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B7‘7 ,’r{r' ,. .1“ s? ‘ ,7 . : . zwr‘b'V-vu .v '9 1-" 1 »~— “WWIIMiflixmmum“ ‘,-_ .H ., 3 1293 3106513 [.3390 r' 1 war Cw—I’.d.uw—w: g-bw“: I‘ ,9,‘ —91, -I I mans“ - This is to certify that the thesis entitled A COMPARATIVE ANALYSIS OF ALTERNATIVE IRRIGATION SCHEMES AND THE OBJECTIVE OF FOOD SECURITY: THE CASE OF THE FLEUVE REGION IN SENEGAL presented by Fadel Ndiame has been accepted towards fulfillment of the requirements for Master's degree in Agricultural Economics M49074 Date March 22, 1985 0-7639 MS U is an Affirmative Action/Equal Opportunity Institution MSU RETURNING MATERIALS: Place in book drop to LJBRARJES remove this checkout from .—::_. your record. FINES W'i'l'l be charged if book is returned after the date stamped below. :77 , gm: fir tubs—eye] ] fiazn / 72 , 1 NOV 0 4 2002 A COMPARATIVE ANALYSIS OF ALTERNATIVE IRRIGATION SCHEMES AND THE OBJECTIVE OF FOOD SECURITY: THE CASE OF THE FLEUVE REGION IN SENEGAL By Fadel Ndiame A Thesis Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE Department of Agricultural Economics 1985 ABSTRACT A COMPARATIVE ANALYSIS OF ALTERNATIVE IRRIGATION SCHEMES AND THE OBJECTIVE OF FOOD SECURITY: THE CASE OF THE FLEUVE REGION IN SENEGAL By Fadel Ndiame The large and small irrigation perimeters developed for rice production in Senegal's Fleuve 'region are evaluated for their contribution to the country's objective of food security. An index of food security, based on the per capital availability of cereals in producing households, is used to compare the two schemes. An econometric analysis is also developed to approximate the quantitative relationships involved in paddy rice production. The data used here were collected in a Policy-oriented farm Because of the larger farm per capita availability of cereals survey. plots in large perimeters, is more important there than in small perimeters, despite higher yields in the latter. The estimated production equations reveal the impact of inputs and other localized factors on paddy production. The findings lead to economical strategies of food recommendations for more security based on the simultaneous development of irrigation with the rainfed and flood-recession agriculture. TABLE OF CONTENTS List of Tables . . . . . . . . . . . . . List Of Figures. 0 O O O O O O O O O O 0 Chapter 1 THE RESEARCH OBJECTIVES AND COMPONENTS A. B. C. D. E. F. A BRIEF HISTORY OF IRRIGATION IN THE Introduction . . . . . . . . Concepts of Food Security and Their to Our Research Problem . . . . Objectives of the Study . . . . The Conceptual Framework. . . . Data Requirement and Collection 1. Objectives of ”Politique Agricole“ 2. Strategy of Data Collection. Organization of the Study . . . FLEUVE REGION. 0 O I O O O O C O O A. The Experiences with Irrigation in the B. The Recent Experiences with Irrigation in Pre- Independence Era. . . the Fleuve Region . . . . . . . 19 19 22 23 1. The Experience with Large Perimeters . 2. The Recent History of the Village Irrigation Systems . . . . . . . . . . 3 Structure of Productions and Cereals Ava11ab11ity O O O O O O O 0 O O O O O I O O A. Output, Transactions and Cereals B. Availability. . . . . . . . . . 1. Production and Yields. . . . 2. Transactions . . 3. Indices of Cereal Availability Areas Cultivated. . . . C. Power Source and Level of Technology. ii 35 35 44 47 49 Chapter D. 1. Human Labor. 0 O O O O O O O O O O O 2. Animal Traction. . . . . . . . . . . 3. Tractor Mechanization. . . . . . . . The Other Inputs. . . . . . . . . . . . 1. SeEds. O O O 0 O O O 0 O O O O O O O 1.1 Origins of Seeds . . . 1.2 Quantity and Quality of Seeds. . 2. Ferti11zers. O O O O O O O O O O O O 4 STRUCTURE OF PRODUCTION AND CEREALS AVAILABILITY IN THE SMALL PERIMETERS . . . A. B. C. Cereals Availability, Productions, Transactions. . . . . . . . . . . . . . 1. Productions and Yields . . . . . . . 2. Transactions . . . . . . . . . . . . 2.1 Sales and Purchases of Cereals . 2.2 Gifts and Tithe. . . . . . . . . 2.3 Debt Reimbursements. . . . . . . 3. Indices of Cereal Availability . . . Areas Cultivated. . . . . . . . . . . . other Inputs. 0 O O O O O O O O 0 O O .. 1. Labor and Animal Traction. . . . . . 2. Seeds and Fertilizers. . . . . . . . 2.1 Origins of Seeds . . . . . . . . 2.2 Technical Factors. . . . . . . . 5 THE DETERMINANTS OF RICE PRODUCTION IN THE FLEUVE REGION. 0 O O O O O O O O O O O A. The Physical and Technical Determinants 1. Physical Factors . . . . . . . . . . 2. Technical Factors. . . . . . . . . . The Economic and Policy Factors . . . . Some Sociological and Institutional Determinants. . . . . . . . . . . . . . Elements of Methodology . . . . . . . . iii 60 6O 60 66 66 68 70 72 75 77 77 77 77 79 84 86 86 86 90 96 100 Chapter Page 6 THE ECONOMETRIC MODEL. . . . . . . . . . . . . . 102 A. Introduction. . . . . . . . . . . . . . . . . 102 8. Presentation of the Models. . . . . . . . . . 104 1. The Economic Model . . . . . . . . . . . . 104 2. The Statistical Model. . . . . . . . . . . 109 C. Analysis of the Empirical Results . . . . . . 112 1. Analysis of the Estimated Parameters . . . 112 2. some Examples. 0 I O O O O O O O O O 0 O O 121 0. Implications of the Econometric Model . . . . 128 E. Limitations of the Study. . . . . . . . . . . 131 7 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS . . . . 134 A. Introduction. . . . . . . . . . . . . . . . . 134 B. Summary and Conclusions . . . . . . . . . . . 135 c. Recommendations 0 O O O O O O 0 O O O O O I O 139 1. Policy Recommendations . . . . . . . . . . 139 2. Needed Research. . . . . . . . . . . . . . 145 APPENDICES. O O O O O O O O O O O O O O O O O O O O O O 148 Appendix A Questionnaire. . . . . . . . . . . . 148 Appendix B Codes of Zones, Perimeters and Producers Groups . . . . . . . . . . 152 Appendix C Presentation of the Econometric Analysis Results . . . . . . . . . . 155 C.1 Summary Table of the Different Area and Yield Equations . . . . 155 C.2 Presentation of the Most Satis- factory Area and Yield Equation. 158 C.3 Transformation Procedures of the Econometric Analysis' Results. . . . . . . . . . . . . 151 SELECTED BIBLIOGRAPHY o o o o o o o o o o o o o o o o o 166 LIST OF TABLES Table Page 1 Evolution of Selected Indicators of SAED's I 28 Performance from 1980-1981 to 1982-1983. 2 Average Production and Yields in Cereals-Growing 36 Households in the Large Perimeters by Zone and by Crop. 3 The Transactions of Cereals Per Household in Large 43 Perimeters by Crap and by Zone (1981/82). 4 Indices of Cereal Availability in Producing 46 Households by Crap and by Zone (In Millet Equivalents). 5 Distribution of Areas Cultivated Per Producing 48 Household by Zone and by Crop (In Hectares). 6 Average Number of People Per Household Growing a 50 Particular Crop by Zone 7 Structure of the Debt in Large Perimeters: Percent 52 of Cases Hhere Debts were Incurred for Various Activities by Crop and by Zone. 8 Percentage of Farmers who Received Their Seeds 54 From Various Sources by Crap and by Zone. 9 Seeding Rates by Crop and by Zone (In Kilograms 56 Per Hectare). 10 Fertilizers Available Per Household and Rate of 57 Fertilization by Crop and by Zone. 11 Average Production and Yields Achieved in Cereals- 61 Growing Households in the Small Perimeters by Zone and by Crop. 12 Average Sales of Cereals Per Household to Various 67 Buyers in the Small Perimeters by Crap and by Zone. H m w 0' 14 15 16 17 18 19 20 21 22 Average Quantities Provided as Gifts Per Households (In Kilograms) and Percentage of Households who Provided the Tithe (In Parentheses) The Structure of Debts in Irrigated Perimeters A. A Percentage of Cases in Which Debts were Incurred for Various Activities of the Small Perimeters. 8. Modes of Reimbursement: Percentage of Cases in Which Debts were Reimbursed in Cash or in Kind, by Zone. C. Average Quantities of Rice and Amounts Reimbursed Per Household and by Zone. Indices of Cereals Availability in Producing Households Operating in Small Perimeters, by Crop and by Zone. Distribution of Areas Cultivated Per Household on the Small Perimeters by Zone and by Crap (In Hectare). Average Numbers of Pe0ple Living in Cereals- Growing Households of the Small Perimeters of the Zone. Origins of the Seeds in the Small Perimeters. Percentage of Farmers Hho Received Their Seeds From Various Sources by Crap and by Zone. Seeding and Fertilization Rates in Small Perimeters, by Crop and by Zone (In Kilograms per Hectare). Empirical Estimates of the Regression's Coefficients. Private Profitability of Fertilizers at the Margin In Three Selected Producer Groups During Three Seasons. Results of the Different Estimation Procedures. vi Page 69 71 71 71 73 76 78 80 81 113 126 156 Figure m LIST OF ILLUSTRATIONS Sampling Design Used in the Fleuve Region Distribution of Paddy Production in the Delta and Middle Valley Zones. Distribution of the Yield of Paddy Rice in the Delta and Middle Valley Zones. Distribution of Paddy Production in the Aere Lao and Matam Zones. Distribution of the Yield of Paddy Rice in the Delta and Middle Valley Zones. Presentation of the Different Zones of the Study. viii Page 17 39 4O 64 65 14 CHAPTER ONE THE RESEARCH OBJECTIVES AND COMPONENTS A. Introduction The agricultural sector plays an important role in the Senegalese economy, as it employs an important part of the country's population and makes a significant contribution to its gross domestic product. A major characteristic of Senegalese agriculture is its dependence on natural factors which remain the main determinants of production. In the 1960's, the Senegalese authorities pursued a strategy initiated by the French colonists and based on the production of peanuts for exports. Meanwhile, the foreign exchange earnings allowed the country to import rice. Despite the policies of diversification undertaken during the last two decades, peanuts and products based on them remain dominant in the Senegalese economy. In the 1970's, the combination of drought conditions, unfavorable deveIOpments in the international economic envirbnment and inapprOpriate domestic policies resulted in a profound food crisis, which is still being felt by the country. The growing cereals deficits represent the most obvious manifestation of Senegal's inability to feed itself. To tackle the problem, the Senegalese authorities _r_._,....—--— ..._ have setflgpfighflambitious program to_redefineg the components of 19 129!_ agricultural policy aimed at achieving food 2 security. Indeed, the VIth plan provides the objectives of the agricultural policy and expresses the need for more investigations of important policy and institutional issues. Two important objectives mentioned by the plan are the improvement of the country's food self-sufficiency and the promotion and development of irrigation systems able to assure greater food security. In this respect, the development and exploitation of the Senegal River resources constitute a major component of a strategy to lessen the impacts of adverse climatic conditions and to promote a modern agro-industry. In fact, such a program 15' being carried out both at the national and regional levels through the operations of SAED1 and 0.M.V.S.2 SAED was created in 1965 and was assigned three main functions: 1. To develop and manage the state-owned lands to allow their profitable exploitation. 2. To develop irrigated rice by assisting and providing extension services to groups of farmers organized in cooperatives. 3. To organize the processing and marketing of harvested output. During the years, SAED has gone through many changes both in its status and role. The most important ones were 1Societe d'Amenagement et d'Exploitation des Terres du Delta et des Vallees du Fleuve Senegal et du Faleme. 2The “Organisation Pour la Mise en Valeur du Fleuve SenegalI was created on March 11, 1972 and includes Mali, Mauritania and Senegal. 3 brought about by the institutional reforms that took place with the 1984 New Agricultural Policy (NAP). Basically, the NAP reiterated the Senegalese government's decision to sharply reduce the state's intervention in the rural economy and to transfer more responsibilities to farmer organi- zations and the private sector. This implied an important reduction in the size and responsibilities of the develop- ment agencies. For SAED, the measures introduced by the NAP created additional constraints on its irrigation programs. At the regional level, the OMVS countries attempt to join their efforts to struggle against hunger, desertifi- cation and to exploit the resources of the common river. Four Specific development objectives were mandated at OMVS: 1. To increase and secure the income of the river basin's population (1,612,000 people, representing 16% of the population of the three countries involved). 2. To guarantee the ecological equilibrium of the zone. This reflects the concern that the rocess of production is likely to have external“ effects detrimental to the physical environment and calls for a rational system of exploitation. 3. To alleviate the dependency of the region's economies on weather-related factors. For this purpose, the OMVS countries decided to build the Diama and Manantalie dams which will allow them, among other things, to regulate the flow of the Senegal River. 4. To accelerate economic development through an intensive regional cooperation involving the harmonization of domestic policies and, ultimately, the complete integration of the involved economies. 4 The scarcity of local capital and the scope of the different programs require an efficient allocation of existing resources. Accordingly, the question of the comparative performance of different irrigation schemes is especially important. But, to the extent that the various policies pursued by the ‘national and regional institutions attempt to achieve ”food security“, it is relevant to analyze the concept and to examine its meanings in the Senegalese context. 8. Concepts of Food Security and Their Relevance to Our Research Problem The issue of food security has been associated in the literature with various elements. Some authors emphasize the need to stabilize food availability, mainly via the minimization of the variance of quantities and prices through time and space. Other authors analyze the question from the viewpoint of particular participants in the food system and focus on questions ranging from the needs to ensure rural self-sufficiency, and/or guarantee cheap food to urban consumers to the demands for the political liberation of peasants (Lele et al., 1984; de Janvry, 1981; Dumont, 1982). Finally, other authors analyze food security in a macro-economic context, insisting on the requirements to link policies on agricultural policies, prices and employment (Mellor, 1984; Timmer et al., 1983). 5 All those aspects are important and this makes an analysis of “food security“ extremely complex. The views of different authors, complementary or conflicting, are closely associated with their conception of underdevelopment and their vision about the process of economic development.3 It is, however, very important to keep in mind that the analytical process itself involves sets of choices that cannot be made exclusively on technical grounds. The choices are relative to elements ranging from the definition of the research problem, the selection of analytical categories, and techniques to the choice of relevant performance variables. Under conditions of uncertainty and when interests conflict, those choices determine whose interests will count (Schmid, 1984). Furthermore, because the choices made in the analytical process can affect the way alternative projects compare, they can be systematically based on the objectives of the macro-economic policies. In this study, we conceive food security as Senegal's ability to assure adequate per capita food supplies to the different segments of the country's population at any point in time. Thus, our conception of food security requires that each Senegalese has access to the adequate quantity and quality of food during his lifetime. For the sake of 3See Eicher and Staatz (1984) for an overview of the evolution of ideas on agricultural development. 