COMPARATIVE PROFITABILITY AND RELATIVE RISK IN IMPLEMENTED CLIMATE-SMART SOIL PRACTICES AMONG FARMERS IN SELECTED COUNTIES IN WESTERN KENYA

Abstract

The adoption of climate-smart soil (CSS) practices among farmers will rehabilitate and protect the soil. Proponents have not fully addressed factors such as; profitability and the relative risk that farmers face during the adoption and implementation of these CSS practices. These factors determine the adoption and sustainability of these practices. This study assessed the comparative profitability and relative risk of implementing CSS practices among farmers in Kakamega, Siaya, and Bungoma counties in Western Kenya. The selection of these CSS practices, agroforestry, intercropping, liming, organic manure use, inorganic fertilizer, and improved hybrid seeds, was based on the pillars of climate-smart agriculture (CSA).  These pillars are production, adaptation, and mitigation and their benefits. A deterministic cost-benefit analysis model that incorporates sensitivity and scenario analysis assessed these factors. The findings showed that agroforestry was the most profitable having a net present value of US$ 16,071ha^-1 (KES 1.7 million), followed by intercropping by US$ 10,487ha^-1 (KES 1.1 million), and the use of improved hybrid seeds was the least profitable with US$ 881ha^-1 (KES 92,505). All the practices were more sensitive to the product price and output than the lifespan, discount rate, and labour in terms of relative risk. The result implies that exposure of these practices to climatic and economic shocks will result in high-profit risk. Therefore, national and county governments should place micro-credit loans with minimum interest, subsidies, and skilled personnel policies to promote increased adoption of agroforestry and intercropping. Agricultural extension officers should also demystify farmers’ mentality that improved hybrid seeds can guarantee increased productivity.