Leasing land better deal for small-scale maize farmers
Small-scale farmers earn an average of Sh4, 200 from an acre of maize farm, highlighting how the high cost of producing Kenya’s staple food has made the venture unprofitable.
Tegemeo Institute, an Egerton University think-tank, says that small-scale farmers on average earn a return of Sh250 from a bag of maize.
The return places the growers earnings from an acre of maize farm at Sh4, 200 given their average produce on the acreage of 17 bags —which is pegged on favourable weather.
This means that small-scale maize farmers — who do the crop in land of less than 10 acres — are better off leasing their farms than planting, according to Tegemeo, which quotes the average price of leasing an acre at Sh10,000.
“The study found out that high cost of maize production in small-scale systems is having a negative impact on earnings,” said James Githuku, senior research associate at Tegemeo.
The depressed earnings from maize farming is the product of high input costs and the government strategy of pursuing a regime of lower prices of the staple food.
The government has been pushing for low cost of production by offering subsidies on fertiliser and seeds in the quest of making maize farming profitable while cushioning consumers from high cost of flour—the country’s staple food.
Tegemeo reckons that small scale farmers earn an average of Sh32, 300 from an acre of maize crop against costs including weeding, ploughing and fertiliser of Sh28,091.
Small investors leasing land to plant maize are unlikely to make a profit, according to the think-tank, which puts the average loss per acre at Sh5,746.
“The study found out that maize production for small-scale farmers who hire land is not viable as they get negative earnings,” Mr Githuku said.
Large-scale farmers tend to fair better on the strength of economies of scale that lower their input cost per bag. They also have the means to fetch better prices compared to the small scale growers who normally sell their produce at the farm gate to brokers.
Tegemeo says that small scale holders, on average, sell a bag of maize at Sh1,900 per bag compared to large-growers at Sh2,300.
The small scale maize farmers spend an average of Sh1,650 to produce a bag of maize while big farmers use Sh1,200, earning them a profit of Sh1,001 on a bag of maize.
More than 75 per cent maize produced in Kenya is from small-scale farmers, underlining the importance of their farming segment to Kenya’s food security.
According to Tegemeo, Kenya produces enough maize to feed the population based on estimated per capita consumption but when other uses of the grain like seed, feed manufacturing come in, the problem starts.
Eastern African Grain Council executive director Gerald Masila says the government should plant yellow maize on part of the Galana irrigation scheme to cater for animal feeds which eat into stocks meant for human use.
