The perceived impact of agricultural advice in Ethiopia

ABSTRACTPurpose: We examine the impact of advice given by extension agents to Ethiopian farmers, as perceived by the farmers themselves. Design/methodology/approach: Using survey data from 2014, we analyze the perceived impact of advice on farmers’ incomes and crop yields. We use a bootstrapped instrumental variable (IV) estimator and the conditional mixed process estimator. Theoretical implications: The impact of advice will depend upon its relevance and whether and how efficiently it is implemented by the farmer. This in part depends upon the farmer’s ability and on the impact of fully implemented advice on output, which will vary from farm to farm. Findings: There is a positive perceived impact of most advice on both crop yields and income. However, some advice works better in drought-affected areas and other in non-drought-affected areas. Fertilizers have more impact on crop yields than income, possibly reflecting cost factors. There is evidence that the farmers’ ability to implement the advice increa...