6 simplicity and because of resource limitations, we shall limit our research problem to the analysis of cereals productions and transactions in the Fleuve region and their relationships to food security. We will, however, keep the other related issues in mind. Several points are important in the analysis of cereal production in Senegal. The first point relates to the crop which is produced. The importance of this point stems from the dichotomy existing between the national demand ofcereal and the country's current production potential. Indeed, the national demand for cereal, for historical, economic and psychological reasons, tends to favor imported rice against the more easily produced millet and sorghum. In fact, under current technologies and cost structures, the opportunity cost of producing rice in Senegal is hypothesized to be high, both with respect to the cost of importing it and the cost of producing millet and sorghum (Dumont, 1982. p. 36). Yet, the production of irrigated rice in large perimeters, conceived to generate enough surplus to meet the country's needs, represents a major component of Senegal's import substitution strategy (Founou, 1980). On the other hand, rice production in village irrigated systems allows peasants to secure an important source of food, mainly during years of droughts. The second related point deals with the question of irrigated versus rainfed agriculture. The promotion of irrigated agriculture constitutes a major step in mastering 7 water and helps to eliminate the disastrous consequences of drought. As such, irrigation, by eliminating weather— determined variations in production, significantly contributes to food security. However, it is important to pay attention to the costs of irrigation, mainly in the large perimeters. The scarcity of local resources and the existence of cheaper sources of water create the need for an awareness of the Opportunity costs of irrigation. The last point deals with the relationships between cereals production and several types of inputs. The elements that are relevant in explaining the level of production of each cereal and its' distribution through time and space include the physical and climatic environment, the quantities and distribution of' inputs, the production techniques, the structure of relative prices and the existence of market outlets for a given crop. In addition, organizational factors, embodied in the type of perimeter involved, are thought to influence the level of yield and the quantities produced in each cereal. In sum, an analysis of cereal production and food security in Senegal should pay attention to three important issues. First, the current production patterns reflect producers' perceptions of their food security. In addition, the distribution of production among several crops and the structure of the national demand of cereals reflect the 8 value that participants of the food system place on the different cereals. Thus, the various cereal promotion policies should account for the mix of production which is the most consistent with the different participants' preferences. Second, irrigation constitutes only one component of a more global agricultural system including the traditional rainfed and flood-recession agriculture, animal husbandry and other off-farm activities. The various components of the system are related by complex and interdependent relationships. Therefore, any assessment of irrigation in the Fleuve region should incorporate those relationships. The third issue deals with the analysis of the relationships between "food security" and "food self- sufficiency" in the context of Senegal. Such analysis would determine, given the production potential and the structure of national and international prices, the appropriate mix of local production, imports and food aids that contributes most effectively to food security. In the next section, we shall define the general and specific objectives of this study. C. Objectives of the Study Our study has two general objectives: To understand the relationships between alternative irrigation schemes and cereal production in the Fleuve region. To discover how the policy variables involved in the cereal sector can be influenced to achieve food security in Senegal. More Specific objectives are set to help meet the general ones: (1) The first specific objective is to understand the evolution of the Fleuve'irrigation schemes and to analyze their influence on current and future perimeters. (2) The second specific objective is to present the distribution by type of perimeter of cereal production in the Fleuve region and to test for the existence of significant differences in performance variables across perimeters. Our performance variables are the quantities of cereals available per capita in producing households. The yields and production of each crop and the transactions that take place are major determinants of cereal availability. (3) The third specific objective is to investigate the relationships between the variations of the performance in paddy rice production with the 10 changes in selected characteristics of the production units: the variations in input availability, the type of perimeter, the location along the river and other organizational factors operating at the producer group level. Such an analysis is important because of the high value attached to this crop by Senegalese government officials and the need to assess the effectiveness of the resources allocated to its production. (4) A final specific objective is to discover how the design and organization of the irrigated perimeters can be influenced to achieve the objectives of the Senegalese agricultural policies. 0. The Conceptual Framework Our analysis will involve several steps using various analytical techniques. The first step will provide a brief presentation of the origin, evolution and current state of irrigation in the Fleuve region. The second step of the analysis will describe the performances of selected perimeters during the 1981/82 season. The tabular presentation of the performance variables will allow us to compare the selected perimeters by crop cultivated. The third step involves the use of standard multiple regression analysis to approximate the relationships involved in paddy rice production. 11 The descriptive analysis of the second step involved comparisons of average figures computed for perimeters having certain defined characteristics. But a large variability is hypothesized to exist within perimeters of a given type. Such variance is related to factors such as input availability, differences in location, and differences in production techniques among perimeters of the same size. Furthermore, important organizational factors are believed to operate at the producer group level where important decisions relative to the management of the perimeters are taken. The information related to those elements is "lost“ because of the aggregation at the perimeter level. In contrast, by using the households as basic unit of analysis, we can retain the information related to the variations internal to perimeters. To do this, dummy variables will be used to represent such qualitative elements as type of perimeter, location along the river and the organizational factors operating in the producer group. To the extent that these dummy variables are significantly different from zero, the coefficients will allow us to isolate the specific effects of the qualitative factors which influence paddy rice production in the Fleuve region. E. Data Requirements and Collection The data used in this study were collected in 1983 for a study of agricultural policy in Senegal. The researcher 12 participated in the conception and execution of the data collection in the Fleuve region. In order to see how this data can be used in our current study, we shall briefly present the objectives and the data collection strategy of the 1982 “Politique Agricole" study. 1. Objectives of “Politique Agricole“ The general objective of “Politique Agricole" was to describe the structure of cereal production in Senegal. More specifically, three types of information were needed: (a) The factors of production available and utilized during the reference year 1981/1982. (b) The levels of production achieved and their relationships with the factors of production. I (c) The transactions of cereals and, more Specifically, the movements of products in different areas of the country during the year. Policy makers wanted this information in order to understand relationships between inputs and output on one hand, output and transactions on the other hand. The knowledge of these relationships could help guide policies to promote cereal production in Senegal. The researcher was in charge of organizing the data collection in the Fleuve region. The strategy used is explained in the next section. 13 2. Strategy of data collection. The data were collected in a survey using stratified sampling methods. For this purpose, it was necessary to classify the Fleuve region in strata that were homogenous with respect to relevant agro-economic criteria. Such a scheme allows one, in theory, to obtain reliable information from randomly selected subsamples that can be used to make inferences about the larger population. In the case of the Fleuve region, however, the administrative limits could not be criteria of classification because they do not provide homogenous strata. Indeed, all along the river, from Saint Louis to Bakel, there is a set of physical, demographic, administrative and organizational variables whose simultaneous variations provide a noticeable Specificity to any given location. With the collaboration of SAED, the Fleuve region was classified according to three criteria: (a) Location along the Senegal river. (b) Type of perimeters involved: large or small perimeters. (c) Type of agriculture: irrigated or rainfed. The combination of these criteria allowed us to establish the following stratificationz4 4See the situation of the zones on the map. 14 mwmfi .xmmou ESL; umuaou< "mucaom 552.com 425...... a $355.. 3:3 as; «omme ...... ............ ..o. £4249 .- o. ........... ....... no 3...: no 339: .. a 2:3 .5 -Pcma Pmem on; mem< co mcauas »a__a> a_uuwz au_ao nwcma _Pmsm 6:» ho mcmpms on“ Co mcmpms -Pcma mace; u_cma omen; mac... .pm ..... ..... I... ..... ooooo ..... Oo- mz «145 1.40— cmdzu auzum mzu mo mmcoN acmcmumpo as» we copumucommca 15 1. The large perimeters of the Delta. 2. The large perimeters of the Middle Valley. 3. The small perimeters of the Aere Lao zone. 4. The small perimeters of the Matam zone. 5. The zone of the “traditional“ agriculture, which is a fictive zone corresponding to the rainfed agriculture undertaken in all the areas of the sample. In each zone, a sample of three perimeters was selected and five 'groupements de producteurs“ were randomly chosen from each perimeter.5 Finally, a sample of twenty members of each “groupement de producteurs” was randomly selected and surveyed.6 The “groupements” constitute the major farmer groups which deal with SAED about the operations of each perimeter. A groupement is generally composed of people of the same village and ethnic group. A farmer who was selected to participate in the study was interviewed about his own fields of cereals, whether irrigated or not. Then members of his household were also surveyed about their fields. Separate records were kept for each crop grown in a different field by each member of the 5A list of the perimeters and ”groupements" selected is provided in Appendix B. 6In some 'groupements“ more than 20 members were interviewed and in others fewer members were surveyed. 16 household. During the data analysis, the information relative to different fields of the same crop was aggregated at the household level. As a result, the most basic case is represented by a given crap grown in a given household. Every farmer was interviewed about his resources allocated to cereal production, the output achieved and the ways in which it was used. A capy of the questionnaire used is attached in Appendix A. The diagram of the sampling design in the Fleuve region is presented in Figure 1. F. Organization of the Study The remaining chapters of this study are organized as follows: Chapter Two provides a brief presentation of the history of irrigation in the Fleuve region and summarizes the major characteristics of the currently irrigated perimeters. ' Chapters Three and Four deal with the description of the major results achieved _in selected large and small perimeters during the 1981/82 season. Chapter Five presents the determinants of rice production in the Fleuve region. The elements analyzed include physical and technical factors, economic and policy variables and some institutional and sociological determinants of production. Chapter Six presents an econometric model that approximates the quantitative relationships involved in paddy rice production. Area and yield equations were estimated and they allowed us to derive a production equation relating Nozm v m x — m 4 a m m 21.x a o c v m 3 m z m c m t c c c n d m c x N: :ccmmgc.am m.c=sm a. muse—Lac www.ca cum: ‘: nzm m.~:- B m 4 Z o§ N <5 l-O gde :3 (3 E V m\' 4I [ N\\\\\\\\\\\\\\V 10+ 9—10 PRODUCTION (IN TONS) .\\\\\\\‘ «Raw ‘ ’ \\\\\\\\\\\\\\‘ \\\\\\\\\\\\\\V \\\\\\\\\\\\\\\\\\\V N\\\\\\\\\\\\V k\\\\\\\\\\\\\\\\\\‘ \\\\\\\\\\‘\\\\V \\\\\\\\\\\\\\\\\\\\\\\\‘ t\\\\\\\\\\\\\\\\\\\\\\\\\\\\‘ 1 4o :54 30*) 25“r r In 0 20~r 5-P- 10-1' ’ SUTOHESDOH 30 39V1N3083d 7-8 ——.- .——._——-u “r... _- . -_.._ . _. ._ -- —— - _--v"-— -. Figure 3 4O Isi‘.‘l§1"l '1 1' 0.. . 'h 1" UZON >muj<> UJODE‘ I § OZMOMI. MZON (POND It‘ll-I‘l'll'.v I ‘ '1 9,1Il‘u1" .10.. 1" It | . Amm HEDGE; OZ< <15m0 MT; 7: MOE \rODQQou neuucaum mth NN em a c mg em a a swan: momazou o c a c o o o c on; mgo< o~ cc o c c" we a c Ewan: o~_~x o c c c o o c c on; mgm< ~. _ o o as. N c o scum: asgmccm c c c o c c o c on; ocu< g : c c :8. _ o c .33: “6...: _ "a c c mc.N ~_ c o and mcm< e mm c o N n ma“ cm scan: 66.x N m.o_ cc. m. N m v.~ m and acm< :6.» ram c. Nco.uo.>ma a; c. Ncc.aa.>oo ax cp Nco—uu_>oo lax c’ mucoN was mmocu nuance; mmpu.u=~=o eunucoum ma_u_a:o:c uguucaum moFHNucazc chateaum mo.u—u:azo Lain mma~p<¢m¢ccu mhzmc< mk<>~¢m ou=m acoN he can acgu an acouoapcom __oam ozu c. mechaa mzopca> a» u_ogum:o= can mpaocuu No mopam ouaem>< Nu upon» I 68 zone. There were almost no sales of millet and sorghum. These findings are consistent with the fact that production is primarily oriented to subsistence needs. The small quantities of rice produced by irrigation were almost exclusively home-consumed in producing households. 0n the other hand, purchases of cereals took place. The quantities involved are presented in Table 15. Relatively large quantities of rice and millet were purchased by households Operating in the small perimeters of the Aere Lao zone. In addition to sales, gifts and tithes were provided by farmers. He shall examine them next. 2.2 Gifts and Tithes Table 13 presents the quantities provided as gifts by cereal-growing households in the four zones. The percentage of growers who provided the religiously prescribed tithe is also presented in the table. Relatively small quantities of cereals were involved in the gifts. In addition, no systematic pattern is apparent across perimeters with respect to provision of gifts. The tithe or “dime“ represents an annual tax that people pay on their productive activities to religious authorities. It corresponds generally to a fraction of production and goes to needy people via religious leaders. The next major source of cereals transactions is represented by debt reimbursements. 69 Table 13 Average Quantities Provided as Gifts per Household (in kilograms) and Percentage of Households Hho Provided the Tithe (in parentheses) - ZONE - Crop Delta Middle valley Aere Lao Matam Rice 83 11.9 5.44 12.8 (87) (94.2) (68.2) (97) Maize NA 2.9 4.1 4.8 NA (76.1) (100) (82.2) Millet 1.5 9 6.1 5.3 (81) (90) (92.7) (84) Sorghum NA 12.7 5.1 5.9 NA (97) (92.4) (97.1) Cowpeas NA 2 .6 1 NA (73.3) (76.9) (0) 70 2.3 Debt Reimbursements The debts were incurred at various stages of rice production. This can be seen in Table 14. Table 14A presents the various activities of the production process in which the debts were incurred. It is apparent that almost all farmers got a fertilizer credit from SAED. Debts on insecticides ,were also significant as 25% of farmers incurred them in the Aere Lao zone and 45% incurred them in the Matam zone. 0n the other hand, few, if any, farmers had a debt on land preparation or threshing. This is consistent with the labor intensity of the .techniques used in small perimeters. An unanticipated high preportion of farmers incurred a debt on irrigation services. Since those services are organized and operated through producers' organizations, it is difficult to tell what those debts cover. Table 14B shows the distribution of the mode of reimbursement used by farmers in the four zones. He can notice that the percentages in one zone do not add up to 100 as some farmers used both modes of reimbursement and others defaulted. It is also apparent that in the Delta and Middle Valley zone a majority of farmers paid their debts in kind. The reverse is true in the Aere Lao zone, while a substantial percentage of Matam farmers did some cash payment. A similar pattern is apparent in Table 14C. 71 Table 14 The Structure of Debts in Irrigated Perimeters A. Percentage of Cases in which Debts Here Incurred For Various Activities of the Small Perimeters ACTIVITIES [andi Irrigation ’Fertilizer Insecticide ”Threshing Zones Preparation Services Delivery Delivery Services Aere Lao 1.2 62.5 100 25 0 Matam .5 0 99 45 0 B. Modes of Reimbursement: Percentage of Cases in Hhich Debts Here Reimbursed in Cash or in Kind by Zone ZONES Delta Fiddle Podor Hitam Reimbursements Zone Valley Zone Zone In Kind 91.1 88.8 20.5 68.2 In Cash 0 27.1 93.1 32.3 C. Average Quantities of Rice and Amounts Reimbursed per Household and by Zone ZONES Fiddle Variables Delta Valley Podor Matam Quantities (kg) 1874 518 12 86 Amount in CFA 0 9517 2560 1235 72 Indeed, relatively small quantities of cereals were used for debt reimbursements in Aere Lao and Matam zones, where some important cash payments were also made. On the other hand, no cash payment was involved in the Delta, where important in kind payments occurred. The Middle Valley seems to combine the features of the two extremes with substantial in-kind and cash payments. Once again, it is difficult to get, from the analysis of these figures alone, the complete story behind cereals transactions in the Fleuve perimeters. But, the figures do make important suggestions about the directions and magnitudes of these transactions.. It seems clear that most of these transactions have their origins in the production process by which several categories of inputs are combined to generate output. In our next section, we shall analyze how production and transactions contributed to cereals availability in small perimeters. 3. Indices of Cereal Availability The results of our survey are summarized in Table 15. The per capita availability of each crop to the households which grew it is described for each small perimeter's zone. Two important remarks need to be made with respect to cereal availability in small perimeters. First, no account has been made for the losses of production that occur during the post-harvest operations, because of our lack of information on their magnitude in the 73 Table 15 Indices of Cereals Availability in Producing Households Operating in Small Perimeters by Crop and by Zone Ratio 3a Purchases of Total Cereal of Cereals Availability Crops and Zones Ratio 1a Ratio 2a Per Capita Per Capita Aere Lao 42 40 36 76 (N = 362) Rice Matam 85 76 2 78 (N = 221) Aere Lao 82 80 29 109 (N = 302) Millet Matam 48 47 4 51 (N a 292) Aere Lao 51 50 6 56 (N = 106) Sorghum Matam 59 58 1 59 (N = 29) Aere Lao 64 64 1 65 (N = 29) Maize Matam 42 37 3 40 (N a 438) Aere Lao 36 34 .5 .5 (N = 130) Cowpeas Matam 12.7 7.8 .1 7.9 (N a 237) aSee Table 4 for definitions of these ratios. 