konso (EPA, 2004). Vegetation barriers, using local grasses, woody species and

succulents, can reduce soil erosion by 70–90% in an alley-cropping system in central Burkina Faso (Spaan et al., 2005).

Macro-catchment systems

Also, macro-catchment systems could contribute to water availability. These systems usually consist of three components: the rainwater collection

catchment, the storage structure, and the target area (figure 7). The water can be used either for

supplemental irrigation during dry-spell periods or for personal domestic consumption. The ratio of the collection catchment to the cultivated target area can vary between 10:1 and 1000:1 (Liniger et al., 2011).

Many of the applied techniques are indigenous or modified from indigenous practices and rainwater is collected from existing paved surfaces and natural slopes (figure 8).

Again according to the data reference from the research ‘Rainwater harvesting and management in rainfed agricultural systems in sub-Saharan Africa – A review, 2011’ we have done some

15

A survey and modelling study in semi-arid Zimbabwe implied that macro-catchment systems increases water productivity, from 1.75 kg/m3 up to 2.3 kg/m3, by mitigating intra-seasonal dry-spells (Kahinda et al., 2007).

The irrigation efficiency of microdams in Tanzania was found to be very low; more than 80% of the water was lost during conveyance from the dams to individual fields (Makurira et al., 2007).

Most suitable methods

Based on our theoretical framework and our study area, the most efficient traditional and

irrigational techniques would come from combining micro-catchment methods and permaculture techniques with macro-catchment methods. The most suitable choice based on the physical characteristics and rainfall pattern in the area would be adopting the pitting or Zai Pits, terracing techniques and stone and soil bunds. These are all low costs practices, which should be integrated with the macro-catchment technique of cisterns or smaller tanks, individually installed on farms. In dry seasons, yields can increase by as much as 300 percent compared with yields without runoff harvesting. In the wet season, yields may be reduced because only a part of the land is cropped or because of water logging. (Rockström et al., 2002)

Modern agricultural methods

But not only traditional techniques are suitable; some modern techniques could also be applied for positive results. Due to its genetic properties, sorghum is very drought tolerant and the genotypes that determine this advantage have been identified (Rajarajan & Ganesamurthy, 2011). This

knowledge can be applied for the breeding of drought tolerant crops. Research has also already been done concerning the improvement of the genotype of sorghum. A mutant version of sorghum has been tested and this indicated that the harvest of this crop could increase because of this mutation. This research has given understanding of the genotype of this crop and insights in the possibilities of manipulating its properties (Burow et al., 2013). In the future, modified seeds of sorghum that have an increased productivity might be an interesting prospect for the small scale agricultural communities in the Southern state of Ethiopia. Hybrid sorghum seeds are already available on the market. These seeds are not yet optimal for regions with drought, but the yield is likely to be higher than with original sorghum seeds (Blum et al., 1992).

Increasing the productivity of the small scale agricultural communities in the Southern state of Ethiopia could also be possible with intercropping. Research conducted in a dry area in the north of Ethiopia indicated that planting sorghum in alternating rows with blackeye bean, results in a higher yield of biomass. Cultivating this crop will hardly affect the yield of sorghum, while those crops itself will give a relatively high yield and is also of high market value (Reda et al., 2004). Between every row of sorghum plants will be 0.75m of space, with a row with blackeye bean in between. Between sorghum plants on the same row will be 0.15m and between blackeye plants 0.2m, this is the same method as in Reda et al. (2004) which has been proven to be successful (figure 9).

Figure 9: Timeline with sowing and harvesting of sorghum and blackeye bean, using the same method as Reda et al. (2004).

16

Mesfin et al. (2009) investigated the influence of tied-ridging. With tied-ridging, the soil is ridged to a height of 20 centimetre or more. Within each 2 ridges, there is a space that is called the furrow, which is cross-tied with 2 metres or more in between. Seeds are planted on the ridges or in the furrows (figure 10). Tied-ridging is a form of tillage which could replace the traditional tillage methods and the increase of productivity can reach up to 45% (Mesfin et al., 2009). This is due to the decrease in runoff and the increase in water availability.

Other modern agricultural methods that were taken into consideration and investigated in our research are improving the transpiration efficiency of the crop and the use of fertilizer. To improve the transpiration efficiency, farmers should be able to make changes in temperature, wind speed and humidity and/or breed with the individuals that have the highest transpiration efficiency and try to improve the genetic predisposition of the crop (Zhanguo et al., 2009). For these measures, they will need a greenhouse and/or sterile environment which are not in accordance with a small scale agricultural community.

