Forecasting agriculture yield in Nepal using machine learning techniques

Sandeep Dhakal () and Ajaya Dhungana ()
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Sandeep Dhakal: Kathmandu University School of Management (KUSOM)
Ajaya Dhungana: Securities Board of Nepal

NRB Economic Review, 2025, vol. 36, issue 1, 1-33

Abstract: Accurate prediction of agricultural yield is extremely important to ensure food security and cope with the challenges created by climate change and natural disasters. Forecasting agricultural yield is a challenging task due to the complex nature of variables (fertiliser, rainfall, temperature and others) that affect agricultural production. This study employs six supervised machine learning algorithms: Support Vector Machine (SVM), Decision Tree (DT), Random Forest (RF), Multi-Layer Perceptron (MLP), Recurrent Neural Network (RNN), and Convolutional Neural Network (CNN) to build a predictive model using 49 years of historical data (1973-2021) on paddy, wheat, and maize. Model performance was evaluated using Mean Squared Error (MSE), Mean Absolute Error (MAE), Mean Absolute Percentage Error (MAPE), and Root Mean Squared Error (rMSE). Results show that DT and RF models are the most precise with MSE 1% to 5%, MAE 8% to 21%, followed by SVM and CNN. Key predictors of crop yield include area cultivated, capital expenditure, banking expansion, rainfall, temperature, and fertilizers, while irrigation and road network were less significant. The study recommends that farmers prioritize commercial farming, agricultural equipment, and timely availability of fertilizer for application. The Government of Nepal (GoN) should redirect subsidies towards agricultural mechanization, ensure timely supply of fertilizer, and expand banking services in agricultural areas.

JEL-codes: C61 C63 Q19 (search for similar items in EconPapers)
Date: 2025
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