Spillover effects of medium- and large-scale farms on smallholder farmers in Tanzania: Evidence from the National Sample Census of Agriculture 2019/20

Abstract

Tanzania has implemented a number of policies and initiatives to promote the growth of the agricultural sector. Among these are efforts geared toward fostering large-scale farm investments, which is partly premised on the notion that smallholder farmers will also benefit through improved access to factor markets and output markets, better prices, and knowledge transfers. Nevertheless, evidence on such spillover effects is far from clear. To fill this gap, we draw on the 2019/20 National Sample Census of Agriculture to estimate the spillover effects from large and medium-scale farms to smallholder farmers in Tanzania. Using logistic and linear regression models, we find evidence consistent with positive effects from medium-scale farms to smallholder farmers around adoption of improved technologies—particularly the use of improved seeds, organic fertilizer, irrigation, and mechanization—and crop yield. These relationships are more evident for maize farms. We also find evidence consistent with spillover effects from large-scale farms, specifically around the adoption of improved crop technologies and livestock vaccinations. These results add an argument in favor of policies that foster the coexistence of large-, medium-, and small-scale farms.