74 different zones. For this reason, the figures presented in Table 15 exaggerates somewhat the availability of cereals in the different zones. But, since the same principles were used in all the zones covered in this study, the relative distribution of cereals availability is not affected. Second, as implied by number of the cases presented in Table 15, few households grew all the cereals crops in the small perimeters. In fact, the same thing was true for the households Operating in large perimeters. In general, comparable levels of cereals availability were achieved by producers of the different crops in the small perimeters. These levels were significantly less important than those recorded by producers of the same crops operating in large perimeters. It is important to mention that if some households raised all the cereal crops included in this study, they would have exceeded the Ministry of Agriculture's target. Indeed, if such hypothetical households were operating in the small perimeters, they would have had a per capita availability of cereals equal to 236 kilograms in the Matam zone and 340 kilograms in the Aere Lao zone. The per capita availability of cereals would have been equal to 512 and 257 kilograms in the Middle Valley and the Delta, reSpectively. However, given the number of households involved in the production of the different cereals crops, it was very unlikely that many households grew all the cereal crops. 75 Therefore, it is very unlikely that many of the households involved in cereal production in the small perimeters achieved the levels of cereal availability targeted by the Ministry of Agriculture. In our next section, we shall analyze the pattern of input allocations to cereal production in the small perimeters. 8. Areas Cultivated The areas allocated to different crops in the two zones covered by the small perimeters are shown in Table 16. The most noticeable feature about areas cultivated has to do with the tiny sizes of the plots of rice and maize in both zones. Indeed, the size of those plots noticeably differs from the dimensions areas allocated to the other cereals grown in the two zones, and characterizes the intensive irrigation practiced in the small perimeters. They also represent the most obvious difference with large perimeters as they correspond to higher yields but result also in lower production per household. Besides the rainfed and irrigated activities, a flood-recession agriculture is also practiced in the small perimeters. As a result, the production system is even more complex. The relatively large size of areas allocated to millet and sorghum reflects the fact that those crops were grown under rainfed conditions. 0n the other hand, maize and cowpeas were grown either under irrigation or in flood recession. 76 Table 16 Distribution of Areas Cultivated Per Household on The Small Perimeters by Zone and by Crop (in hectares) Aere Lao Zone Crops Matam Zone Rice .23 .35 (N = 362) (N = 221) Millet 2.0 3.3 (N . 302) (N = 292) Sorghum 1.5 1.8 (N = 106) (N = 102) Maize .47 .30 (N a 29) (N = 146) Cowpeas 2.2 .32 (N = 130) (N = 57) 77 The characteristics of each production subsystem will be also apparent in the patterns of the allocation of other inputs to the various cereals. C. Other Inputs The other inputs include the power sources, represented by labor and animal traction: seeds, and fertilizers. 1. Labor and Animal Traction As in the large perimeters, no detailed information was collected on the availability of labor in the small perimeters. The average numbers of people living in cereal- growing households are presented in Table 17. In the absence of more specific information, the figures of Table 17 constitute the only indicators of labor availability in the small perimeters. 2. Seeds and Fertilizers The origins and quantities of inputs used represent the two most relevant questions in the small perimeters. The analysis done earlier in Table 14A suggested that almost all farmers had incurred a debt on fertilizer delivery from SAED. Therefore, what remains to be discovered are the origins of the seeds used and levels of fertilizer use. 2.1 Origins of Seeds The information relative to seed origins is given in Table 18. Two points are particularly apparent in Table 18. First, a smaller proportion of rice growers relied on SAED for their seeds than in large perimeters. Indeed, a 78 Table 17 Average Number of Pe0ple Living in Cereals-Growing Households of the Small Perimeters by Zone CROPS Zones Rice Millet Sorghum Maize Cowpeas Aere Lao 10 9 7.3 * 8.5 (N=362) (N=302) (N=106) (N=130) Matam 11 8.7 10.6 11 9.8 (N=221) (N=292) (N=102) (N=29) (N=57) *Not reported because of the large number of missing cases. 79 significant percentage of farmers kept their own seeds from their previous production, especially in Matam. Second, the seeds of other cereals came almost exclusively from production retained or from other farmers. This was also true in the large perimeters. Beside their origins, the quantities of inputs used are relevant to our analysis. 2.2 Seeding Densities and Fertilization Rates The quantities of seeds and fertilizer used per unit of area are summarized in Table 18. Important differences exist on the seeding density and the fertilization rate of given crops across perimeters and zones. For instance, the seeding densities of rice are relatively small for both Aere Lao and Matam, (87.7 kg/ha and 29.6 kg/ha, reSpectively) versus 120.7 kg/ha for the Delta and 122.9 kg/ha for the Middle Valley. Those differences could be partially attributed to differences in the input endowment of the two types of perimeters. But, they also reflect differences in production techniques. While the large perimeters use drill seeding, tranSplanting is performed in the small perimeters. The nurseries used require smaller quantities of seeds. For the other cereals, the relatively low densities recorded reflect either their extensive methods of production or scarcity of seeds or, more probably, both. It 80 Table 18 Origins of Seeds in the Small Perimeters. Percentage of Farmers Hho Received Their Seeds From Various Sources by Crop and by Zone CATEGORIES Production *Other Crops and Zones Retained Farmers SAED Others Aere Lao 18 1.5 73 7.5 Rice Matam 41.5 1.8 55.7 1 Aere Lao 84 15 0 I Millet . Matam 100 0 0 0 Aere Lao 91 9 0 O Sorghum Matam 100 O 0 0 Aere Lao 70 30 0 0 Maize Matam 96.5 0 3.5 O Aere Lao 99 O 0 1 Cowpeas Matam 100 0 0 0 81 Table I9 Seeding and Fertilization Rates in Small Perimeters, by Crap and by Zone (in kilograms per hectare) ZONES AERE LAO MATAM Seeding Fertilization Seeding Fertilization Crop Density Rate Density Rate Rice 87.7 230 29.60 426 Millet 7.1 O 9.10 0 Sorghum 9.4 0 3.90 O Maize 18 O 32.18 124.6 Cowpeas 2.2 O 17.90 15 82 is not, however, correct to compare seeding densities across craps because of differences in their vegetative characteristics and requirements. Hith respect to the fertilization rates, the quantities recorded on rice are larger than those found in the large perimeters. The highest fertilization rate was found at Matam, with 426 kilograms per hectare. Incidentally, the highest yield was not recorded at Matam but in the Middle Valley zone, where it averaged at 3778 kilograms per hectare. The second highest yield was found at Aere Lao with 3633 kilograms per hectare. The fertilization rates in these two zones were equal to 221 and 230 kilograms per hectare respectively. Beside seeds and fertilizers, other categories of inputs relative to the operation of the irrigation pumps and other aspects of cereal production could have been used in the small perimeters. However, no data were collected on them during our survey. In summary, the structure of production in small perimeters displays interesting features in terms of the allocation of resources among the various craps. In many instances, significant differences appeared between large and small perimeters regarding the relative importance of different cereals and their performance. Differences also appeared between the two zones which had the small perimeters. Even though those differences remain to be 83 explained, we suspect that they have to do with Specific determinants highly correlated with location. One thing seems to be true for all zones: that is the interdependency and complementarity of the various components of the production system. In the limit, we can say that it is impossible to understand any component of the system in isolation. Because of the aggregation involved in the computation of our performance variables and given their large variability among households, it seems indicated to undertake our comparative analysis at more disaggregated level. Indeed, the figures uSed in the analysis, as averages, do not reveal the large internal variability existing within each perimeter of a given zone. For this reason any causal relationship derived from such aggregated figures could be misleading. However, the global figures allow one to understand the general characteristics of each type of perimeter. The information provided can then guide further inquiries on the determinants of production and cereal availability undertaken at lower levels of aggregation. The next chapter of the thesis will examine the determinants of rice products in the Fleuve region. CHAPTER FIVE THE DETERMINANTS OF RICE PRODUCTION IN THE FLEUVE REGION The analysis undertaken in Chapters Three and Four has revealed the important contribution of farmers' own production to the per capita cereal availability both in large and small perimeters. Indeed, despite the importance of purchases, the bulk of farmers' consumption requirements is covered by their own production. Therefore, the production performance of the Fleuve region rice growers constitutes a major determinant of their food security. In addition, Senegalese government officials place a high value on rice production in the Fleuve region, with the ultimate goal of reducing the large quantities of this commodity imported every year. For this reason, important resources are being injected into the development of irrigation schemes. Yet, there is a lot to be learned about the ways resources contribute to policy objectives. In fact, until recently, a major performance criterion used by SAED was the number of hectares developed. Moreover, increases in the size of current small perimeters and/or their multiplication are perceived by many as the way to guarantee the food security of the Fleuve region's farmers. However, because of the hypothesized correspondence between the scale of operation and farmers' management capacities, it seems necessary to move with caution. 84 85 From a policy point of view, it is of critical importance to provide a framework that allows one to assess the impact of alternative actions on rice production. However, it is important to mention that despite the fact that the focus is put here on irrigated rice, the other components of the production system must be included in an overall assessment of Senegalese agricultural policies in the Fleuve region. As we shall see below, the other components of the Fleuve region's diverse agricultural system affect rice production. The objective of this chapter is to present the theoretical and empirical foundations of the econometric analysis developed in this study. The chapter provides a set of hypotheses about which factors determine the performance of the rice production systems in the Fleuve region. The hypotheses reflect various opinions held by many researchers and government officials on the character- istics of the perimeters and the impact of these on production. They are also partially inspired by the results of the descriptive analysis presented in earlier chapters. For analytical purposes, we have classified the elements believed to affect production into several categories: the physical and technical factors, the economic and policy elements, and the institutional and sociological determinants. He shall examine each category in a separate section. 86 A. The Physical and Technical Determinants The physical and technical elements that influence rice production in the Fleuve region are numerous and could not possibly be all mentioned here. On the other hand, it is possible to isolate some important characteristics of perimeters that can help to explain variations of production both between the two types of schemes and within a given scheme. 1. The Physical Factors The physical factors include the effects of climatic and environmental characteristics on rice production. In this respect, we know that the Fleuve region involves a lot of diversity, in terms of climate, soil characteristics, land and water availability and suitability for irrigation.1 Such diversity in the environment is believed to be a primary determinant of productivity in the region. Indeed, we expect perimeters with the same dimensions and similar organization to have different performance because of differences of location in the Fleuve region. For instance, the problems of salt water intrusion experienced in the Delta put some constraints on how much rice can be produced in this zone, compared to the large perimeters of the Middle Valley. Similarly, the small perimeters of the Middle 1See O.M.V.S.: "Etude Socio-Ecopnomique du Bassin du Fleuve. Partie A. Presentation Generale du Bassin du Fleuve.“ April 1980. 87 Valley zone are expected to have different performance than those Operating in the Matam zone deSpite their similarities in terms of size and management. Even within a given perimeter we cannot expect homogeneity with respect to the quality Of soils and other physical elements. Therefore, when combined with other factors, those differences help to explain the dispersion of yields recorded in different plots of a perimeter. 2. Technical Factors These include the production techniques used, the size of irrigated plots, the existence of appropriate inputs and varieties, the type of irrigation equipment, etc. Tuluy (1978) has made a classification of the various techniques Of rice production in Senegal by combining several criteria: irrigation method, the number Of harvests per year, and the degree Of labor and capital intensity. These criteria have allowed him to establish a distinction among perimeters in the Fleuve region: 1. Pump irrigation, single crop, mechanized technique, typified by Boundoum in the Delta. 2. Pump irrigation, two crops, mechanized technique, corresponding to Nianga of the Middle Valley. 88 3. Pump irrigation, double cropping and manual techniques as typified by Matam (Tuluy, 1978, pp. 7-12). Such a classification outlines differences in production techniques. For instance, direct seeding is widely used in many large perimeters, while transplanting of young plants from nurseries is practiced in some large perimeters (Nianga and Guede) and almost all small perimeters (C.C.C.E., 1982. p. 21). Each technique has its own requirements in terms of labor. Indeed, drill seeding allows reducing the labor needed to about 6 to 8 mandays versus 78 for tranSplanting. However, the seed drilling technique implies more difficult weeding, as the risk of infestation by weeds is increased (Bonnefond et. al., 1981, p. 32). Consequently, unless herbicides are used, the labor requirement increases for weeding. On the other hand, yield differences were recorded as a result of seeding versus transplanting. The size of individual plots constitutes a major source of output variations not only between large and small perimeters, but also among farmers Of a given perimeter. According to Fresson, three factors are considered by SAED when fixing the size of family plots: 1. The desire to extend the benefits of irrigation to a maximum number of 89 families even if this means that each family will get only a tiny plot. 2. The size Of households which include on the average 10 peOple, among whom four are active workers. 3. The time available to farmers, who combine irrigation with the rainfed and flood-recession agriculture. In this respect, Fresson indicates that SAED does not intend for irrigated rice production to substitute for the traditional farming but to complement it.2 Besides the size Of the area, the availability Of modern inputs is believed to affect quantities produced. In the Fleuve region, the major inputs besides land are labor, fertilizers and seeds. Differences in labor availability among producing households are hypothesized to partially explain differences in production. Labor availability includes both quantitative and qualitative aspects. But quality distinctions could not be represented in our analysis because of the unavailability Of the needed data. For fertilizers, several elements determine their effectiveness in increasing yield. Indeed, their impact 2A critical discussion Of these points is made in Fresson, Public Participation, p. 35. 9O depends not only on the quantities but also on the availability of complementary inputs such as fertilizer— reSponsive varieties, adequate water control, insecticides and appropriate cultural practices (Zalla, Diamond, and Mudahar, 1977, p. 4). With respect to seeds, there is a need to account for differences in the seeding techniques used in the different perimeters. The technical elements that have been mentioned in this section constitute a sample of a more complex set of technological and economic factors that affect the variation in rice production both among perimeters and among producers Operating within any given perimeter. But physical and technical factors, alone, do not fully explain variations in production. Some economic reasons need to be considered. 