| dc.description.abstract | Limited access to low-cost quality seed potato is a major production and productivity-reducing constraint for smallholder potato farmers in developing countries. Whereas smallholder farmers' investment in farmer-based seed potato production can ensure increased production and access to low-cost good-quality seed potato to potato farmers, the investment level of farmers in seed potato production remains low in Uganda, despite the higher returns associated with seed potato production. The low investment has mainly been explained by economic factors and less attention has been paid to socio-psychological factors in understanding farmer investment behaviour. This study examined how smallholder farmers' socio-psychological contexts influence their investment behaviour in seed potato production. Specifically, the study;(1) characterized smallholder seed potato producers and their production constraints; (2) established farmers' perception about investing in seed potato production; (3) assessed the factors influencing smallholder farmers' decisions and level of investment in seed potato production and (4) determined economic viability and stability of investing in seed potato production. The study was conducted in Kabale and Kanungu districts in South-Western Uganda and involved both seed and ware potato smallholder farmers. Mixed methods design combining surveys, focus group discussions, and key informant interviews were used. Principle component and cluster analysis were used to identify and cluster farm typologies, a double hurdle model was used to study the factors influencing farmer investment decisions and level of investment in seed potato production while Net present value, Returns on investment, Break even and Scenario analysis were employed to study viability and stability of farmer investment in seed potato production. This study found that smallholder farmers exist under four typologies: 1) the 'middle-aged female seed multipliers of moderate psychological capital and low investment level; 2) old-aged seed recyclers of high psychological capital and low investment level; 3) the 'young male seed recyclers of moderate psychological capital and high investment level and 4); young male seed multipliers of high psychological capital and the highest investment level'. Production in the 4 typologies was constrained by identical and typology-specific factors; the major ones being; land shortage, limited access to markets, credit facilities, and seed storage facilities. Farmers perceived investing in seed potato production as beneficial with a ready market, high prices, and high returns on investment. However, it was also perceived as a costly venture requiring more inputs, capital, and technical knowledge. The findings reveal that, only 44% of the potato farmers had invested in seed potato production. Further, the results revealed that, institutional factors (training, membership to a producer group &selling price) largely influenced farmers' decision to invest. In contrast, socio–economic factors (land size, expected revenue, sex of the farmer and farming experiences) significantly influenced farmers' level of investment in seed potato production. Similarly, psychological factors (social influence, optimism, resilience, loss aversion) affected both the decision and level of investment in seed potato production. Farmers' investment in seed potato production was found viable and stable even amidst market uncertainties but the viability and stability differed between districts and across typologies. These results lead to the conclusion that while the decision to invest is largely an individual farmer's psychological state that thrives by one's knowledge about the enterprise and observation of peer activities about seed potato production, the level of investment is largely due to ownership of the necessary production assets (land, finance , know-how) and the cognitive readiness to invest. Therefore, interventions that enhance farmers' cognitive readiness to invest in seedpotato production, such as the installation of producer-level storage facilities on farmland and a tailored extension of financial services and training are recommended . Given that socio-psychological factors remain critical in farmer investment decisions, the study also recommends the utility of socio-psychological theories in studies investigating investment behaviour, especially in the context of smallholder farmers to be intensified. This work underscore the role of typing farmers for better targeting of interventions and the use of both behavioural & economic models for comprehensive understanding of farmer investment behaviour. The study contributes to the body of knowledge by unravelling seed potato producer typologies existing among seed potato producers. It also introduces psychological factors in typology differentiation and in modelling investment behaviour of farmers. Further, the study contributes to the scanty knowledge on viability and stability of smallholder farmer investments in seed production. | en_US |
