Economic analysis of climate smart agriculture practices among smallholder farmers in Kilosa district

Abstract

Climate Smart Agriculture practices are climate change impact adaptation options which have been emphasized in REDD+ villages in Kilosa District, but the cost and benefits of particular CSA practices are not well known by most of the farmers. The specific objectives were to identify climate smart small scale agriculture practices in the study area, to compare the profitability of different climate smart agriculture adopted by small holder farmers, and lastly to identify factors influencing farmer's decision to adopt climate smart agriculture practices. Questionnaire was administered to a total of 100 households. A large proportion (50.9%, 43.8% and 43.6%) of the households in Ulaya- Kibaoni, Nyali and Dodoma-Isanga villages respectively reported crop rotation to be practiced by majority of the households. Cover crops were practiced by 3.6%, 16.7% and 2.6% of the households in Ulaya-Kibaoni, Nyali and Dodoma-Isanga villages respectively. Cost benefit analysis was used to compare profitability of the CSA practices. All practices had positive NPV and BCR~ 1; this means that they were economically profitable. Reduced tillage had NPV of TZS 2 024 585.4/= per hectare and high cost of production but it had higher returns than crop rotation and cover crops practices. Conventional farming was found to be less profitable with NPV TZS 940 569.92/= per hectare. Factor analysis was used to identify factors which influence farmer's decision in the adoption of CSA practices. The results show that economic factor have high loading factor 0.893 to 0.688 implying that variables loaded to this factor have more influence on the decision of farmers to adopt CSA practices, other factors include information, social factors, and environmental concern. Most CSA practises has high investment cost. Training to various CSA practices which are cost effective in terms of implementation and suit their ecological conditions is important.