Effects of circular agriculture practices on the profitability of maize in Nakuru County, Kenya.

Abstract

Circular Agriculture practices have become the most effective strategies for enhancing profitability and economic sustainability. The agriculture sector can embrace circularity through the use of farming practices such as mixed crop-livestock, organic, and intercropping. However, there is limited information on the profitability of these farming practices within the context of circular agriculture. To fill this gap, this research examined the effects of circular agriculture practices on the profitability of maize in Nakuru County, Kenya.  The data was collected through face-to-face interviews using a semi-structured questionnaire. We analyzed this data using gross margin analysis and multinomial logit. Using a multinomial endogenous switching regression model, significant variables such as age, farm size, household size, education, experience in farming, land tenure, information access, group membership, and access to credit facilities influenced the uptake of a choice of circular agriculture practices among smallholder farmers. The results for the gross margin analysis show that most of the circular agriculture practices were profitable. Furthermore, a combination of intercropping and mixed farming was the most profitable. The results for ATT and ATU were positive and negative, suggesting that some smallholder farmers achieved higher gross margins while others experienced losses depending on the circular agriculture they adopted. The average Treatment of Treated results indicate an income effect of 2176.01KES/acre for the adoption and implementation of a combination of mixed farming and intercropping followed by intercropping with 731.55KES/acre. Thus, it follows that farming experience, farm size, group membership, and access to credit have a significant influence on the uptake of circular agriculture practices. In addition, practicing a choice of more than one circular practice option can yield a higher gross margin for smallholder maize farmers. Therefore, this study recommends that agricultural policymakers should set comprehensive policies that target all age groups of farmers, ensure land entitlement, promote farmer group participation, provide training to farmers, and provide credit facilities that support circular agriculture farming.

Keywords: Circular agriculture, profitability, sustainability, productivity, policies

DOI: 10.7176/JBAH/14-3-05

Publication date: October 30^th 2024