@article{Adane:249683,
      recid = {249683},
      author = {Adane, Tuffa Debela},
      title = {Impact of Perennial Cash Cropping On Food Crop Production  and Productivity},
      journal = {Ethiopian Journal of Economics},
      address = {2009-12},
      number = {683-2016-46888},
      series = {ETHIOPIAN JOURNAL OF ECONOMICS},
      pages = {116},
      year = {2009},
      abstract = {The argument for promoting cash crops in developing  countries has generally been
based on their contribution to  small farmer incomes and their impact on other
household  activities such as household crop production through  interlinked markets.
While these arguments are supported by  some empirical results, there is little
information on the  impacts cash cropping can have on these household  activities in
the absence of interlinked markets. In  addition, the impacts of cash cropping may
depend on the  types of cash crops studied, time and place. Perennial cash  crops
(PCC) can relax household liquidity constraints for  purchasing productive inputs,
maintain soil fertility and  moisture and save inputs such as seeds and draft  power,
which can be used for food crop production even in  the absence of arrangements for
interlinked markets. In  this study we build on previous studies by developing  key
hypotheses by which PCC (Chat, coffee and sugarcane)  affect food crop production
and the implication for  household food security. In addition, we look at the  link
between perennial food crop, enset (Ensette  venttricosum), and other annual food
crops. We empirically  measure these effects using survey data on 150  rural
households collected in 1999 in Ethiopia. Our results  indicate that-after controlling for
conventional inputs,  household wealth variables, education and other  variables,
higher chat (Catta edulis) production is  associated with reduced value of food crop
yields and total  value of food crop production. On the other hand, higher  sugarcane
production is correlated with higher value of  total food crop production and
productivity. Moreover, more  intensive coffee production is associated with  more
intensive enset production. However, production of  coffee and enset do not have
significant effects on food  crop production and productivity. These results  suggest
that while farmers can gain from sugarcane  production through cash income and its
impact on food  crops, coffee and enset can be produced to bring additional  income to
the household at no significant cost to food  crops. The real impact of chat on the
welfare of households  should be viewed in terms of its opportunity costs and  its
contribution to household income},
      url = {http://ageconsearch.umn.edu/record/249683},
      doi = {https://doi.org/10.22004/ag.econ.249683},
}