8. Economic and Policy Factors The economic and policy factors relate to the various elements that motivate or dissuade different participants to produce rice in the Fleuve region. From a macro-economic point of view, a crucial question relates to the comparative advantage or disadvantage of Senegal in rice production. Given the local production costs and import prices, the question is whether it is profitable for the country to grow rice instead Of importing it. Despite the complexity of the question and the methodological problems associated with 91 cost-benefit analysis in the Senegalese_ setting3, the studies undertaken yield similar conclusions. That is, as Tuluy puts it ". . . except for the animal traction, gray soil rice production from Casamance, none of the domestic production techniques is competitive with imports in Dakar.“ (Tuluy, 1978, p. 32) The same studies found that under the current technologies and given factor availabilities and prices, labor intensive and intermediate mechanization were superior to large scale, capital intensive projects in meeting the national Objective Of increased rice production. Moreover, the studies seem to agree on the fact that because of the protection due to tranSportation and handling costs, substitution of imports by local production could profitably take place within producing regions. I From farmers' point Of view, given the subsidized costs of irrigation services and inputs, producing rice for their own consumption constitutes the cheapest way to supply themselves with this commodity. Indeed, in the 1980 season, the official price of paddy was equal to 41.5 CFA francs per kilogram while the private production costs in small perimeters were estimated at 7.8 CFA per kilogram and the consumer rice of rice was equal to 80 CFA francs. Given 3See Makhone MBaye, “Implementation and Evaluation of Rural Development Projects Under Uncertainty: With a Special Reference to the Sedhiou II Project (Casamance- Senegal)." (Plan B paper, MSU, 1983) for a discussion of some of these problems. 92 those prices and considering an extraction conversion rate Of 67% for paddy, farmers save 30 CFA francs/kg by keeping their consumption and paying their debts in cash. Besides the producers' price of rice, farmers' decisions are influenced by such macro policy variables as the country's exchange rate and the import price of rice. These macro- policy variables contribute to shape the relative attractiveness of several crops. This constitutes an additional justification for a greater consistency between agricultural policies and the overall macro-economic objectives. Related to the macro-policy variables, the relative profitability of different types of agriculture constitutes an important determinant of rice production, mainly in small perimeters. In this respect, the reduced risk and the possibility of forecasting that irrigation provides gives it an advantage over rainfed agriculture when there is a competition for labor during the winter season. But a different situation prevails during the off-season, when there is a competition between irrigation and the flood- recession agriculture. Indeed, as the flood water starts to recede, farmers are able to predict the output that they can get from their flood-recession fields. Production is the product of the yield achieved times the area cultivated. Hhile yields are higher in irrigated perimeters, many farmers give priority to their recession 93 fields whose areas per household are about ten times larger than those of the irrigated plots (Fresson, 1978, pp. 35-36). Besides the competition between different types of agriculture, there is no agreement between SAED and farmers about the choice of an Off-season crop in small perimeters. SAED has attempted to introduce wheat as a second crop in irrigated perimeters. The choice of this crop was partially motivated by the desire to meet the Senegalese government's Objective of reducing the imports Of wheat and ultimately eliminating them. But wheat also presents advantages as an Off-season crop. First, wheat. has a relatively short- growing cycle (90 to 110 days) and can, therefore, reduce irrigation costs. Growing wheat as a second crop would also lessen the competition between irrigation and other agricultural activities. Second, wheat seems to be well suited to the ecology of the region. But, farmers do not seem to be attracted by wheat, whose food potential and prOper growing methods are not well known. In addition, the selling price of wheat is relatively unrewarding for many farmers (Fresson, 1978, pp. 32-33). On the other hand, many farmers favor rice as an off-season crop. But, SAED opposes this option because two consecutive crops Of rice during the rainy and dry seasons would overlap due to the length of the growing cycle. In addition, growing rice during the hot season would involve a 94 lengthening Of the growing cycle. This would result in an increased demand for water at a time Of the year when the river level is very low. Therefore, the pumping costs borne by farmers would also increase. It appears that the differences between SAED and the farmers reflects the fact that each faces a different set Of implicit or explicit costs. In this respect, we can hypothesize that farmers' preference for rice reflects the fact that they pay a highly subsidized price for water. Therefore, the price of water can be an important policy variable that policy-makers could manipulate to influence the volume and mix of production.- The increased activity of various types of pests during the dry season and the more extensive leaching of the soil resulting from a double rice crop constitute additional reasons invoked by SAED for opposing double cropping of rice. These factors, and many others, affect farmers' motivations and ability to produce rice. Indeed, despite its policy of non-interference in the village management, SAED still plays an active role. For instance, SAED's Objective is to charge each producers' group the real costs of small perimeters. But in fact, the groups do not currently bear all the costs generated by irrigation. Indeed, SAED ‘provides some services at no charge (delivery of insecticides) and credits farmers for decreases in 95 production due to calamities or resulting from its own actions. (C.C.C.E., 1982, p. 94). Related to this point is the question of the replacement of the irrigation pumps. The first Sets were provided free to farmers, who are expected to take in charge their renewal. Suggestions that migrants' remittances be used in order to finance the pumps were not well accepted by many farmers. Yet, the financial analysis undertaken by the ”Caisse Centrale de COOperation Economique“ (C.C.C.E.. 1982) revealed that farmers provide a monetary subsidy to irrigated rice. In fact, this study found that the system could not operate without the income from other activities. By permitting farmers to partially pay for the charges emanating from irrigation, the migrants' remittances and other Off-farm incomes allow them to keep most of their production for their own consumption. These economic and financial elements, as they contribute to shape the incentives Of the participants of the agricultural system, represent major determinants Of rice production. When they are combined with other institutional and sociological factors, the same elements are hypothesized to explain variations in production between types Of perimeters and among producers within a given perimeter. 96 In our next section, we shall examine some institutional and sociological factors believed to affect the performance of different perimeters. C. Some Sociologicaland Institutional Determinants of Rice Production in the Fleuve Region Case studies of irrigated perimeters have revealed particular features conducive to the success or failure of different projects (Patterson, 1984; Casey, 1984; Fresson, 1978; Diemer, et. al., 1983; and CCCE, 1982). In particular, these studies have isolated some institutional and sociological factors that are believed to affect performance. An important characteristic of the small perimeter is its integration into the framework of existing social structures. Such an approach has allowed utilization of existing village institutions by gearing the perimeters to a social and economic unit of space: the village or ward. These features are reinforced by the fact that some management functions are delegated to farmers' associations, resulting in a greater participation of farmers. This has facilitated the development of collective work. Indeed, volunteer farmers undertake all the work manually and share the different costs generated by their activities. But the positive effects of farmers' participation were attributed to the following: 97 --As local residents, farmers know the rules, constraints and balance of power that prevail in their village. Therefore, they are able to devise a stable organizational system, suitable to their socio-economic context. --Because they are appointed by their groups, farmers' representatives who stand for traditional authority and/or enjoy the esteem and trust of their fellow citizens, get the consensus necessary for winning acceptance Of their decisions and ruling. These elements justify the critical necessity of securing farmer' participation in the planning stage Of a project. For this purpose, some basic conditions must be met: --First, the project's aim must be compatible with those of the socio-economic system. In relation to this point, it is important to remember that the introduction of village irrigation systems was motivated by the desire to lessen the dramatic impacts Of the food crisis which followed the 1970's droughts. The rapid multiplication of the small perimeters is generally credited to the reinforcements provided to farmers by the climatic calamities. --Second, the production models of the project must be flexible enough to allow their assimilation by the targeted social system. 98 --Finally, delegation Of some decision-making powers should be achieved through decentralized methods and noncompulsory Operating procedures (Fresson, 1978, pp. 5-6). Even though these conditions contrast sharply with the centralized management methods used by SAED in large perimeters, the relationships between the conditions for a successful Operation and the size Of perimeters need to be specified. Analyzing the characteristics Of the village systems conducive for develOpment, Patterson emphasizes, among other things, their smallness and their flexibility in terms of innovation (Patterson, 1984, p. 51). In fact, bigger plots and memberships are hypothesized to multiply the difficulties Of organization and management, making conflicts more likely and more frequent. This point implies that rather than size per se, the homogeneity of the producer group constitutes the critical variable. But, the producer groups do not always constitute homogenous entities with respect to kinship, caste or political view. In fact, most Of the small perimeters are located in areas dominated by the highly stratified Halpulaar ethnic group. While further studies are needed on the subject, there seem to be some close relationships between a person's caste and his participation in the benefits of an irrigation project. 99 Fresson (1978, p. 47) for example, indicates that the disputes which arose in the early phases of some perimeters she studied involved farmers of different ethnic groups. Hhile Patterson (1984, p. 73) could not find a direct relationship between the noble caste status and the financial well-being of participants, he did emphasize the traditional concentration of power and wealth in the hands of a few notables. These points reinforce the need to evaluate the irrigation systems within the socio-cultural and historical context Of the Valley. A significant diversity characterizes the different zohes Of our study in this respect. This diversity, combined with the relative youth of the village irrigation system, explains the difficulty of making generalizations about the institutional and sociological determinants of performance. DeSpite such difficulties, our econometric analysis will attempt to isolate some common characteristics of the different irrigation schemes. The discovered features will help us to gain additional insights into the design and operation Of future perimeters. Before starting the analysis itself, it is useful to briefly present some elements Of the methodology used in the sixth chapter of this study. 100 0. Elements of Methodology In this section, we briefly present the estimation procedures used in the following analysis before discussing the use Of dummy variables to represent categorical variables. All equations are estimated with the method Of ordinary least squares (OLSQ), which provides, when its assumptions are met, the best linear unbiased estimates Of the equation parameters. He shall initially assume that the assumptions of the ordinary least squares are met here. Later, we shall critically analyze what happens when these assumptions are relaxed to account for some problems in our data. Our analysis will attempt to capture the impact on cereal production in the Fleuve region of phenomena like the type Of perimeter (large or small), location Of farmers in a particular zone and organizational factors. The standard way of representing such qualitative elements is to use dummy variables. This is generally done by "dropping out“ one category from each class of dummy variables and, therefore, having it represented by the intercept. In fact, this procedure makes the categories "left out“ the standard from which the classes represented in the equation are allowed to deviate. D.B. Suits (1984, pp. 175-180) showed how, in cases where a set of dummy variables is used to measure the variation in behavior among several classes, the 101 presentation of results in appropriate forms and their interpretation differ from the purely mechanical problem of fitting the regression equation. He indicated a way to transform the regression coefficients in order to overcome these difficulties. The transformation, in essence, derives from the fact that we can add a constant to each of the estimated dummy variables' coefficients and subtract the constant from the estimated intercept; the new set of coefficients have statistical properties identical to those initially estimated. In fact, the standard way of leaving one category out constitutes a particular case of the principle, as the coefficient Of the variable left out is equal to zero, which is also subtracted from the constant term. However, the same principle allows us to select our constant in a way that facilitates the interpretation and presentation of our results. We shall use Suits' transformation procedures in our analysis. But, as implied by the method itself, we need to estimate first the parameters of our equations in the usual way. In the next chapter, we shall present the econometric model as well as the results of the estimation procedures. CHAPTER SIX THE ECONOMETRIC MODEL A. Introduction The objective Of this chapter is to develop an econometric model which approximates the quantitative relationships involved in the Fleuve region's rice production systems. More Specifically, the model tries to identify and isolate the variables that are relevant in explaining variations Of rice production in the Fleuve region. The analysis presented in Chapter Five dealt with various hypotheses regarding the determinants of production. The econometric model will incorporate some of these hypotheses and will test them with the cross-sectional data from the 1982/83 season. The model involves three equations: --The first equation describes the area allocated to paddy rice by producing households of the Fleuve region. The equation investigates the relationships between area cultivated and relevant variables, such as the number of active workers in the household, the location in a particular zone and the participation in a specific producer group. --The second equation describes the distribution of yields in relation to the variation of the major inputs: fertilizers, seeds and number of active 102 103 workers. In addition, dummy variables were included to represent the effects of categorical variables: location, organizational factors, etc. --Finally, the production equation was derived as an identity given by the product of area cultivated times the yield achieved. Several specifications were tried for both the area and yield equations. The most "satisfactory“ equations were selected to derive the production equation. The following criteria were used in the selection: --The various hypotheses discussed in the previous chapters provide some guidance on the types of relationships that can be expected. In addition, theory and empiricism give some indication on the functional form of the phenomena studied. For instance, the usual theories Of production functions suggest nonlinear relationships between output and the various inputs used. Both the selection Of variables and the specification of the equations were inspired by those considerations. --The value Of the adjusted R2 was another criterion used to choose among the several equations. Equations with higher adjusted coefficients of determination explain more of the dependent variable's variance. Everything else being equal, we considered the equations with the highest R2 to be more satisfactory. 