Fertilizers have proven to increase yield of Sorghum in other regions of Ethiopia (Mesfin et al., 2009), but multiple articles suggested that use of fertilizers is not likely to be economically feasible. Also, a possible increase of productivity will demand that the farmers are able to handle stress due to water deficits (Mesfin et al., 2009, Reda et al., 2004). These factors, combined with the fact that phosphorus may become a pollutant if not used properly and that the phosphorus resources are limited and becoming more scarce (Elser, 2012), refrain us from using fertilizers. The non-sustainable character of this method is not in accordance with the vision of this case: creating a sustainable future for our ecosystems.

Microfinance

But how can all these techniques be financed? As mentioned earlier in the political context the Government of Ethiopia has pursued an Agriculture Development Led Industrialization (ADLI) strategy since 1993. Their main objective was to accelerate agricultural growth and food security and the strategy relied on extension and rural finance to promote intensification of farm production through the use of improved seed, fertilisers and other inputs (Liverpool & Nelson, 2009). In recent years donors and nongovernmental organizations (NGOs) have tried to do the same through

microfinance. This paper will focus on the use of microfinance as a way to provide the essential financial resources most Ethiopian smallholders lack for investing in improved agricultural technology.

There are over twenty MFIs operating in Ethiopia with outstanding loans totalled at $642.2 million, with 2.8 million borrowers (Mixmarket, 2014). There are several active microfinance institutions in the region which are documented by the association for ethiopian microfinance institutions

(AEMFI), which are Letta, Metemamen, Omo, PEACE, Sidamo, Shashimene, Wisdom, Aggar, and Tesfa (AEMFI, 2014). The missions and objectives of all these institutions are similar: providing financial needs to the active poor to alleviate poverty by increasing agricultural productivity and incomes. Combining credit with training, microfinance institutions (MFIs) might provide

households with access to technologies and pathways out of poverty, which are currently inhibited

17

due to underdeveloped financial markets, limited access to input and output markets and inadequate information on prices or on the practice of new technologies (Liverpool & Nelson, 2009).

These institutions in rural Ethiopia provide as well agricultural as non-agricultural loans and in this paper the focus will be on the agricultural loans. The loans are usually less than 1,500 birr, about US$165, and are usually for terms of one year or less (Liverpool & Nelson, 2009). The small-scale communities in Ethiopia can make use of these microfinance programs through individual loans and group lending. Group lending and frequent meetings is common in these kind of programs and stimulates the participants to actively supervise on the responsibilities of others. Furthermore regional governments use the MFIs to promote seed and fertilizer packages, delivered on credit at below-market interest rates, as part of the extension programs initiated by the EPRDF (Liverpool & Nelson, 2009).

In this paper microfinance is seen as the most promising mean to alleviate poverty and increase agricultural productivity through providing credit for small agricultural investments. The research that was conducted provides some of the potential technologies and methods. Such as improved seeds, tied ridging and the construction of macro- and micro-catchment systems. The costs of these implementations are calculated below:

Costs of Sorghum seeds

The costs of Sorghum seeds per acre is approximately $14 (USDA, n.d.). With the cultivation of 0,25 acre of land the costs will be: 14*0.25=$3.5 per 1/4 acre

Costs of Blackeye bean seeds

For the cultivation of 1 acre of land farmers need a total of 32 lb at a price of 1 dollar per unit. The costs of the cultivation of 0.25 acre of land will therefore be: 32*1*0.25: $8 (Frate et al., 2013)

Costs of Tied ridging

The costs of tied ridging are considerably higher than those of the seeds. Only if the farmers already have a mouldboard ploughs or cultivators, the cost will be low because the ridger body and the tie-maker can be fitted easily. The costs of a new ox-drawn ridger costs $300 and a new mouldboard plough costs $30 (UNEP, 2014).

Costs of Catchment Storage Tank

The costs of construction of the earth dam are 0.02 (Habtamu & Natea (1993), Lasage et al. 2008) and analyzing the water requirements for the Sorghum plants we concluded that it would be necessary to have a 6000m3 of storage for water. This would total at the costs of: 6000*0.02= $1200.

