Abstract only

Maize is the main annual crop in Honduras, both in terms of its share of total cropped area and its role in direct human consumption. Approximately 25% of a1l arable land is planted with maize and Hondurans' per capita maize consumption is among the highest in the world. Yet despite the potential yield gains from the adoption of improved varieties and the fact that seed prices (of hybrids) are relatively low compared to other Latin American countries, the level of adoption of improved varieties of maize in Honduras is below 20%. This paper summarizes research into the factors that contribute to these low levels of adoption of improved maize varieties in Honduras. The literature on adoption of agricultural innovations is vast. Commonly identified constraints to rapid adoption of new agricultural technologies include credit rationing, information asymmetries and/ or differential access to information resources; risk aversion; sma1l farm size; human capital deficiencies; disruptions in markets for labor and complementary inputs; and poor infrastructure. The low levels of adoption of improved maize varieties in Honduras are commonly ascribed to three factors: (a) inappropriateness of improved varieties for the specific environments or needs of farmers; (b ) incomplete or non-existent markets for certain varieties due to high transactions costs; and (c) inadequate transmission of information on new varieties to farmers. Our empirical work is based on an agricultural household model that explicitly incorporates variety characteristics and transaction costs into the household's optimization process. We considered a multitude of production characteristics (e.g., yield, yield stability, duration, and plant height), and consumption characteristics (including taste, storability, and husk cover thickness) that are valued by farmers. Distance from markets, road quality, vehicle ownership, and availability of marketing agents were used as proxies for household-specific transaction costs. We implemented our model, using data collected in a survey of 167 farmers located across 34 villages, in two distinctly different agro-ecological zones. In one of these zones, maize farming is highly commercialized, average farm sizes are comparatively large, and hybrids are planted by 60% of farmers. Near- subsistence farm households with smaller landholdings and much lower levels of high yielding varieties (HYV) adoption dominate the other zone. Non-parametric tests indicate that farmers perceive significant differences among varieties. In general, improved varieties dominate in terms of production characteristics but are regarded as inferior with regard to consumption characteristics in both production zones. Zone-specific adoption equations confirm that in both areas production characteristics variables are jointly significant factors that influence variety choice, while consumption characteristics appear to be less important. In addition, transactions costs are found to have a significant positive impact on HYV adoption in the commercialized zone. No detectable effect of transactions costs on adoption is found in the near- subsistence zone. Instead, the dominant element conditioning adoption appears to have been whether or not farmers received free HYV seeds in the aftermath of Hurricane Mitch, a result indicating that information deficits may be an important limiting factor to adoption there.

Socioeconomics Program

English

0309|R01CIMPU|AGRIS 0301|AL-Economics Program

Juan Carlos Mendieta

CIMMYT Staff Publications Collection