104 --Finally, the equations more useful for policy purposes were preferred. For instance, the intro- duction Of dummy variables for producer groups would be a way to make some allowance for our specific ignorance Of localized factors which affect the yield of paddy rice. Indeed, changes in the intercept of the yield equation signifies the existence of those factors in the concerned group. But this does not give any Specific information on the nature Of the localized factors. A more useful Option is to capture the effects Of the localized factors on the efficiency Of major inputs. Equations allOwing for changes in the elasticity of yield with respect to fertilizers and seeds would be a way to get more useful information from our ignorance. The combination Of these criteria allowed us to select the most satisfactory area and yield equations. In our next section, we Shall present the economic and statistical models along with the results of the estimation procedure. 8. Presentation Of the Models The econometric model postulates the behavioral relationships that characterize rice production in the Fleuve region. These postulated behavioral relationships will be quantified in the statistical model. 1. The Economic Model 1. AREA = f (number of active workers, location) 105 2. YIELD = f (Number of active workers, fertilizers, seeds, location) 3. PRODUCTION = AREA x YIELD (Identity) Our production equation has been disaggregated into an area and a yield equation. Such an approach has been justified in the literature- on the basis of the biological nature Of the production process in agriculture, the time lags involved between planting and harvest and the generally extensive use of land and climate (Houch et. al., 1976; Askari et. al., 1977; Nerlove, 1956). Indeed, the area allocated to different crops is thought to be determined by their relative profitability. 0n the other hand, yields are generally considered to be determined by technological factors, weather and other more or less economic influences. In the case of the Fleuve region, we hypo- thesize that the distribution Of the area cultivated in paddy rice reflect the attractiveness Of irrigated rice, compared to the other forms of agriculture. In addition, we consider technical and managerial elements to be major determinants Of yield differences among producing households. Equation 1 describes the variations in the area allocated to paddy rice in the different households as a function of variations in the households' endowments Of active workers and the households' location. The: relationship between area cultivated and number Of active workers is based on the fact that SAED determines the Size 106 of each household's plot in relation to the availability of workers in the household. However, because of the physical limitation in the amount of irrigated land available relative to the amounts requested by farmers, mainly in the small perimeters, we do not expect a linear relationship between area cultivated in paddy rice and number Of active workers. The locational variable accounts, among other things, for the variations in the availability Of land suitable for irrigation. Indeed, more irrigation land is available in the Delta and Middle Valley zone, in which the large perimeters are found, than in the other two zones. Moreover, similar differences are expected to exist both among perimeters Of a given type and among producer groups Operating in a particular perimeter. In the statistical model presented below, locational variables are introduced to represent both zones and producer groups. The intro- duction of locational variables representing the different producer groups is designed to capture localized factors related to those differences. Besides differences in the physical availability of land, the two categories of locational variables could represent the effects of other economic, policy and sociological factors, to the extent that these factors are highly correlated with zones and producer groups. In the analysis of the determinants of rice production that we conducted in Chapter Five, we Showed 107 how several economic, policy and sociological factors could affect rice production. However, we could not explicity incorporate most of these elements in our econometric model. Nevertheless, some of these factors which are location-specific will be picked up by the coefficients of the locational variables. Equation 2 postulates a relationship between the yield of paddy rice and both the use Of different inputs in producing households and specific factors related to the location in a given zone. The inputs involved are the number Of active workers in producing households, the fertilization rate and the seeding density used in each household. We expect a positive relationship between the households' endowments in active workers and the yields achieved by different producers. Our expectation is based on the hypothesized positive link between labor-intensive activities such as transplanting and manual weeding and the yield of paddy rice achieved by producers. In addition, most farmers combine irrigation with rainfed and flood- recession agriculture. As several activities Of the three subsystems overlap, we expect households with higher endowments Of active workers, everything else being equal, to achieve a better performance. In addition to the number of active workers, the fertilization rate and the seeding density used in the different households are believed to affect the yields Of 108 paddy rice. More specifically, everything else being equal, the households which used the highest fertilization rates and seeding density are expected to achieve the highest yields. However, as explained earlier, the effectiveness of fertilizers depends not only on the quantities used but also on the availability of adequate complementary inputs including fertilizer-reSponsive varieties, adequate water control and appropriate cultural practices. The different producer groups are hypothesized to be heterogenous with respect to the availability Of such complementary inputs. Therefore, in the statistical model, interaction terms between the fertilization rate and the household's participation in a given producer group were introduced into the yield equation. In addition, our two types Of perimeters present differences in seeding techniques. Indeed, in large perimeters direct seeding is the most common technique used, whereas farmers Operating in small perimeters generally perform the transplanting Of seedlings initially grown in nurseries. It seems, therefore, interesting to test whether significant differences in the responsiveness of yield to seeds were recorded in the two types of perimeters as a result Of their different seeding techniques. For this purpose, an interaction term between the seeding density and the household's Operation in a large perimeter was included in the statistical model's yield equation. The statistical 109 significance of our two categories Of interaction terms will allow us to isolate the effects of localized factors and a particular seeding technique on the effectiveness Of fertilizers and seeds in increasing the yield of paddy rice. Locational variables representing the different zones of the Fleuve region are also included. Factors related to the type of soils, the climate and other natural and agronomic elements are hypothesized to be location specific. The effects of these factors .On the yield of paddy rice could be picked up by the coefficients of the locational variables. 2. The Statistical Model Area Equation 3 55 1. LSUPi = a0 + alLMODMi + jgicjpzj + EgldeGk + U, Yield Equation 2. LRDMTi = b0 + blLENGUi + bZLSENU, + b3LMODMi + 3 55 2 3:1“ij + Elgkmieaik + 5181mm“ + v, Production Equation 3. LPRODi = LSUPi + LRDMTi + N, where: LSUPi = Natural logarithm of the area allocated to rice in household i LMODMi DZ OGk LRDMTi LENGU1 LSEMUi INTG3ik INTG4ik 110 Natural logarithm of the number of active workers in household i 1 =19 2’ o 0 0,1366 Dummy variable representing the different zones DZj = 1 if the household is located in zone j DZj = 0 if the household is located in a different zone j = 1, . . . 3 Dummy variable representing the different producer groups 06k = 1 if the household belongs to producer group k 06k = 0 if the household belongs to a different producer group k = 1, 2. . . . , 55 Natural logarithm of the yield of paddy rice (in kg/ha) achieved by household i Natural logarithm of the fertilization rate (in kg/ha) used by household i Natural logarithm of the seeding density (in kg/ha) used by household i Interaction term between the logarithm Of the fertilization rate in the household i and the participation of the household in producer group k INTGBik = LENGUi * DGk i = 1, 2, . . . , 1342 k = 1, 2, . . . , 55 Interaction term between the logarithm of the seeding density in household i and the operation Of the household in large peri- meters 111 INTG4,1 = LSEMU, * DP1 where DP 1 if the household Operates in a 1 large perimeter DP1 = 0 if the household Operates in a ‘ small perimeter LPROD, = Natural logarithm of the production of paddy rice in household i PROD, = Production of paddy rice in household i (in kg) MODM, = Number of active workers in household i ENGUNIT, = Fertilization rate used by household 1 (in kg/ha) SEMUNIT, = Seeding density used by household i (in kg/ha) U-, V, and H- represent the error in terms Of the equations 1, 2 and 3. U-, V. and H- are assumed to be aormal with means Of 0 and variance equal to and . u, v w Taking the anti-log Of equations 1 and 2 and collecting and rearranging terms, we can rewrite the production equations as: 3 55 (c- +o<-) ZIDZ- 21d 06 (a1 + b3) 3 J j=1 J k=1 k k PROD, = A(MODM,) *e *e * 55 2 (b, +K§IBkDGk> (b2 +1251X,DP1) (ENGUNIT,) * (SEMUNIT,) + w, The empirical estimates of parameters are summarized in Table 20. A more complete presentation Of our most satisfactory equations is given in Appendix C. In our next 112 section, we shall analyze the empirical results Of our econometric model. C. Analysis of the Empirical Results Our analysis of the empirical results will involve two parts. In the first part, the results of the estimation procedure which are summarized in Table 20 are discussed. In the second part, some examples are presented for different producer groups in order to illustrate the findings of the econometric analysis. 1. Analysis Of the Estimated Parameters Our econometric model was estimated with cross- sectional data. This has important implications for the interpretation of the estimated parameters. In contrast to time-series estimates, which yield Short-run elasticities, the cross-section estimates represent long-run elasti- cities. This difference stems from the underlying assumptions Of these two techniques. While a time-series analysis implicitly assumes that the various time periods are homogenous except for factors explicitly appearing in the function, estimating parameters from a cross section assumes that all individuals are homogenous except for differences explicitly introduced in the cross-section function (Koutsoyonnis, 1983, p. 405). As a result of the latter assumption, we are saying that if an individual with a lower resource endowment gets the same quantities of 113 umuapucp mm_nmpem> asszu mmumuwu:_ x mcopumacm umscoem:~EFw Amo.v Aec.v ANo.V No.5m so. Nemfi x x x cm. mm. OH. 8N.e exams .m.~ Aeo.v Aao.v ANo.v ANN.V me.em om. Nemfi x x cm. em. oH. mm.e ezo¢4 e.N Aeo.v Aeo.v ANc.V Amm.v om.mm mm. mama x x «N. mm. c". mN.m page; m.~ Aeo.v Amo.v Amo.v ASN.V mu.mHH em. Nemfi x «N. cm. m“. Ne." exam; N.N Amo.v Amo.v ANc.v ANN.V oa.HeH 8N. Nemfl we. we. NH. m~.m exams H.N ANo.V mN.omH mm. ecmfl x x NW. mc.m- 22m; ,m.H ANo.v Aeo.v em.-~ we. can“ x «H. 55.“- aamS N.“ Amo.v Amo.v am.Hm No. memfl em. 58.“- aams H.fi mowum_umum a mco_um> m mmpampem> memnesz N umumanu< neomno mmpnapem> acmuco mu=_ acoucmamo cowumzcm Lo congaz mucwpu_ywwou .mcopmmmeawm mg» mo mmume_umu pmupcwqu cm mpnmh 114 inputs as another individual who has more, the first individual will achieve a similar level of production. But since the adjustment Of the production process requires time, the estimates derived from cross-section data must be interpreted as long-run elasticities. Table 20 represents, sequentially, three area equations and five yield equations. The different area equations differ only by the introduction Of one or two categories of dummy variables. Indeed, equation 1.2 is identical to equation 1.1 except for the zones' dummy variables. Similarly, equation 1.2 is identical to equation 1.1 except for the dummy variables repreSenting the various producer groups. The five yield equations present similar character- istics, with the difference that the last two equations- involve interaction terms. I Under the particular design implied by Table 20, changes in the adjusted R2 from equation 1.1 to equation 1.2 and from equation 1.2 to equation 1.3 represent the specific contribution of the zones' and producer groups' dummy variables to the explained variance of our dependent variable. Therefore, the variations in R2 represent the aggregate effects Of the localized factors which affect variations in area allocated to paddy rice. In equation 1.1, an R2 of .02 is computed. This means that variations in the number of active workers explain only 2% of the variance Of the area cultivated in paddy rice in the 115 different households Of the Fleuve regions. When the zones' dummy variables are introduced in the equation, the equation now explains 68% Of the variance in the dependent variable as Opposed to 2% in the first equation. Finally, when the dummy variables representing the producer groups are introduced, R2 increases from .68 to .85. These figures indicate the critical importance of the factors Specific to the location in a particular zone and the participation in a given producer group in explaining differences in area allocated to rice. Area equation 1.3 reveals an elasticity Of area allocated to paddy rice with respect to the number of active workers equal to .22. The coefficient is statistically significant even at 1% level Of confidence. This indicates that differences in households' endowments Of active workers was a significant determinant Of variations in the area allocated to rice. Indeed, a household with 1% more active workers than another one had, everything else being equal, a plot .22% larger. The complete area equation presented in Appendix C2 shows that all three dummy variables' coefficients are significant at 1% level of confidence. This signifies that each of our first three zones presents Significantly different locational characteristics when it is compared with the Matam zone in terms of its impact on variations in area allocated to rice. Similarly, 41 Out Of the 55 116 coefficients Of the producer groups' dummy variables are significant at 10% level Of confidence. This indicates that 41 producer groups have localized factors influencing variations in area allocated to rice that were significantly different from the characteristics Of the Gaodal producer group initially used as the reference. In order to facilitate the interpretation Of the dummy variables' coefficients, they were transformed according to Suits' procedure referenced in Chapter Five. The transformation procedure and the new sets of coefficients are presented in Appendix C3. Yield equation 2.1 relates variations in the logarithm Of the yield achieved in various households to variations in the logarithm Of the number of active workers, and the logarithms of the seeding density and the fertilization rate. Equations 2.2, 2.3, 2.4 and 2.5 include the same variables plus several categories Of dummy variables. As was the case for the different area equations, it is interesting to analyze the effects Of the localized factors represented by dummy variables before examining the individual elasticities. In equation 2.1. 26% of the variance in yield is explained by the independent variables included in the equation. The explained variance Of yield is increased to 34% when the zones' dummy variables are introduced in equation 2.2. This variation in R2 indicates that we 117 explain 8% more of the differences existing among the Fleuve region's rice producing households with respect to yield achieved when we add to their differences in input availability and use, localized factors Specific to the zone where each household is located. Hhen dummy variables representing the different producer groups are added to the independent variables already included in equation 2.2, R2 increases to .59. In contrast, when a variable representing the interaction between the fertilizer use by a household and the household's membership in a particular producer group is included with the independent variables already in equation 2.2, as is the case in equation 2.4, R2 increases to .60. However, no change in R2 was recorded between equations 2.4 and 2.5 as a result of the introduction of the variable representing the interaction between the seeding density used in a household and the location of the household in a large perimeter. The largest increase in the explanatory power of the yield equations was recorded when some allowance was made for localized factors affecting the yield of paddy rice and for other factors Operating at the producer group level. Such allowance was made either through the introduction of dummy variables for the producer groups as in equation 2.3, or through the inclusion of interaction terms. Because Of its greater usefulness for policy purposes, equation 2.5 was found more satisfactory. 118 Therefore, it will be used to derive the different elasticities. Yield equation 2.5 reveals an elasticity Of yield with respect to the number of active workers equal to .10. This figure means that if a household had 1% more active workers, its yield of paddy rice would, ceteris paribus, increase by .10%. This elasticity was significant at 1% level Of confidence. This finding confirms the significant role Of the household's endowment of active workers in explaining variations of yield in the Fleuve region. In addition to the number of active workers, seed and fertilizer use had important effects on yields. 