Income Effect of Participation in Agricultural Production: The Case of Smallholder Maize Farmers in Tanzania

Abstract

Agriculture is an important sector of the Tanzanian economy, contributing about 26.9% to GDP. About 80% of the population depends on agriculture as a source of income. Extant literature shows mixed results regarding the relationship between agricultural participation and income. This study investigated effect of agricultural participation on income in Tanzania. The National Sample Census of Agriculture data 2019/2020 with a sample of 11,812 households was used. The study employed a quasi-experimental design. Propensity score matching was used to analyse the effect of household participation in maize production on income in Tanzania. The findings show that households participate in maize production have a negatively and significantly effect on their household income. Again, the use of fertilizer, off-farm employment, land size, and type of seed used positively and significantly influenced participation in maize production. On the other hand, sex of the household head, membership in cooperative, use of irrigation and herbicides had negative and significant effects on participation in maize production. Consequently, there is a need to provide necessary agricultural inputs such as fertilizer, improved seeds and a more enabling environment for land ownership to be used in maize production among smallholder farmers.