The costs of these improved seeds and technologies with the additional costs of normal farm practices are too high for smallholder farmers which lack the financial resources. Thus, it is

important that there are MFIs who support these smallholder farmers by providing individual loans or group loans to small scale agricultural communities. This will enable the communities to buy essential technologies and products without collateral, and eventually increase agricultural productivity. Some of the implementation, such as the costs of the catchment storage tank, are exceptionally high and therefore government and MFIs should cooperate in finding a financial plan. Furthermore, the technologies mentioned above cannot be implemented at the same time, due to the total costs of all these methods and technologies. This constraint can be avoided by implementing a single method or technology every year.

18

Conclusion

Although the situation in the Southern state of Ethiopia is disturbing, there are some promising methods that could be implied to increase the productivity of the small scale agricultural communities. Our research question can be answered as following: microfinance, eventually combined with financial support from the government, is a promising financial method to apply irrigational and agricultural techniques in small scale agricultural communities in the Southern state of Ethiopia. These irrigational and agricultural techniques involve supplemental irrigation, rain harvesting techniques, tied-ridging, intercropping, water conservation techniques and the use of hybrid seeds. Improving the productivity of the small scale agricultural communities in this way, will prevent further deforestation, decrease excessive land-use and reduce poverty. Land

degradation in general might decline in this area, while the growing population has a higher food security.

As a recommendation for further research, it can be advised to integrate the anthropologist discipline to investigate the social acceptance of non-traditional techniques which replace traditional techniques. Also, the actual consequences on the ecosystems could be analyzed if a biologist approach is integrated. Furthermore, we recommend to apply these techniques in a practical research, because the actual increase of productivity as a result of these techniques could only be quantified when practical research is done.

19

Literature list

Abro, Z.A., Alemu, B.A., Hanjra, M.A. (2014). Policies for Agricultural Productivity Growth and Poverty Reduction in Rural Ethiopia. World Development Vol. 59, pp. 461–474.

AEMFI (2014). AEMFI Members By Location. Retrieved December 6, 2014, from http://www.aemfi-ethiopia.org/members-map

Aghion, B.A. & Morduch, J. (2005). The economics of Microfinance. The MIT Press Assefa, E., Bork, H.R. (2014). Deforestation and Forest Management in Southern Ethiopia: Investigations in the Chencha and Arbaminch Areas. Environmental Management 53:284–299 ATA (2014). Agricultural Transformation Agency. Retrieved November 5, 2014, from

http://ethioagp.org/partners/ata/

Bekele, M. (2001). The forest revenue system and government expenditure on forestry in Ethiopia. Forestry Policy and Planning Division, Ministry of Agriculture

Berhanu, K. & Poulton, C. (2014). The Political Economy of Agriculture Extension Policy in Ethiopia: Economic Growth and Political Control. Development Policy Review, 32, 197-213 Birhanu Biazin, Geert Sterk, Melesse Temesgen, Abdu Abdulkedir, Leo Stroosnijder, 2011. Rainwater harvesting and management in rainfed agricultural systems in sub-Saharan Africa – A review

Blum, A., Golan, G., Mayer, J., Sinmena, B., Obilana, T. (1992). Comparative productivity and drought response of semi-tropical hybrids and open-pollinated varieties of Sorghum. Journal of Agricultural Science Vol. 118, p. 29-36

Burow, G., Franks, C., Xin, Z., Burke, J. (2013). Developmental and genetic characterization of a short leaf mutant of sorghum (Sorghum bicolor L. (Moench.)). Plant Growth Regul, 71:271–280 Central Intelligence Agency (2014). The World Factbook Ethiopia. Retrieved November 3, 2014, from https://www.cia.gov/library/publications/the-world-factbook/geos/et.html

Chapin, F.S., Zavaleta, E.S., Eviners, V.T., Naylor, R.L., Vitousek, P.M., Reynolds, H.L., Hooper, D.U., Lavorel, S., Sala, O.E., Hobbie, S.E., Mack, M.C., Diaz, S. (2000). Consequences of

changing biodiversity. Nature 405, pp. 234-242.

Desta, L., 2007. Regional training workshop on efficient water use for agriculture through water harvesting, June 4th–14th, Addis Ababa, Ethiopia.

Diao, X. (2010). Economic Importance of Agriculture for Sustainable Development and Poverty Reduction: The Case Study of Ethiopia. Organization for Economic Co-operation and

Development (OECD).