'Indeed, the elasticity of yield with respect to seeds was equal to .26 and was significant at 1% level Of confidence. Such an elasticity indicates that, everything else being equal, the yield of paddy rice in a household would increase by .26% if the seeding density was increased by 1%. However, the coefficient of the variable repre- senting the interaction between seeding density used in a household and the household's Operation in large perimeters was not significant even at a 99% level of confidence. This indicates that no significant difference in the elasticity Of yield with respect to seeding density was found between large and small perimeters. The test was designed to see whether differences in seeding techniques between the two types Of perimeters had an impact on yields achieved. Based 119 on our evidence, no significant difference exists between the two techniques as far as yield is concerned. With respect to fertilizers, variables representing the interaction between the fertilizer used by a household and the household's membership in a particular producer group were included in the equation. Therefore, a yield response to fertilization rates can be derived for each of the 55 producer groups included in this study. Since the Gaodal producer group was used as a reference, the coefficient of the variable LENGU, presented in Table 20 represents the elasticity of yield with respect to fertilizers in that particular producers' group. He can say that if a household operating in the Gaodal producer group increased the fertilization rate it used by 1%, everything else being constant, the yield of paddy rice achieved by that household would increase by .38%. The elasticity of yield to fertilizer in any other producer group can be found by adding the coefficient Of the corresponding interaction term to the elasticity found in Gaodal. To the extent that the coefficient of an interaction term is significantly different from zero, it indicates that important localized factors (relative to Gaoda) affect the efficiency of fertilizers in the producer group involved. But when an interactive is not statistically significant, this signifies the fact that the yield response to fertilizer in the involved producer group was not significantly different from 120 the elasticity found at Gaodal. The elasticities Of yield to fertilizers found for the producer groups ranged from a low of -.08 in the 14th "groupement" Of Ndiatine to a high Of .51 in the 37th “groupement“ of Gangal. Moreover, 31 out of the 55 interactive terms' coefficients were significant at 10% level of confidence. This finding is important because it indicates that 32 different elasticities of yield to fertilizers can be found. It also confirms important inter-group variations with respect to the efficiency of fertilizer use. Finally, the coefficient of the dummy variable representing our third zone was significant at a 5% level of confidence. On the other hand, the other two coefficients were not significantly different from zero, even at a 10% level of confidence. These results indicate that in addition to the variables already included in our equation, other specific factors, highly correlated with the location in the small perimeters of the Podor zone, had important effects on yield. These factors were hypothesized to be related with some physical, environmental and agronomic elements. However, our results indicate that the Delta and Middle Valley zone were not significantly different from the Matam zone in terms of these zone-specific factors. In the transformed version of our yield equation, the region's average, rather than the Matam zone, was used as reference of the zone's variations. But the Gaodal producer group remained the standard of the variations in the elasticities 121 of yield with respect to fertilizers. He shall illustrate our major findings with some examples before analyzing their implications. 2. Some Examples He shall take three examples corresponding to one I'typical" situation and two extremes. For the “typical" situation,_we shall select the Gaodal producer group which was used as reference for the producer groups' dummy variables. The Gaodal producer group, which is located in the small perimeter Of Nguidjilone in the Matam zone, is typical in the sense that it had the most frequent elasticity of yield with respect to fertilizers. Indeed, as we suggested earlier, the elasticities found in 24 producer groups. were not significantly different from that of Gaodal. The extreme cases correspond to the Gangal and the Ndiatine producer groups where the highest and lowest yield response to fertilizers were found respectively. For each of these groups, the estimated paddy rice production equation is presented below. All the coefficients involved in our examples were significant at a 10% level Of confidence. --Typical Case: Production Equation at Gaodal PROD, , .04(MODMi)(.22 , .10) e-.O7DZ4* e-.5soeso ,(ENOUNIT,)-33 ,(SENUNIi)-25 Since 0Z4 = 1 and 0660 = lewe have 122 PROD, = (.04)(.93)(.52)(MODM,)‘32 (ENOUNIT,)-33 (SEMUNIT,)°25 or (6.1) PROD, = .02(NDDM,)-32 (ENGDNIT,)-38 (SEMUNIT)°25 --"Extreme“ Case 1: Production Equation at Gangal (-1.72 + .34)OZ3 PROD, = .O4(MODM,)‘32* e ,9-230637 (ENGDNIT,)I-33"~13DG37)(SENDNIT,)-25 Since DZ3=1 and DG37=1, we have PROD, = (.04)(.25)(1.25)(MODM,)‘32(ENGUNIT,)'51 (SENUNIT,)°26 or (5.2) PROD, . .01(NDDN,)-32 (ENGDNIT,)-51 (SEMUNIT,)°26 --“Extreme” Case 2: Production Equation at Ndiatine pRODi g '04IMODMiI'32* e(.85 - .18)DZl*e-.97DGI4* (ENGUNIT,)('38 - ~45DGl4I (SEMUNIT,)°26 Since 02, = 1 and 0614 = 1, we have PROD, = (.04)(2.80)(.37)(MDDN,)-32 (ENGDNIT,)--08 (SENDNIT,)-26 or (6.3) PROD, = .O4(MODM,)°32 (ENGUNIT,)'°08 (SEMUNIT,)'26 The three production equations differ by the scaling factors represented by the value of the constant terms and, more importantly, by the extent to which yields are responsive to fertilizers. Such a difference is shown by the different elasticities Of yield with respect to fertilizer computed in the three equations (.38 for Gaodal, .51 for Gangal and -.08 for Ndiatine). It is interesting to analyze, based on these figures and the information presented in earlier chapters, the private profitability Of fertilizers at the margin. The 123 point is to see whether, given the prices Of fertilizer and paddy rice and considering the production equations in our three producer groups, it paid for the involved farmers to use additional quantities of fertilizer. The same analysis will be conducted considering the price changes that took place in the last two years. During the 1981/82 season, the average price paid for farmers for one kilogram of fertilizer was equal to 25 CFA francs. This price was increased by 100% in 1983/84 before being set at about 90 CFA francs per kilogram in 1984/85. During the same time, the producers' price of paddy rice had the following evolution: 51.5 CFA francs per kilogram in 1981/82, 60 CFA francs per kilogram in 1983/84 and 66 CFA francs per kilogram in 1984/85. The net incremental return of using one additional kilogram of fertilizer was calcu- lated for each of our selected producer groups at the 1981/82, 1983/84 and 1984/85 prices. For Goadal, given an average fertilization rate of 426 kg/ha, an average paddy rice production of 1203 kg and an elasticity of production to fertilizer equal to .38, the ratio of marginal increase of paddy rice production per kilogram of additional fertilizer use in 1981/82 can be computed as follows: Marginal product of fertilizer (in kg of rice per kg of fertilizer = .0038 X 1203 kg rice 3 4.57 g 1.07 .Ol X 426 kg fertilizer 4.26 rice/kg additional fertilizer 124 This ratio indicates how many kilograms of rice could be obtained at Gaodal by using one additional kilogram of fertilizer. The net incremental return of fertilizer use is obtained by multiplying the marginal product of fertilizer by the producer's price Of paddy rice (to get the marginal value product Of-fertilizer) and by subtracting the price of one kilogram of fertilizer (the marginal cost) from the result. Therefore, in 1981/82, we had the following net return: 1.07 X 51.5 CFAF - 25 CFAF a 51.10 - 25 = 30.10 FCFA/kg Of additional fertilizer. For 1983/84, the producer's price Of rice and the price of fertilizers were respectively 60 and 50 CFA francs per kilogram. Therefore, assuming the same marginal product of fertilizer as in 1981/82, the net return of fertilizer used at Gaodal in 1983/84 was equal to: 1.07 X 60 CFAF - 50 CFAF = 64.2 - 50 = 14.2 CFAF/kg of additional fertilizer. For 1984/85, given a producers' price of paddy equal to 66 CFA francs per kilogram and considering that the price Of fertilizer was equal to CFA 90 francs, the net return Of additional fertilizer use at Gaodal, assuming that the marginal product of fertilizerremained constant, was equal to: 1.07 X 66 CFAF - 9O CFAF = 70.62 CFAF - 90 CFAF = -1938CFAF. The same computations were done for the Gangal and Ndiatine producer groups and the results are summarized in 125 Table 21. In order to understand how the recent evolution in relative prices have affected the private attractiveness of fertilizer use in the Fleuve region, we can compute the break-even price of paddy in the three types of producer groups. The break-even price is calculated as follows: Break-even price Of paddy = Price Of 1 kg Of fertilizer _ Marginal Prodflct of fertilizer At Gaodal in 1984/85 the break-even price of paddy was equal to: 90 CFAF/kg of fertilizer = 81.8 CFAF/kg of paddy 1.1O kg rice/kg of fertilizer At Gangal in 1984/85, we have a break-even price of paddy equal to: 90 CFAF/kg of fertilizer = 84.1 CFAF/kg of paddy 1.077kg rice/kg of fértilizer At Ndiatine further fertilizer use did not pay at any positive price Of fertilizer. Moreover, additional fertilizer use should not be encouraged in the Ndiatine producer group where the marginal product of fertilizer is negative. The following comments can be made on the figures presented in Table 21. --First, the highest returns on fertilizer use at the margin were recorded at the Gangal producer group during the two seasons, 1981/82 and 1983/84. Indeed, the households in that group could gain 32 CFA francs for each additional kilogram of fertilizer purchased in 1981/82. Despite the doubling of the fertilizer 126 N.mom- cm N.m~H- oN.N- “Hoe we“ mm\ema~ o.NHN- om o.~c~- oN.N- “Hoe m¢_ em\mmmH a=.ua_uz c.58H- mm c.8mfi- ON.N- “_me we“ Nm\Hmafl ¢.NH- ca e.- o“._ mac omm mm\¢mm~ c.8H om c.88 o~._ 88¢ emu ew\mmmH _ameao o.Nm mN o.Nm o5.“ mac omm Nm\Hmm~ 5.8“- cm w.o~ No.“ mom“ ewe mm\¢mo_ N.¢H om N.¢o No.~ moN_ owe ¢m\mmaH _auo~u H.om mm “.mm No.5 mom" owe Nm\Hm¢H ea~__eeeme 1N.u.zv Nm>zv Aea~.__ueae (me e. ~;\m¥ c. meomaam ace maaoew _a=o_p_uua mucaee < mameo>< buucmsmeocfi umzi umeucfi Lo “mop, (LO oabw> pmcpaeaz, muwmowmh_ea HN mpamh 127 purchase price in 1983/84, fertilizer use remained profitable at Gaodal even though the incremental net return decreased by 50% as a result of the modification in the relative price of paddy rice with respect to fertilizer. A similar phenomenon took place during the same periods in the Gaodal group where the incremental net return drOpped from 30.10 to 14.2 CFA francs. However, fertilizer use remained profitable at the margin for households Operating in the Gaodal and Gangal producer groups. --A completely different situation existed at the Ndiatine producer group, where an increase in the fertilization rate used by 1 kg resulted in a loss Of 154 CFA francs in 1981/82. The situation was even worse in 1983/84 since a net incremental loss of 212 was experienced. These figures suggest that it did not pay to encourage further fertilizer use at Ndiatine. --Given a producer's price Of paddy equal to 66 CFA francs and given that the purchase price of fertilizer was equal to 90 CFA in 1984/85, fertilizer use is not privately profitable at the margin in any producer group of the Fleuve region. Indeed, even at the Gangal producer group where fertilizer use was the most efficient, a net loss of 17.4 FCFA is recorded per kilogram of additional fertilizer. The net loss per additional kilogram of fertilizer is equal to 19.4 CFA 128 francs at Gaodal and 268.2 CFA francs at Ndiatine These findings have important policy implications that will be analyzed in our next section. 0. Implications of the Econometric Model The results of our econometric analysis provide some additional insights into the characteristics of the different perimeters Operating in the Fleuve region. In addition, they have important implications both for the evaluation of the different perimeters and for the various strategies to increase paddy rice production. In fact, a major policy issue deals with understanding the respon- siveness of yields to fertilizers and seeds. The knowledge of the magnitudes and directions of these responses provides an important policy tool to government Officials for their investment strategies. In relation to those issues, our analysis has shown the importance of fertilizers and seeds in explaining variations in rice production in the Fleuve region. At the same time, the analysis has established that despite the importance of modern inputs there is no guarantee that increasing their quantities will result, everywhere, in higher output. Indeed, several complementary elements need to be con- sidered. They include the characteristics of the soils, the adequacy of the plot's grading, the incentive system and other technical, managerial and organizational factors which are important in irrigation. Because of the heterogeneity 129 of the Fleuve region's producer group with respect to those technical, social and environmental factors, the effectiveness of fertilizers, for instance, is very different in many perimeters. In fact, as illustrated by the case of Ndiatine, negative responses are possible. Indeed, it is conceivable that the different inputs to rice production are in the special case Of complementarity that Glenn Johnson characterizes as the "airplane tail" type, as opposed to the more general one which allows for some free disposal.1 Under the ”airplane tail“ type Of complemen- tarity, deviations from the approximate mix of inputs will result in decreases of output. I The negative response of yield to fertilizers recorded at Ndiatine could also happen if farmers who declared that they used the largest quantities of fertilizer did not actually put them on their rice plots whereas those who received the smallest quantities utilized them in their fields. Such a situation would be consistent with a negative elasticity of yields to fertilization rates at Ndiatine. It is difficult to tell what really happened at Ndiatine but our second hypothesis cannot be completely ruled out because we know that at the time of the survey fertilizers were highly subsidized by SAED and the proximity of Mauritania provided some Opportunity to smuggle goods into that country. 1Glenn Johnson's AEC 805 couse notes, 1984. 130 This question brings up the more general issue of the incentive system and its impact on farmers' willingness to use modern inputs. The examples we provided on the private profitability of fertilizer use can illustrate the point. Indeed, for most households producing rice in the Fleuve region, it paid at the margin to use additional quantities of fertilizer in 1981/82, given the characteristics of their production functions and the structure Of relative prices during that year. But for other farmers with different production potentials, using more fertilizer resulted in losses. This indicates that, because of the large degree of heterogeneity of producer groups with respect to agronomic, social and environmental factors, no Single strategy to increase rice production is likely to be successfully in all instances. In addition, the recent evolution in the price Of paddy rice with respect to the price of fertilizer has consider- ably reduced the private attractiveness Of fertilizer use, even for the most successful producer group. In 1984/85, fertilizer use remained privately profitable at the margin for most producer groups, despite the important decline in the purchasing price Of paddy rice. But in 1984/85 fertilizer use was not profitable at the margin in any producer group at a producer price of paddy equal to 66 CFA francs. In fact, given a price of fertilizer equal to 90 CFA francs, additional fertilizer use was unprofitable in 131 the Fleuve region at any producer price of paddy less than 81.8 CFA francs per kilogram. This explains why SAED was having difficulties in finding paddy sellers in 1984/85. whereas farmers were selling paddy rice in the parallel market at 82 CFA francs per kg.2 These findings illustrate the critical need for Senegalese government Officials to set up relative prices consistent with the various components Of their agricultural policy. Finally, there is some justification for adjusting the evaluation methods and the various investment strategies to the diversity of the production environment. More specifi- cally, more attention needs to be paid to localized factors and their compatibility with a favorable production environment. E. Limitations of the Study Before closing this chapter, it is important to analyze some of the problems associated with this study and the ways in which they may have affected our econometric results. The major problems have to do with our data collection methods. Indeed, the data collection, done by one-shot surveys, relied to a very large extent on farmers' memory. This probably constituted an important source of inaccuracy in the data. Senegalese farmers do not generally 2This information on the 1984/85 season was provided by Michael Morris, and ISRA/BAME researcher studying rice marketing in the Fleuve. 