Adoption of climate-resilient groundnut varieties increases agricultural production, consumption, and smallholder commercialization in West Africa

Smallholder commercialization is a key policy objective for poverty reduction in developing countries. However, success depends heavily on agricultural productivity, which remains low in Sub-Saharan Africa. The Green Revolution's success in increasing agricultural production through high-yielding and disease-resistant varieties provides a model. Climate-resilient crop varieties, crucial components of climate-smart agriculture (CSA), offer the potential to increase productivity, build resilience to climate shocks, and reduce greenhouse gas emissions. This study examines the impact of adopting climate-resilient groundnut varieties on production, consumption, and commercialization among smallholder farmers in Ghana, Mali, and Nigeria. Groundnut is a vital food and cash crop in Sub-Saharan Africa, contributing to household income and improving soil fertility. This research uses rich farm-level data to analyze the link between adoption and key agricultural outcomes, aiming to understand the role of climate-resilient varieties in agricultural transformation and poverty alleviation.

Existing literature emphasizes the importance of agricultural commercialization for poverty reduction and economic development. Studies highlight the role of agricultural productivity growth in driving economic diversification. The Green Revolution's success in boosting agricultural production through improved crop varieties is well documented. Research also explores the role of climate-resilient crop varieties in building farmers' climate resilience and promoting climate-smart agriculture. Several studies show the positive impact of improved seed varieties on productivity and income. However, the specific impact of climate-resilient groundnut varieties on production, consumption, and commercialization in the context of West African smallholder farming systems requires further investigation. This study builds upon this literature by focusing on the specific context of groundnut production in three West African countries and analyzing the combined effects on production, consumption, and commercialization.

This study uses a three-wave panel dataset from Ghana, Mali, and Nigeria (2017-2019) collected through a multistage sampling procedure. The dataset includes 8604 observations from 2868 households. Commercialization is measured using market participation, quantity sold, and sales value. Production is measured by total quantity produced, production value, and yield. Consumption is measured by the quantity of groundnut consumed by households. Adoption of climate-resilient groundnut varieties is measured as a binary variable (adoption/non-adoption) and as the area under cultivation. The study employs household fixed effects (FE) and correlated random effects (CRE) estimators to control for unobserved heterogeneity. To address endogeneity concerns (reverse causality and measurement error), a two-stage least squares (2SLS) approach is used, with willingness to adopt climate-resilient groundnut varieties as an instrumental variable. Robustness checks include the use of Hausman-Taylor IV estimator, heteroskedasticity-based estimator, and two-stage residual inclusion approach. Quantile regressions are used to examine the heterogeneous impacts of adoption across different levels of commercialization.

The study finds a positive and statistically significant association between the adoption of climate-resilient groundnut varieties and increased production, consumption, and commercialization. Adopting these varieties leads to a yield increase of approximately 345 kg/ha and a production value increase of USD 476. Home consumption increases by about 213 kg. Adoption also significantly increases market participation (5-6%), quantity sold (54-59%), and sales value (53-57%). Sustained adoption over three years yields even greater impacts, multiple times larger than those from one or two years of adoption. Cross-country analysis reveals heterogeneity, with the strongest yield effects observed in Ghana and Nigeria, and the strongest commercialization effects in Nigeria. Increased production is a key driver of commercialization, although household consumption also plays a role. Quantile regressions indicate that adoption benefits all households, but the largest gains are observed among smaller producers, suggesting inclusiveness.

The findings demonstrate that adopting climate-resilient groundnut varieties can significantly improve agricultural outcomes for smallholder farmers in West Africa. The positive impacts on production, consumption, and commercialization suggest a pathway towards agricultural transformation and poverty reduction. The inclusiveness of the adoption benefits, with larger gains for smaller producers, is particularly noteworthy. The significant role of increased production in driving commercialization highlights the importance of improving yields through technology adoption. The findings underscore the potential of climate-resilient crop varieties as a key component of climate-smart agriculture, contributing to both increased productivity and enhanced resilience to climate change. The observed cross-country heterogeneity emphasizes the need for context-specific strategies for technology adoption and dissemination.

This study provides strong evidence that adopting climate-resilient groundnut varieties enhances agricultural production, consumption, and commercialization among smallholder farmers in West Africa. Sustained adoption is crucial for maximizing benefits. Future research should explore the specific factors driving cross-country heterogeneity, investigate the long-term impacts of sustained adoption, and examine the role of complementary interventions in enhancing technology adoption and its impact on smallholder livelihoods. Strengthening seed systems and market access are vital for realizing the full potential of these varieties.

While the study utilizes a large and rich dataset, some limitations exist. Attrition in the panel data, although relatively low, could introduce some bias. The instrumental variable strategy, while addressing endogeneity concerns, relies on the validity of the chosen instrument (willingness to adopt). The focus on a specific set of promoted varieties might limit the generalizability of the findings to other varieties or contexts. Finally, the study focuses primarily on household-level impacts and does not delve deeply into the gendered aspects of agricultural production and commercialization.