Analysis of socio-economic factors affecting profitability of sorghum farming in Siaya County, Kenya

Abstract

The uptake of sorghum farming as a viable enterprise among small holder farmers in Siaya County has been low despite the changing climatic conditions that make sorghum the most suitable cereal crop for the region. Many questions have been raised regarding the low proportion of farmers who plant sorghum despite the desirable attributes of sorghum such as performing well under low input conditions, being drought resistant, less vulnerable to pests and diseases and its high nutritive value. The main purpose of this study was to analyze the gross margin of sorghum and the socioeconomic, institutional, and policy factors that affect profitability of the crop. The study was undertaken in Siaya County where cross-sectional survey research design was utilized in data collection. A combination of multi stage and purposive sampling was used. Alego-Usonga Sub County was purposively selected to represent the entire population because the sub county has high poverty levels, as well as high population of sorghum farmers. The target population included all the sorghum farmers in Siaya County. A total of 310 respondents randomly selected from Alego-Usonga Sub County were used to represent the research population. Gross margin and multiple regression were employed to examine the profitability of sorghum farming, and the effect of socioeconomic, institutional factors, and policy factors on the gross margins from sorghum respectively. The study was based on the theory of the firm Stata and SPSS aided in analyzing data. The results found gross margin from sorghum to be positive with a value of kshs. 4,286 per acre on average. The average revenue per acre was found to be kshs. 14, 175 while average variable cost per acre was ksh. 9, 889. This shows that sorghum farming is profitable in the short run. Socioeconomic, institutional and policy factors found to significantly determine gross margins included age of household head (β ₌ -1.3122, p ₌ 0.016**), household size (β ₌ 3.791, p ₌ 0.000***), education level of household head (β ₌ - 3.3826, p ₌ 0.000***), household income (β ₌ 1.7639, p ₌ 0.018**), access to extension (β ₌ 2.2287, p ₌ 0.002**), number of crops intercropped with sorghum (β ₌ - 0.09369, p ₌ 0.097*) and Nature of farming (β ₌ 1.5265, p ₌ 0.007**). In conclusion, sorghum farming in Siaya County is profitable in the short run, but in the long run it will depend on variability of all factors. Consequently, the study recommended that extension services should be improved; farmers should be encouraged to embrace sustainable farming practices such as mixed farming, farmers be encouraged to practice objective intercropping, and also to diversify their income sources. Finally,