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IV. Agricultural development indicators
The LTC/ICRAF study did not have as an objective the analysis of links between tenure and
agricultural productivity or development. Therefore, the indicators used in this analysis are probably
not sufficiently rigorous in measurement or breadth to warrant any definitive conclusions. Further
work will certainly need to be undertaken. Nonetheless, the results are useful if for no other reason
than to guide future research.
The agricultural development data available exist in the form of binary responses indicating
whether a particular investment or activity was undertaken (for example, see tables 5.7, 5.8, and 5.9).
For all the measures except for use of formal credit, the time frame is the entire period the farmer has
occupied the land. For credit, the incidence refers to the past five years only. The following sections
compare indicators among regions, first with respect to credit and oxen use, second with respect to
land improvements, and third with respect to tree planting.
A. Credit and use of oxen
Table 5.7 displays some aspects of credit and oxen use among sample households. The
majority of households in both provinces obtained formal credit at least once during the previous five
years despite the low incidence of title among households. Instead, other forms of collateral were often
used to help secure credit, chiefly livestock and crops. The use of crops as collateral was made
possible by the state's control over agricultural inputs and outputs. Government banks would issue
credit to farmers who would obtain fertilizer from a government supplier. Credit risks were reduced
since all produce was marketed through the government as well. With the advent of market
liberalization, this degree of control will be lost and lenders will likely not be as keen on using crops
as collateral.
Table 5.7: Aspects of credit and oxen use among households
|
Southern province |
Eastern province | |
|
Percent using formal credits |
55.0 |
60.4 |
|
Percent of borrowers using land or |
17.0 |
0.0 |
|
Percent with oxen |
58.0 |
44.8 |
|
Median number of head in oxen |
3 |
2 |
a. At least once in previous 5 years.
b. Percent of all loans secured with land title.
Around 58 percent of households in Southern province own at least one ox, compared with
45 percent in Eastern province. The use of oxen is important in expanding production area of a farm.
Studies by Celis, Milimo, and Wanmali (1991) found that the area under cultivation was about twice
as high in oxen-owning households as it was in households without oxen. With respect to this study,