Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 538

Full Length Research Paper

An evaluation of the effects of revolving funds on dairy inputs’ use in Chepalungu Sub-County, Kenya

Norah Chepkirui
  • Norah Chepkirui
  • Department of Agricultural Economics and Agribusiness Management, Faculty of Agriculture, Egerton University, Kenya.
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George Owuor
  • George Owuor
  • Department of Agricultural Economics and Agribusiness Management, Faculty of Agriculture, Egerton University, Kenya.
  • Google Scholar
Lawrence Kibet
  • Lawrence Kibet
  • Department of Economics, Faculty of Arts and Social Sciences, Egerton University, Kenya.
  • Google Scholar


  •  Received: 15 October 2021
  •  Accepted: 16 November 2021
  •  Published: 30 November 2021

Abstract

The major challenge facing agricultural investments in Kenya is not the adoption of emerging technologies but the empirical question is whether the adopters really benefit from adoption. While extant literature has been focusing on whether farmers adopt to presented technologies, the novelty of this study is to present whether the adopters really benefit from adoption. The objective of the study was to evaluate the effects of revolving funds on the investment of agricultural inputs. A double hurdle model was applied to determine participation decision and the extent of how the adopters utilized revolving funds. Farmer’s decision on adoption and the ratio of revolving funds dedicated to dairy inputs were made at two separate stages. Results showed that the type of dairy enterprise and farming experience significantly affected the adoption decisions. Group membership and household income levels in the second tier were found to be significant hurdles towards the usage of revolving funds. The policy implication is that for farmers to increase the intensity of the use of revolving funds in their dairy enterprises, two major hurdles must be surpassed; investment in cooperative movements as well as improving the farm and non-farm incomes of the dairy farmers.

Key words: Revolving funds, double hurdle, agricultural inputs.