Can Enhancing Efficiency Promote the Economic Viability of Smallholder Farmers? A Case of Sierra Leone

Silvia Saravia-Matus, T. S. Amjath-Babu, Sreejith Aravindakshan, Stefan Sieber, Jimmy Saravia () and Sergio Gomez Y Paloma
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Silvia Saravia-Matus: Natural Resources Division, United Nations Economic Commission for Latin America and the Caribbean (UN ECLAC), Vitacura, 3477 Santiago, Chile
T. S. Amjath-Babu: International Maize and Wheat Improvement Center (CIMMYT), Dhaka 1212, Bangladesh
Sreejith Aravindakshan: International Maize and Wheat Improvement Center (CIMMYT), Dhaka 1212, Bangladesh
Stefan Sieber: Leibniz Centre for Agricultural Landscape Research (ZALF), 15374 Muencheberg, Germany
Authors registered in the RePEc Author Service: Silvia L. SARAVIA-MATUS

Sustainability, 2021, vol. 13, issue 8, 1-17

Abstract: By developing meta-frontier efficiency and structural equation models, the paper examines whether farm economic viability is positively associated with technical efficiency in a highly food insecure context, such as that of rural Sierra Leone. The findings show that technical efficiency can be a sufficient but not necessary condition in determining economic viability of smallholder farming. It is possible to breach reproductive thresholds at the cost of reduced technical efficiency, when the crop diversification strategy of smallholders includes market-oriented high-value crops. This calls for a dual policy approach that addresses farmers’ internal needs for self-consumption (increasing efficiency of food crop production) while encouraging market-oriented cash crop production (diversification assisted through the reduction of associated transaction costs and the establishment of accessible commercialization channels of export related crops and/or high-value crops). The work also calls out for a move-up or move-out strategy for small holders to create viable farming systems in developing world.

Keywords: economic viability; technical efficiency; smallholder farmers; Sierra Leone (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:8:p:4235-:d:533878

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