Our research reveals a troubling trend in Haitian agriculture - farm size and productivity are inversely related. Larger farms are less productive than smaller farms, with a 1% increase in farm size linked to a 0.4% decrease in agricultural productivity. This is a common challenge faced by developing countries, often stemming from issues like limited access to credit, irrigation, labor, and inputs.
However, there is a glimmer of hope - our data shows that remittances from abroad can have a significant positive impact, with a 10% increase in international remittances associated with a 2% boost in agricultural productivity. This suggests that access to additional resources can be a game-changer for Haitian farmers.
Our analysis also highlights the critical role of market access in determining the ability of agricultural households to sell their products, purchase inputs, and expand their operations. Wealthier households and those with access to other income sources, like pensions, are more likely to overcome the transaction costs involved in gaining market access.
Furthermore, we find that diversifying within agriculture, such as growing multiple crops or engaging in livestock activities, can serve as a risk mitigation strategy, helping households weather shocks to individual crops. Additionally, the linkages between farm and non-farm income sources suggest that supporting the development of diverse income streams can unlock greater investment in agricultural inputs and productivity.
One particularly concerning finding is that female-headed households face additional constraints in hiring labor and accessing additional land for cultivation. This highlights the need for targeted interventions to address the specific challenges faced by women in Haitian agriculture.
By understanding these dynamics and addressing the underlying barriers, we can unlock the immense potential of Haitian agriculture, empowering small-scale farmers and driving sustainable economic growth.
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The HDN Foundation is a 501(c)(3) public charity. EIN 93-2350714