Market trends in many developing countries indicate that selling agricultural produce to itinerant traders at the farmgate has been rising, despite criticism that the practice preys on and exploits farmers. Using a cross-sectional data set of 525 households, we investigate the factors influencing participation in farmgate trading and its effects on agricultural productivity in western Kenya. We specifically consider the role of liquidity–related variables within a context of the perennial export crops, a contribution that has received less attention in literature.

The inverse farm size and productivity relationship (IR) is a recurring theme in the literature. However, most previous studies were undertaken within a setting of mixed cropping systems. In this article, we investigate the effect of farm size on productivity within the context of a perennial monocropping system, acute competition for farmland, frequent subdivision of farms and declining yields. We apply household survey data of smallholder tea farms in western Kenya and consider both technical efficiency (TE) and the yield per hectare as indicators of productivity.

Sustainably intensifying rural agricultural systems is now a development goal that has gained momentum in the recent decades due to a rapidly growing population and feeds directly into the Sustainable Development Goals of ending poverty and hunger. By 2050, the world will be inhabited by 10 billion people, 68% of whom will be city dwellers which will pose serious food and livelihoods security threats to millions of people, especially in Sub-Saharan Africa.

Abstract