Ehrlich, P.R., Ehrlich, A.H., Daily, G.C. (1993). Food security, population and environment. Population and Development Review, 19:1, 1-32

20

Effect of Agricultural Extension Program on Smallholders’ Farm Productivity: Evidence from Three Peasant Associations in the Highlands of Ethiopia

Elias, A., Nohmi, M., Yasunobu, K. Ishida, A. (2013). Effect of Agriculture Extension Program on Smallholders’ Farm Productivity: Evidence from Three Peasant Associations in the

Highlands of Ethiopia. Journal of Agriculture Science, 5, 163-181

Elser, J.J. (2012) Phosphorus: a limiting nutrient for humanity? Current Opinion in Biotechnology, 23:833–838

EPA, 2004. Environmental Protection Authority. The 3rd national report on the implementation of the UNCCD/NAP in Ethiopia, Addis Ababa, pp. 25–30.

Frate, C.A., Klonsky, K.M., De Moura, R.L. (2013). Sample Costs to Produce Blackeye Beans. University of California Cooperative Extension.

Garedew, E., Sandewall, M., Soderberg, U. Campbell, B.M. (2009). Land-Use and Land-Cover Dynamics in the Central Rift Valley of Ethiopia. Environmental Management 44:683–694 Gold, Mary. 1999. Sustainable Agriculture: Definitions and Terms.

Gold, M. (July 2009). What is Sustainable Agriculture?. United States Department of Agriculture, Alternative Farming Systems Information Center.

Grant, R.M. (2013). Contemporary Strategy Analysis, eight edition. Wiley Mesfin, T.,

Tesfahunegn, G.B., Wortmann, C.S., Nikus, O., Mamo, M. (2009). Tied-ridging and fertilizer use for sorghum production in semi-arid Ethiopia. Nutr Cycl Agroecosyst 85:87–94

IMPACT OF MICROFINANCE ON SMALLHOLDER FARM PRODUCTIVITY IN TANZANIA: THE CASE OF IRAMBA DISTRICT

Izac, A.-M.N., Swift, M.J. (1994). On agricultural sustainability and its measurement in small-scale farming in sub-Saharan Africa. Ecological Economics 11, 105-125

Kahinda et al., 2007. J.M., J. Rockstrom, A.E. Taigbenu, J. Dimes. Rainwater harvesting to enhance water productivity of rainfed agriculture in the semi-arid Zimbabwe.

Kiepe P., 1995. No runoff, no soil loss: soil and water conservation in hedgerow barrier systems. Doctoral thesis. Wageningen Agricultural University, The Netherlands, pp. 156.

Liniger et al., 2011. H.P., Studer, R.M., Hauert, C., Gurtner, M.,. Sustainable Land Management in Practice – Guidelines and Best Practices for Sub-Saharan Africa. TerrAfrica, World Overview of Conservation Approaches and Technologies (WOCAT) and Food and Agriculture Organisation

of the United Nations (FAO), pp 243.

Liverpool, L.S.O. & Nelson, A.W. (2010). Poverty Status and the Impact of Formal Credit on Technology Use and Wellbeing among Ethiopian Smallholders. World Development, 38, 541-554.

Makurira H. et al., 2007. M.L. Mul, N.F. Vyagusa, S. Uhlenbrook, H.H.G. Savenije. Evaluation of community-driven smallholder irrigation in dry land South Pare Moutains, Tanzania; a case study of Manoo micro-dam.

21

Mbwika, J.M., Odame, H. Ngugi, E.K., Marechera, G. (2011).Feasibility Study on Striga Control in Sorghum. African Agricultural Technology Foundation.

Mellor, J.W. & Dorosh, P. (2010). Agriculture and Ethiopia’sEconomic Transformation. IFPRI. Mixmarket (2014). MFI Report. Retrieved November 23, 2014, from

http://www.mixmarket.org/mfi/peace

Morduch, J. (2000). The Microfinance Schism. World Development, 28, 617-629

Nyssen et al., 2007 J. Nyssen, J. Poesen, D. Gebremichael, K. Vancampenhout, M.D’aes, G. Yihdego, G. Govers, H. Leirs, J. Moeyersons, J. Naudts, N. Haregeweyn, M. Haile, J. Deckers. Interdisciplinary on-site evaluation of stone bunds to control soil erosion on cropland in Northern Ethiopia.