132 keep written records on their activities and memory recall remains the most common source of information. In addition to problems associated with recall, conversions from local units, generally based on volume, to standard measurements Of weight can be hazardous because of possible variations in the volume/weight relationship between and within localities in addition to its variability over time. It is important, however, to mention that the same enumerator interviewed all the farmers of the same perimeter. Therefore, it is possible that biases related to the quality of the enumerator did not affect the information collected with a given perimeter, although some of the inter-perimeter variations could have resulted from differences among enumerators. Because of the probable measurement errors that exist in the data, it is important to understand how they can affect our econometric analysis. Several cases of errors are discussed in the literature (Koutsoyiannis, 1983; Pindyck and Rubinfeld, 1981; Kennedy, 1979; and Foote, 1958). Let us examine these cases briefly. --The dependent variable is measured with error: the effect is to increase the error variance. But, if the independent variables are uncorrelated with the error term, the estimated lepe parameters are still unbiased and consistent. 133 --The independent variables are measured with error. In this case, the least squares estimates of the regression parameters will be biased toward zero and inconsistent. The degree of bias and inconsistency is a function of the variance of the measurement errors. --The dependent and independent variables are both measured with errors, with no other error in the equation. In this case, the least squares technique can lead to a bias toward zero of the estimated regression parameter and to inconsistent estimates. But, if the variance in the measurement error of the independent variable is known, it is possible to obtain consistent parameter estimates. In addition to these problems, the question of the representativeness of the 1981/82 season can be raised. However, given the relative independence Of irrigation activities on rainfall, it seems reasonable to think that the 1981/82 season represented a typical year. Nonetheless, it is important to emphasize the experimental nature of this study and the need to interpret the results of the econo- metric analysis with caution. DeSpite its problems, however, the analysis provides a first approximation of the relationships involved in the Fleuve region's rice production systems. More importantly, the hypotheses made here can be tested and improved in other studies. Sugges- tions for such further studies are presented in the next chapter. CHAPTER SEVEN SUMMARY, CONCLUSIONS AND RECOMMENDATIONS A. Introduction The Objectives Of this final chapter are to recapitulate briefly the issues dealt with in this study, to summarize the major findings and to draw some recommendations. The series Of droughts in the 1970's and the consequent food crisis experienced by the sub-Saharan countries have inspired ambitious programs aimed at achieving food security. The exploitation of the Senegal River's resources constitutes a major component of such programs carried out by the countries along the river. The development of irrigation schemes, which allows reduction in the weather- related fluctuations of production, is perceived as a major means to achieve the stated Objective. But because of the scarcity of local resources and the need for their efficient allocation, it is important to analyze how alternative schemes compare in promoting food security. Food security is, however, a complex notion and there is no easy and simple way to measure it. Yet, the way food security is perceived by government officials determines the policies implemented. In this study, we have selected the per capita availability of cereal in producing households as a major 134 135 index of food security. However, the per capita availability of cereal in the Fleuve region is determined by farmers' production and several categories of transactions. Inasmuch as farmers' production remains the major determinant of cereal availability, our analysis has focused on the various elements that affect its performance in the Fleuve region. Finally, because Of the important role played by irrigated rice in the Fleuve region's production system and because of the high value placed by Senegalese government officials on rice production, this study has put a considerable emphasis on assessing the performance of the different irrigation schemes in the region. Our major findings and conclusions are summarized in the next section. B. Summary and Conclusions ‘Our brief historical analysis has shown that attempts to develop irrigation in the Senegal River Valley are not new. In fact, as early as the nineteenth century, the French colonists introduced irrigation into the Fleuve region. The different projects implemented throughout the past two centuries have had various degrees Of success. These projects have generally provided the technical foundations for the more recent irrigation programs developed in the region. Indeed, SAED'S experience with the large perimeters in the 19605 and 19705 represented the latest forms of the colonial technological legacy. In fact, SAED'S operations have gone through several changes in the 136 irrigation techniques used, the conception of the schemes, as well as in the modes of management. The major technological shifts have been towards a better control of water and an adaptation of the irrigation techniques to the particular physical characteristics of the Senegal River Valley. —In this respect, the physical environment, along with the decision of the Senegalese authorities to develOp a rice industry able to substitute for the increasingly large quantities of this commodity imported annually provide the rationale for the earlier model Of large scale and highly mechanized perimeters. But the performance of large perimeters has not been particularly impressive, as they required large subsidies from the government. Meanwhile, farmers who were left with little initiative did not seem to benefit very much from the experience. On the other hand, the smaller perimeters, which are more recent and involve more participation from farmers, thanks to their labor-intensive techniques and to the more decentralized management, seemed to perform better. Our descriptive analysis of the two types of perimeters during the 1981/82 season has allowed us to discover several interesting features of cereal production in the different zones of the Fleuve region. The most noticeable feature has to do with diversity of the crOpping structure in the different zones. Indeed, such a diversity is apparent in the evolution from the quasi specialization in rice 137 production by the Delta zone's farmers to the combination Of irrigated farming with rainfed and flood-recession agriculture in the Matam zone. Yields were found to be, on the average, higher in small perimeters. But, thanks to the larger size of plots, tOtal production of rice per household was more important in large perimeters, resulting in higher output per capita. However, rice production constituted only one component of cereals availability in the Fleuve region. As we have seen in Chapters 3 and 4, some farmers practiced multiple cropping, mainly in small perimeters where they combined irrigation with flood-recession and rainfed agriculture. Therefore, the quantities produced in the three types of farming should be included in a more precise assessment of the overall availability of cereals. But, as indicated by the number of households involved with the different crOps, the proportion of farmers who raised all the cereal crops was relatively small. Moreover, a large variability existed among individual households in terms of paddy rice production and yield. Such a variability was hypothesized to be related to the heterogeneity of the Fleuveregion's households with respect to physical, technical, economic and sociological factors The econometric analysis was undertaken to provide an approximation of the quantitative relationships involved in paddy rice production in the Fleuve region. The analysis 138 has allowed us to determine how differences in resource endowment, along with other localized factors, explain variations in production. More specifically, it has been possible to isolate the effects of several inputs on production. In this respect, the importance of labor availability, fertilizer and seed use in increasing rice production were Shown through the derivation Of the elasticities Of output with reSpect to these inputs. As anticipated, the efficiency of modern input use varied significantly among several producer groups. The variations were apparent not only through absolute differences in production, but also via the changes in the elasticities of output with respect to various inputs in the different producer groups. These findings confirm the high degree Of heterogeneity in terms of technical, environmental and social circumstances. They also have important implications in terms of the methods used to evaluate the performance Of the irrigated perimeters. Indeed, almost all evaluation methods require an approximation Of the production function involved. In the context of our study, the conceptual problem is to discover the relationships between several characteristics Of the irrigated perimeters and cereal availability. Yet, most of the cost-benefit analysis conducted on the perimeters is based on the simplistic assumption of an average yield for a given type of perimeter. Moreover, our analysis suggests 139 that even the sensitivity analysis generally undertaken to allow more realism does not fully account for the hetero- geneity of any given perimeter. This point is extremely important for the investment strategies designed to increase rice production in the Fleuve region. Indeed, the large degree of heterogeneity of the different perimeters implies that there is no unique strategy to increase production in the Fleuve region. Rather, it seems more appropriate to design and implement policies relevant to the particular circumstances of producers. In our next section, we shall provide more Specific recommendations. C. Recommendations He Shall divide our recommendations into two parts. In the first part, we will deal ‘with some policy recommenda- tions. In the second part, we will suggest some issues that need to be investigated by future studies. 1. Policy Recommendations Our policy recommendations are suggested by the findings Of our study and the constraints imposed by Senegal's overall macro-economic Situation. The recommenda- tions are relative to the conditions required in order to increase cereal availability in the Fleuve region. Some suggestions are also made with reSpect to the institutional reforms that are currently being introduced in Senegal. 140 The current strategies designed by Senegalese government officials in order to increase cereal production rely on plans to increase irrigable lands by 5,000 hectares a year. Given the very large costs involved in the development of new perimeters and considering the financial problems being experienced by the state, the realism and feasibility of those strategies are highly questionable. Indeed, the cost issue is a crucial one and it involves not only the expenses resulting from the construction and the maintenance of new perimeters but also the opportunity cost of giving up more effective options. One option would be to increase the productivity of already existing perimeters. In this reSpect, the results of our investigations can suggest some recommendations. We have seen in Chapter 2 how SAED was able to bring noticeable progress in the performance of large perimeters thanks to the elimination of financial, organizational, and technical bottlenecks. Furthermore, higher yields were consistently recorded in small perimeters where farmers have more responsibilities and are more motivated. Given the size of individual plots in large perimeters, significant increases in production could be obtained by achieving in the large perimeters yields of paddy rice comparable to those recorded in small perimeters. Our analysis shows that in most producer groups, labor, fertilizers and seeds have significant impacts on production. Furthermore, the 141 technical efficiency of those inputs might be improved in most producer groups by eliminating the technical, environ- mental and social constraints which operate at the local level. An identification of the localized factors should allow the design of selective strategies, based on the concrete conditions and needs Of each perimeter and producer group, in order to increase yields in currently existing perimeters. Another aSpect of our alternative strategy would be to modify the current approach based on the double speciali- zation in rice production and irrigated farming. Our descriptive analysis has shown how SAED's activities were focused on irrigated paddy rice. Yet, the analysis of the structure of cereals' availability in the Fleuve region reveals the important contribution of millet, sorghum, maize and cowpeas grown in the rainfed and flood-recession agriculture. This militates in favor of seeking a simultaneous development of the different types of agriculture. We have seen that in most zones of the Fleuve region, farmers combine the different types of farming and this results in seasonal labor bottlenecks during the rainy and winter seasons. In this reSpect, the introduction of animal traction, which is almost nonexistent in the whole region as _we discovered in our descriptive analysis, might offer an effective and less expensive means to overcome the 142 current conflicts existing among the different forms Of agriculture in terms of labor allocation. However, other conditions must be met in order to guarantee the simultaneous 'development Of irrigation, flood-recession and rainfed agriculture. Among these conditions, we can mention the need to improve the input delivery system and encourage a market for cereals other than rice, the development of high-yielding varieties adapted to the region and a favorable structure of relative prices. The question of relative prices deserves special attention as they relate to the social and private profitabilities of cereals production in the Fleuve region. From society's point of view, the question is whether it pays to produce rice in Senegal given the possibilities to import the commodity at a lower cost. Indeed, to the extent that Senegal does not have a comparative advantage in rice production, Senegalese society may be better off by using resources saved to produce more goods and services other than rice. Such an option would contribute more effectively to the country's food security. However, the issue is not entirely technical, as welfare and political considerations could justify options that would not prevail on purely economic grounds. Moreover, because of the lack Of homogeneity between the 100 percent broken rice imported in Senegal and the long-grain rice produced locally, there could be some economic justification for continuing to 143 produce the commodity in the Fleuve region. Indeed, given the fact that it has a higher price in international markets, the locally produced long-grain rice could be exported while Senegal continues to import the 100 percent broken rice in order to satisfy domestic food requirements. This scenario would allow the country to pursue its objectives of food security while improving Senegal's balance of payments position. But, because of the large quantities of cereals imported annually, domestic production would have to be increased. This brings up the need to use modern inputs in order to increase production and the question of the private profitability of such actions. In this respect, our analysis has shown that the use of additional quantities Of inputs could contribute Signifi- cantly to produCtion increases. However, whether farmers use additional quantities of inputs or not depends largely on whether it pays to do so. In fact, it seems reasonable to assume that they would not use additional inputs unless they could expect to get an incremental value in their production at least equal to the cost of acquiring additional inputs. Yet, as we have shown it in Chapter 6, given the characteristics of the production equations in the Fleuve region, and given the marginal product of fertilizer, in 1984/85 it did not pay to use additional fertilizer at the margin in rice production. This is why, in a recent study, 60 percent of the Fleuve region's farmers cited high 144 prices as the reason (why they did not use more fertilizer this year.1 This has some important implications for the strategies used to increase production. In the short run, the prospects of increasing farmers' income through significant shifts in the production function are relatively limited. Therefore, the Social profitability of the increased use of modern inputs depends on the relative price of output to inputs. The issue involves some fiscal and welfare dimensions which need to be considered along the more global issue of the social profitability of producing rice in Senegal. But some basic conditions are required in order to have a coherent policy. Indeed, it is not realistic to expect farmers to buy fertilizers at full cost if they do not get prices for paddy rice which make it privately profitable to use fertilizers in order to increase production. The argument calls for a greater coherence in the Senegalese officials' pricing of inputs and outputs. In the long run, as technological innovations made possible by research on new varieties and production techniques allow increases in production at lower costs, more policy options will be available to government officials. Indeed, farmers will be able to increase their total revenues through larger quantities produced and sold. In addition, to the extent that they involve cultural 1See Eric Crawford and Valery Kelly, “A Field Study of Fertilizer Distribution in Senegal, 1984: Summary Report,“ BAME, November 1984, p. 22. 