Economic Analysis of the Competitiveness and Cropping Pattern of Small-Scale Farms in the Rain-Fed Sector of Gadarif State - Sudan

Abstract

This study aimed to study the socioeconomic characteristics of small-scale farm’ house hold head in the rain-fed sector of Gadarif State, investigate the social profitability and competitiveness of the main crops grown in the state and determine the optimal cropping sequence. Both primary and secondary data were used in the study. Multistage random sampling technique was used to collect primary data on small-scale farms from three villages of the state by means of questionnaire, during 2012/2013 season. Secondary data were collected from Central Bureau of Statistics and Federal Ministry of Agriculture. Descriptive statistics, F-test, Policy Analysis Matrix (PAM), and linear programming technique were used to achieve the stated objectives. The results revealed that, yields and net returns of small-scale farms was so poor, even though the majority of farmers were in the active age group, married with reasonable family members, has long agricultural experience and somehow large farm size. Results of the policy analysis matrix showed that, government intervention for improving the profitability and competitiveness of the main crops grown in Gadarif state (sesame, groundnuts, sorghum and millet) is still short of optimum. Despite the fact that all crops were financially and socially profitable and has high comparative advantages under the current policy measures. Farmers producing sorghum, sesame and millet were taxed in domestic-inputs. The situation was worse for the socially profitable groundnut-crop, which taxed in domestic inputs, out-put transfer and total transfer. These policy discouraged female-farmers, the main producers of groundnuts in the state, from continuing cultivating this crop. However, it is worth mentioning here that, sorghum, sesame and millet were supported by the government in terms of tradable inputs and revenue transfer, even though, small scale farmers confirms they receive nothing. Sensitivity analyses proved that sesame was a competitive crop and have a substantial profitability and comparative advantages. Other crops, sorghum millet and groundnuts revealed slight profitability and comparatives advantages under the current policy situations, agricultural practices and environmental conditions. On the other hand, results of the linear programming technique revealed that the current cultural practices and crop sequence, in which sorghum do not come after sesame, was not the optimal one. Food-crops (sorghum and millet) did not enter the optimal cropping pattern under the current sequences and policy measures, with sesame dominated the total land. The crop sequence of groundnuts, sesame, sorghum and millet proved to be the optimal cropping pattern that improves farmer’s returns. Under such sequence, the four crops entered the optimum plan and farmer’s returns exceed the current situation by 181.94%, but if full technical packages were adopted, farmers' returns doubled three times. The study stresses the importance of microfinance and provision of subsidies to small-scale farms in rain-fed sector particularly groundnuts to improve their competitiveness and profitability. Subsidies might be in the forms of long lease of the land with cheaper prices, subsidized inputs and output. Both microfinance and subsidy program should be linked with extension program to ensure that small-scale farms adopt the recommended crop sequence and recommended technical packages.