Labor Constraints in the Sub-Saharan Agricultural Market

This paper draws upon development economics theory, demographic projections, and empirical evidence to consider the likely consequences of the HIV/AIDS pandemic for the agricultural sector of the hardest-hit countries of Eastern and Southern Africa. We identify four processes that have been underemphasized in previous analysis: 1) the momentum of long-term population growth rates; 2) substantial underemployment in these countries’ informal sectors; 3) steady declines in land-to-person ratios in the smallholder farming sectors; and 4) effects of food and input marketing reforms on shifts in cropping patterns. The paper concludes that the conventional wisdom encouraging prioritisation of labour-saving technology or crops has been over-generalised, although labour-saving agricultural technologies may be appropriate for certain types of households and regions. The most effective means for agricultural policy to respond to HIV/AIDS will entail stepping up support for agricultural science and technology development, extension systems, and input and crop market development to improve the agricultural sector’s potential to raise living standards in highly affected rural communities. Agricultural productivity growth may also help to overcome poverty related factors that may interact with the disease to magnify its effects. Subject Areas: Aids, Productivity 2. Yamano, T. & Jayne, T.S. (2004). Measuring the Impacts of Working Age Adult Mortality on Small Scale Farm Households in Kenya. World Development, Vol. 32, No. 1, pp. 91-119. (AIDS, productivity) 6 A search was done for labor constraints and civil conflict through these mediums and, while there is considerable literature on the impacts of conflict on agriculture in SSA, it is primarily focused on the destruction of fertile land and equipment. Thus, it was not included in this review. Page 11 Times Cited: 105 Abstract: Using a two-year panel of 1,422 Kenyan households surveyed in 1997 and 2000, we measure how working-age adult mortality affects rural households’ size and composition, crop production, asset levels, and off-farm income. We also use adult mortality rates from available data on an HIV-negative sample to predict the proportion of deaths observed during 1997–2000 due to AIDS. Difference-in-differences estimations indicate that the effects of adult mortality are highly sensitive to the gender and position of the deceased family member in the household and to the household’s initial asset levels. Results indicate that relatively poor households do not recover quickly from head-of-household adult mortality; effects on crop and nonfarm incomes do not decay at least over the three-year survey interval. Using a two-year panel of 1,422 Kenyan households surveyed in 1997 and 2000, we measure how working-age adult mortality affects rural households’ size and composition, crop production, asset levels, and off-farm income. We also use adult mortality rates from available data on an HIV-negative sample to predict the proportion of deaths observed during 1997–2000 due to AIDS. Difference-in-differences estimations indicate that the effects of adult mortality are highly sensitive to the gender and position of the deceased family member in the household and to the household’s initial asset levels. Results indicate that relatively poor households do not recover quickly from head-of-household adult mortality; effects on crop and nonfarm incomes do not decay at least over the three-year survey interval. Subject Area: Aids, Productivity Subtopic 2: Seasonal Labor Constraints 1. Speranza, C.I., Kiteme, B., & Wiesmann, U. (2005). Droughts and Famines: the underlying factors and causal links among agro-pastoral households in semi-arid Makueni district, Kenya. Global Environmental Change: 18, pp. 220-233. (productivity, intrahousehold, farm vs. off farm) Times Cited: 3 Abstract: Famines are often linked to drought in semi-arid areas of Sub-Saharan Africa where not only pastoralists, but also increasingly agro-pastoralists are affected. This study addresses the interplay between drought and famine in the rural semi-arid areas of Makueni district, Kenya, by examining whether, and how crop production conditions and agro-pastoral strategies predispose smallholder households to drought-triggered food insecurity. If this hypothesis holds, then approaches to deal with drought and famine have to target factors causing household food insecurity during non-drought periods. Data from a longitudinal survey of 127 households, interviews, workshops, and daily rainfall records (1961–2003) were analyzed using quantitative and qualitative methods. This integrated approach confirms the above hypothesis and reveals that factors other than rainfall, like asset and labor constraints, inadequate policy enforcement, as well as the povertydriven inability to adopt risk-averse production systems play a key role. When linking these factors to the high rainfall variability, farmer-relevant definitions and forecasts of drought have to be applied. Subject Areas: Seasonal Labor Constraints, Productivity 2. Alwang, J. & Siegel, P.B. (1999). Labor Shortages on Small Landholdings in Malawi: Implication for Policy Reforms. World Development, Vol. 27, Iss. 8, pp. 1461-1475. (farm vs. not farm, productivity, seasonal constraints, also listed in supply) Page 12 Times Cited: 44 Abstract: Seasonally-specific cultivation patterns of farm crop enterprises often create periodic labor shortages. New technologies that require labor inputs during such labor-scarce seasons are less likely to be adopted. Financial ex ante assessments of technology alternatives, however, neglect the implications of seasonal labor shortages. Standard returns to labor estimates assume that the value of labor to farmers is constant despite temporary increases in demand. This paper develops an alternative measure, returns to opportunity-costed labor (RTOCL), which discerns the seasonallychanging costs of labor. RTOCL more accurately reflects farmer decision criteria and serves as a useful measure in ex ante analysis of technology interventions. A case study of a bush fallow agricultural system in the Peruvian Amazon illustrates how seasonal labor shortages lead to farm management tradeoffs that affect the prospects of technology adoption. Two improvements of a new upland rice variety are contrasted: higher yield versus early maturity. Empirical results of an agro-economic mathematical model reveal that the early maturity characteristic enables rice to become more complementary to peak-season labor demands of the agricultural system. This early maturity characteristic permits farmers to cultivate larger areas and reap greater financial benefits than a variety with a high yield characteristic. Model results support the need to address heterogeneous seasonal labor demands when developing and disseminating agricultural technologies intended to benefit resource poor farmers. Seasonally-specific cultivation patterns of farm crop enterprises often create periodic labor shortages. New technologies that require labor inputs during such labor-scarce seasons are less likely to be adopted. Financial ex ante assessments of technology alternatives, however, neglect the implications of seasonal labor shortages. Standard returns to labor estimates assume that the value of labor to farmers is constant despite temporary increases in demand. This paper develops an alternative measure, returns to opportunity-costed labor (RTOCL), which discerns the seasonallychanging costs of labor. RTOCL more accurately reflects farmer decision criteria and serves as a useful measure in ex ante analysis of technology interventions. A case study of a bush fallow agricultural system in the Peruvian Amazon illustrates how seasonal labor shortages lead to farm management tradeoffs that affect the prospects of technology adoption. Two improvements of a new upland rice variety are contrasted: higher yield versus early maturity. Empirical results of an agro-economic mathematical model reveal that the early maturity characteristic enables rice to become more complementary to peak-season labor demands of the agricultural system. This early maturity characteristic permits farmers to cultivate larger areas and reap greater financial benefits than a variety with a high yield characteristic. Model results support the need to address heterogeneous seasonal labor demands when developing and disseminating agricultural technologies intended to benefit resource poor farmers. Areas Covered: Seasonal Labor Constraints, Productivity Subtopic 3: Urban Migration and Off Farm Income 1. Ponte, S. (2000). From Social Negotiation to Contract Shifting: Shifting Strategies of Farm Labor Recruitment in Tanzania Under Market Liberalization. World Development, Vol. 28. No. 6. Pp. 1017-1030.