Good agricultural practices, farm performance, and input usage by smallholders: Empirical evidence from Nepal uri icon

abstract

  • This study examines the impact of good agricultural practices (GAP) on the farm income and fertilizer usage of smallholders in Nepal. Using qualitative variables, we first construct a GAP-index, a measure of the intensity of GAP adoption. The findings show that a GAP-index constructed through principal component analysis performs better than a GAP-index constructed with Markowitz's portfolio method. Results reveal a positive and significant relationship between the GAP-index and farm income and a negative and significant relationship between the GAP-index and fertilizer usage. Public and private partnerships that incentivize the adoption of GAP can help increase the income of and reduce fertilizer usage by smallholders.

publication date

  • 2019
  • 2019