Oloro V. McHugh, 2007 Tammo S. Steenhuis, Berihun Abebe Erick C.M. Performance of in situ rainwater conservation tillage techniques on dry spell mitigation and erosion control in the drought-prone North Wello zone of the Ethiopian highlands

P. Koohafkan, B.A. Stewart, 2008. Water and Cereals in Drylands.

Rajarajan, K., Ganesamurthy, K. (2011). Genetic diversity analysis of sorghum [Sorghum bicolor (L.) Moench] genotypes for droughttolerance using SSR markers. Indian journal of genetics and plant breeding, 71 (1), 17-24

Reda, F., Verkleij, J.A.C., Ersnst, W.H.O. (2004). Intercropping for the Improvement of Sorghum Yield, Soil Fertility and Striga Control in the Subsistence Agriculture Region of Tigray (Northern Ethiopia). J. Agronomy & Crop Science 191, 10—19

Reimar Carlesso, (1997).Marcia Xavier PeiterMirta Terezinha Petry Dolores Woschick. Grain Sorghum responses under water deficits on different growth stages.

Rockström et al., 2002 J. Rockström, J. Barron, P. Fox. Rainwater management for increased productivity among small-holder farmers in drought prone environments.

Rockstrom, J., 2003. Water for food and nature in drought-prone tropics: Vapor Shift in rainfed agriculture. Philos. Trans.: Biol. Sci. 358, 1997–2009.

Rockstrom, J., Folke, C., Gordon, L., Hatibu, N., Jewitt, G., de Vries, P.F. Rwehumbisa, F., Sally, H., Savenije, H., Schulze, R., 2004. A watershed approach to upgrade rainfed agriculture in water scarce regions through Water System Innovations: an integrated research initiative on water for food and rural livelihoods in balance with ecosystem functions.

Rural Science Graduates Association (2002). "In Memorium - Former Staff and Students of Rural Science at UNE". University of New England.

Scanlan, S. J. (2001). Food Availability and Access in Lesser-Industrialized Societies: A Test and Interpretation of Neo-Malthusian and Technoecological Theories. Sociological Forum, 16 (2), 231-262.

22

Simon, J.L. (1981). The Ultimate Resource. Princeton, NJ: Princeton University Press. Spaan et al., 2005. W. Spaan, A.F.S. Sikking, W.B. Hoogmoed. Vegetation barrier and tillage effects on runoff and sediment in an alley crop system on a Luvisol in Burkina Faso.

Taddese, G. (2001). Land Degradation: A Challenge to Ethiopia. Environmental Management 27, 6, 815–824

The Local Politics of Ethiopia's Green Revolution in South Wollo

Toolshero (2014). Porter’s value chain analysis. Retrieved December 4, 2014, from http://www.toolshero.com/value-chain-analysis-porter/

United Nations Environment Programme (2014). Tied-Ridging. Retrieved December 6, 2014, from http://www.unep.or.jp/ietc/publications/techpublications/techpub-8a/ridging.asp

Unites States Department of Agriculture (USDA). (n.d.). Grain Sorghum Production Costs. Retrieved December 14, 2014, from

http://www.google.nl/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCgQFjA A&url=http%3A%2F%2Fwww.ers.usda.gov%2Fdatafiles%2FCommodity_Costs_and_R eturns%2FData%2FCurrent_Costs_and_Returns_All_commodities%2Fcsorg.xls&ei=LU 2UVLmWGKTj7Qa854HQDg&usg=AFQjCNEivUUCsjScKXuzixufwmBH93u91g&sig 2=jJMbQXAIR3jSLM4eepSZ_A&bvm=bv.82001339,d.ZGU

Van Halsema et al., 2011. G.E. Van Halsema, B.K. Lencha, M. Assefa, H. Hengsdijk, J. Wesseler. Performance assessment of smallholder irrigation in the Central Rift Valley of Ethiopia.

Viste, E., Korecha, D., Sorteberg, A. (2013). Recent drought and precipitation tendencies in Ethiopia. Theor Appl Climatol, 112:535–551

Zougmore, R., Mando, A., Ringersma, J., Stroosnijder, L., 2003b. Effect of combined water and nutrient management on runoff and sorghum yield in semiarid Burkina Faso. Soil Use Manage. 19, 257–264.