145 design, as Shaffer argues, policies could be aimed at reconciling the national demand of cereals with the production potential of the country. Meanwhile, the conditions of coherence and consistency apply also to the different policy and institutional reforms planned by Senegalese government Officials. In this reSpect, even though the need to cut costs can be a legitimate reason to seek a smaller involvement of the state in production and marketing activities, it is important to provide farmers the training programs they need in order to increase their managerial skills and their technical know-how. In fact, the movement toward a greater autonomy of farmers can only be successful if they are prepared to be viable economic actors. This highlights the critical need for more research oriented toward farmers' needs. Even if the state does not get directly involved in production and marketing activities, it will still have to provide farmers' organizations and the private sector the incentives to carry out these important functions. Several important issues are involved and more research is needed on them. In our next subsection, we suggest some issues that deserve further investigation. 2. Needed Research The urgency to tackle the problems resulting from the current food crisis and the complexity of the questions involved require that more research be done on several issues in order to successfully guide future policies. We 146 will outline here three general themes that require some Special attention. The first research issue deals with the question of “food security“. A better definition Of the notion, including more macro-dynamic perspectives, seems to be particularly needed. In this respect, we can mention the work initiated by Frederic Martin, whose results should provide some useful insights on the issue.2 But, as indicated earlier, the question is neither simple nor is it entirely a technical issue. In fact, the way in which this issue is settled will largely determine whose interests count. In addition, an improved understanding of the issue could facilitate the determination of strategies more appropriate to Senegal's situation. The second issue has to do with a better assessment of the production capacities of different zones Of the Fleuve region. An identification of the localized factors which affect rice production in the Fleuve region would be extremely useful. Indeed, a better knowledge of these factors would allow SAED and the other participants of the Fleuve region's production system to increase the efficiency of resource use. In this respect, the findings of the 2Frederic Mratin, “Analyse des Avantages Compares Dynamiques Sous Incertitude du Senegal Dans le Cadre d'Une Strategie de Securite Alimentaire. Proposition de Recherche,” Dakar: BAME, ISRA, Janvier 1985. 147 farming system research team working in the Fleuve region could be very useful. Finally, in the perspective of ongoing reforms toward greater involvement of the private sector and farmers' organizations, the 4 role of training and. education is critical. Indeed, the large increases in production required to meet the country's needs can only take place if participants are trained and motivated to adopt and assimilate new technologies. This raises the issue of institutional linkages between training, research, extension and the political process. Further studies are needed on the functions and interactions of these institutions. Those studies can benefit from the lessons of the errors and problems that we had in this one because of the lack of a clear conception of its objectives and analytical procedures. In fact, most of the problems could have been avoided, had a complete planning of the whole research process taken place before any data collection was done. Such a process would have allowed adjusting the data collection to clearly defined Objectives Of the study, the method of data analysis and to the conditions under which farmers Operate. In this respect, a greater familiarity of researchers with the milieu of the study, the pretesting of the questionnaire and a greater consideration for analytical and processing capacities would have allowed us to avoid collecting unnecessary data. A P P E N D I X A THE QUESTIONNAIRE USED 149 - - .. - ..._.. ‘1. I I _I Régia: - :3. I. ‘1‘} ‘5. ' _I__'_I - 7. 1 _I..__I , , $ 9. an vide “ .13;1_.__.1m1m:ibiznsteauverso . . II. I _‘_I_:_I_ - I _I_ : . I Superficie 61 hectares (1e point tepcesaite la margae décirrale) . 45. cu- vide . -_ 11m - - ' 17.1_1._.'_1___1o.me1t.~:saewenxe 21. I_I_I migine : Vbir les codes an verso 23. I__I__I_I Pris: 61.1 “kg: pan: 1 et 2. ptendte 1e prix de vaite mitaire de la atcductionr ' 26. I__I__I_I ___I thite's d'engrais utilisées (kg) Mettte des zeros s'il n 'y a pas d'engzais I). I__I_I Psi: du Kg 32. !___I Praduit White pm: W I 51. 1e produit eat 33. I__I " " ' " allure I utilisé, mettre I 34. I__I ' ' ' . " témlte I Skmmettre O 35.. C230 vide ’ mmfiaamwmms 35. 1 G._.,_1_"_._._.__1___1 Ptoducticn en kg :41. _I__I___I_I mantite's vendtm aux cooperatives en kg ' ' . 45.! I I I I WdtésvmdeamScciétésdedéveloppamtmkgv' I e'mantités vendues aux particuliezs 61 kg - I I I I V‘ihleix‘totale des’ ventes 'aux partimliets a: centains de , trans. Par ample ppm: 500 _frs, mettre 005 1 1 1 1 1 i’omtite's achetéesdanslevillagemkg. I I I I ‘,.‘.'ale11t totale enoentaines de francs. 1 1 1 1 1 "mattitésachetées botsduvillageenkg ' m1: mule en caninesde francs. I I I I I 1 mm lee ms d'achat de :12, indiquer les giantités de ti: Paddy (non de'ooztiqué) sur 1:: total achete' e1 Kg. I I I_I' I'mautizPeddymcuitainesdetrm. I_I_I___I mutual. domées came cadeau en dizaines de mg couple pour 40 kg, écrire (1)4 ’ 31 cas de bacin arrondir a 1' unité le plus prome Btu-pie : pour 48 kg écrize CD5, pour 21 kg écrire 002 I 101113 Siledimestdamée,mettreisixmmettxeo 1 3 5 7 9 10.. 12 14 16 17‘ 18 19 20: 21” I\) [\I *J (h \n 4:. I‘) N N (‘3) 150 III. 1.1.110 "VILLAGE" ¢—=-=-=—=—=-=—=- Inzt'rzngglczi !.A;J___J Région - Zone Vbir codes au verso !___I_I Périmétres ou Secteur ' n n n n I... _! Grouvements de Producteurs. " n .. n !___1___! Ndieul ou Foyré n n Case vide HAIK-D'OEUVRB 3___!__! Population du :‘ldieul ou Foyré ! i i Kain-d'oeuvre disponible I ' 1 1301111119 de saisormiers Cale vidd '"NIVZAU TECHNOLOGIQUE Kettre 1 dans 1e (3) can concerné (s) Kettre 0 dons les,gu§re3.c§s., , ! ! Culture munuelle 3 I Traction bovine ! I Traction equine at on asine 1 I Culture mécanisée Cece vide STRUCTURE DE L'EUDSTTELQEQ iettre 1 cans 12(5) cas concerné(s) Eattre 0 flags-les autres cos. 2 .2 Bette sur le travail du sol ! ! Bette sur l'irrigation I i Détte sur ln'livréiécn d'en _.is !__"}~ Detteosur la livraison des semences .3 1 Dette sur la livraison de produits phytosanitaires I 1 Dette sur le battage Case vide ! I ' ' Remboursement on nature ! tot re 1 :i I E E I ! ! Quantités remboursées en kg 1 _! Hemboursement en numéruire lKettre 1 fire 0 I 1‘ I. I ! E I Iontant du remboursement on francs. c'est la cas. oi c'est 19 cos. Sinon met Sinon met- oouoam-wai—A CONOSW LISTE DES CULTURES Riz Mais Sorgho Mil Fonio Niebe Ble Autres CAP-VERT CASAMANCE DIOURBEL FLEUVE SENEGAL-ORIENTAL SINE-SALOURA THIES LOUGA oowmu-i 151 LISTE DES ORIGINES 1 - Personnel 2 - Autres paysans 3 - I.S.R.A. 4 - Cooperative 5 - SONAR 6 - P.R.S. 7 - Ble PIDAC 8 - N.A.C. 9 - SO.DE.VA 10 - S.A.E.D. 11 - SODEFITEX 12 - Autres - Grands Perimetres du Delta - Grands Periretres de la Moyenne Valley. - Petits Perimetres de la zone de Aere Lao - Petits Perimetres de la zone de Matam - Zone de cultures traditionelles A P P E N D I X B CODES REPRESENTING ZOMES, PERIMETERS AND PRODUCER GROUPS 153 Zones Perimeters Producer Groups 4.1 Delta 01 Lampsar 02 Ndelle 01 Lampsar 03 Thilene O4 Boundoum Peulh 05 Diagambal 06 Boundoum Barrage 1 O7 Boundoum Barrage 2 02 Boundoum 08 Boundoum Est 3 O9 Boundoum Nord 4 10 Boundoum Nord 5 11 Thiager 12 Mbagam 03 Richard Toll 13 Khor 14 Ndiatine 15 Thiagar CT 4.2 Large Perimeters of the Middle Valley 16 Gae 17 Gae 01 Dagana 18 Gae 19 Gae 20 Gae U'Ibwmi-I 21 Niadane 3 22 Niandane 13 02 Nianga 23 Guia 5 24 Guia 7 25 Cuma 2 26 Gurde Chantier 27 Diama 03 Guede 28 Fresbe 29 Guede Village 30 Agnam 4.3 Small Perimeters of Aere Lao 31 Nianga Ndioum 32 Boade 01 Ndioum 33 Lidoube 34 Thioulbe Galle 35 Nienga Edy 36 Pete 37 Gangal 02 Pete 38 Toufne Gande 39 Tikite 4O Mboumba 154 Zones Perimeters Producer Groups 03 Demete 43 4.4 Small Perimeters of Matam 01 Matam 43 02 Boki Diawe 53 03 Nguidjilone. 58 NOTE: The producer groups numbers 12, excluded from the analysis because of large number of missing values in these Demete Data Afaybe Cascas Thioubalel Hassetake Matam 5 Matam 1 Matam 2 Diamal 1 Tiguire Cire Ndouloumadji F.2 Nabadjimbal Dounga 0.1 Mbakhna Kobilo Sedel 2 Nguidjilone 1 Nguidjilone 3 Doundous Gaodal 15, 47 and 48 were the presence of a groups. 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S... .5... .-.. 2... 5...: .2... 2.... ea... 2.... 2.. =3... .2... 2.. is: .33. 9:3 5.... 3.69.. 50.82:... 2.3.. 8.32;... ..... 3..- .52 3.... 3... 23.. E... 3..- ea. 3... 8. ea .2... 2. a... 8.... m_.. a=m .2... 8.1 33m mg.5n.cu> .w...e_z.....r§ E. 2.2.... -..EFI.E LEEP..E.._E..: £3. ii. mafia—g) ziluzui— 0,. 3.2.1.3.... IIIII II... II VII-‘OI'IIIIII1".-.501‘0'1901lilt- iII-o- '1..Iv‘u.IvIIqu. I'D .iI.II I-OI III'I'IIIOO III- 1. =o..:l..a. as. .o m..=msz ..u u.- ! IIIOIIInI . a=oec0=o= III I..- 1 I II! a. e— n. N- _— 39.1.... eo..ozsu Ii III'O...‘ where: INTG1,, 1N182,, The other 157 Interaction between the fertilization rate used by household, and the presence Of the household in producer group j 1N181,, = ENGUNIT, * De, 1 = 1, 2, 3 . . . , 1366 3.31, 2, 3 e o e g 56 Interaction between the seeding density used by the household, and the presence of the household in producer group j. variables are defined as previously. 158 C.2 Presentation of our Most Satisfactory Equations (Standard errors are shown in parentheses) I. Estimated Area Equation LSUP = -1.68 + .221 MODM + 1.580Z, + .620Z2 - 1.020Z3 (.11) (.02) (.12) (.12) (.12) + .69061 + .25062 + .92DG3 + .25D64 + .67D65 + 1.08066 (.11) (.11) (.11) (.11) (.13) (.11) + .68DG7 + .67D68 + .75D69 + .86D610 + .97DGll (.11) (.11) (.11) (.11) (.11) + .140613 .32DGl4 + .59D616 + .680617 + .73DGl8 + .29DGl9 (.11) (.11) (.11) (.11) (.18) (.11) + .50D620 + .48D621 + .730622 + 1.200623 + .62D624 (.11) (.12) (.12) (.20) (.14) + .96D625 + .430626 - .71D627 - 1.11D628 + .780629 - .18D630 (.14) (.10) (.11) (.10) (.10) (.10) - .110631 + .O7DG32 - .410633 - .21D634 + .05D635 + .77DG36 (.12) (.12) (.12) (.12) (.12) (.12) + .88D637 + .96DG38 + 2.540639 + 1.53D64O + .23D641 + (.12) (.12) (.12) (.12) (.12) + .080642 + .48D643 + .640644 + .48D645 - .62DG46 - .29D649 (.12) (.12) (.12) (.13) (.49) (.21) + .ochso + .260651 + .480652 - .090653 + .160654 (.15) (.15) (.15) (.15) (.15) + .41D655 + .06D656 + .24D657 - .O9D658 + .130659 (.15) (.15) (.16) (.15) (.15) N . 1366 R2 = .85 F = 130.75 II. Estimated Yield Equation LRDMT, a 4.95 + .38LEN6U + .26LSEMU, + .1OLMODM, - .46DZl (.04) (.06) (.02) (.39) - .29022 - .29DZ3 - .011NTG31 - .0021NTG32 - .06INTG33 (.39) (.15) (.02) (.02) - .17INT634 - .O3INT635 - .06INT637 - .251NT638 - .121NTG39 (.02) (.02) (.02) (.02) (.02) - .09INTG310 - .O4INT6311 - .19INT6313 - .46INT6314 (.02) (.02) (.02) (.03) and (which is .O4INT6316 (.02) .211NT6320 (.02) .OBINTG324 (.03) .02INT6328 (.02) .111NT6332 (.03) .13INT6337 (.03) .23INT6341 (.02) .061NT6345 (.02) .OZINT6351 (.03) .13INT6355 (.02) .121NTG359 (.02) = 1342 The variables were defined in the text yield producer Therefore the recorded by R2: equations, group located in other .O9INITG317 - (.02) .O7INT6321 (.02) .17INT6325 (.02) .O7INT6329 (.02) .OOlINT6334 + (.02) .OO7INT6338 - (.02) .OZINTG342 (.02) .08INT6346 .021NT6352 (.02) .02INT6356 (.02) + + + + .OOOO9INT651 (.08) .60 and the the area allocated achieved by farmers Operating in the 4th farmers 159 .11INTG318 - .IOINTG319 (.02) .02INT6322 + .04INTG323 (.04) .OZINT6326 + .02INT6327 (.02) (.02) .O7INTG33O + .121NT6331 (.02) (.03) - .006INTG335 + .01INTG336 (.02) (.02) .381NT6339 - .061NTG34O (.03) (.03) .07INTG343 + .0031NTG344 (.02) (.02) .111NTG349 + .OSINTG350 .161NT6353 (.02) .O4INTG357 (.03) F = (.03) .OBINT6354 (.02) + .OIINT6358 (.02) 34.07 dummy variables for the 60th 4th zone were “left to paddy rice and the yields the from which the area devoted to the same are problems of interpretation resulting allowed from 60th zone) represent the standard crop and this in both our area producer group the yield to deviate. choice and 160 the arbitrary character Of selecting one producer group as a standard instead of another justify the transformation of the two equations. The transformation will make the region's average in area cultivated and yield be the reference of the groups' and zones' variations. The transformation is presented in Appendix C.3 161 C.3 Transformation Of the Dummy Variables' Coefficients The transformation procedure takes advantage of the notion that the average of indexes is equal to onel' In our case, we ewant the region's average to be the base; therefore, we restrict the sum of each coefficient and a constant to be equal to 1. The value of the constant can be derived as a linear combination of the initial coefficients. The procedure is used here to transform the dummy variables Of our area and yield equations. C.31 Area Equation. The area equation involveS' two categories of dummy variables. -The first category represents the different zones Of our study. Since we have four zones and the last one DZ4 was used as reference, it does not appear in the original equation. -The second category of dummy variables represents the 55 producer groups covered by our study. The transformation consists of deriving a constant for each category of dummy variables and using these constants to calculate the new coefficients. 1Suits uses seasonal indexes to illustrate the application of his transformation method to exponential demand functions. He follow the same rationale here. See D.G. Suits, “Dummy Variables'. 162 C.311 Derivation Of the new coefficients of the dummy variables representing the different zones. We want a set of coefficients b*, = b, + h determined SO that '3b*j = ebj + h = 1 or erj T h) = 4 where bj the estimated coefficient Of DZj h a constant J = 1, 2, 3, 4. Since ebj + h = ebJeh, the appropriate value for h is given by h = Ln [4/Zeb11 we have 4 Zkbj = [4.8549 + 1.8589 + .3606 + 1] = 8.0744 1 Therefore h = Ln [4/8.0744] = Ln(.4954) = -.7024 -.70 The value of h is used to generate the new set Of coefficients for the dummy variables representing the different zones: b1=b1+h 6*, - 1.55 - .70 = .83 b*2 = .60 - .70 = -.10 6*3 = -1.02 - .70 = -1.72 * b 3 -. =... 4 0 70 70 Each of these new coefficients represents the amount by which the Specific effect of the corresponding zone deviates from the average effect Of the region. 163 C.312 Derivation of the new coefficients of the dummy variables representing the different producer groups. The procedure is similar to the one used to get the transformed coefficients Of the DZ,'s. The new set Of coefficients is defined as: Ck* = Ck + l and satisfies eIck T I) = 56 where Ck the estimated coefficient of the group 06, l a constant k = 1, 2, 3 . . . 55. The appropriate value for l is given by 1 = ln [56/2'561'] we have: 56eCk = 106.8785 k=1 It follows that: l = ln [56/106.8785] = ln(.5239) = -.6463 2 -.65 This computed value Of the constant l is used to get the transformed coefficients for the dummy variables representing the producer group. C.313 The Transformed Area Equation LSUP = -3.03 + .22 IMODM + .85DZl - .10DZ2 - 1.72D23 - .7ODZ4 + .O4D62 + 27063 - .04064 + .02065 + .43066 + .05D67 + .02068 + .10069 + .210610 + .32D611 - .510613 - .970614 - .06D616 + .030617 + .080618 - .36D619 - .150620 - .17D621 + .080622 + .550623 - .03D624 + .310625 - .220626 - 1.360627 - 1.76D628 164 + .080629 - .830630 - .76D631 - .58DG32 - 1.06D633 - .860634 - .700635 + .120636 + .230637 + .310638 + 1.890639 + .88DG40 - .420644 - .570042 - .17DG43 - .OlDG44 - .17DG45 - .030646 - .94DG49 - .630650 - .350651 - .170652 - .150G53 - .480654 - .240655 - .590656 - .410057 - .740658 - .520659 - .650660. R2 = .85 The sum of h and l is subtracted from the estimated intercept of the area equation. The new intercept is given by: -1.68 - 1.35 = -3.03. 0.32 Transformation of the yield Equatoin's dummy variables. The yield equation includes dummy variables representing the four zones of the study. These variables are transformed below according to the same principles used for the area equation. He ‘want a new set of coefficients b*i = b- ,+k determined so that: ekéebj = 4. It follows that: k gln (4/Zebj) He have ZIeb1 = [ .6376 + .7483 + .7483 + 1] = 2.1342 The transformed values of the DZ,'s coefficients are then computed ‘i = 045 + .63 = 018 b 2 = -929 + 063 3 034 165 -.29 + .63 .34 ‘k b 3 * b4=0 +063 .63 The value Of k is subtracted from the estimated constant term to get the new intercept-standard correSponding to the region's average. 6* = 4.89 - .63 = 4.26 Finally, Since the new coefficients were derived as a combination of the initially estimated parameters, their standard errors can be calculated from the variance- covariance matrix of the estimated coefficients. But, because Of the large number of computations required, we did not calculate the standard errors of the transformed coefficients. SELECTED BIBLIOGRAPHY Afrique Agriculture. "L' Autosuffisance Ahimentaine: Le cas du Perimetre Irrigue de Mbane au Senegal.“ NO. 100 December, 1983. 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