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The impact of receiving SMS price and weather information on small scale farmers in Colombia

Author

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  • Camacho, Adriana
  • Conover, Emily
Abstract
Small-scale farmers in developing countries often make production and sale decisions based on imprecise, informal, and out-of-date sources of information, such as family, neighbors, or tradition. Lack of timely and accurate information on climate and prices can lead to inefficiencies in the production, harvesting, and commercialization of agricultural products, which in turn can affect farmers’ revenues and well-being. We did a Randomized Controlled Trial (RCT) experiment with 500 small-scale farmers in a rural area of Colombia where there is nearly full mobile phone usage and coverage. Treated farmers received around 8 text messages per week with prices in the main markets for crops grown in the region, and customized weather forecasts. Compared to a control group, we find that treated farmers were more likely to report that text messages provide useful information for planting and selling, and more likely to always read their messages, indicating an increase in appreciation and use of this type of technology. We also found heterogeneous effects by farmer size. Smaller farmers try to make use of the intervention by planting more crops for which they have price information. Larger farmers seek new markets and increase conversations with other producers. Despite these positive effects, we do not find a significant difference in farmers reporting a price, price differential with the market price, or sale prices received. Our results indicate that farmers are amenable to learning and using new technologies, but that the introduction of these technologies do not always translate into short-run welfare improvements for them. Given the increased interest in incorporating information and communication technologies into agriculture, our findings indicate that prior to a large-scale implementation it is necessary to better understand what prevents farmers from more directly profiting from this new information.

Suggested Citation

  • Camacho, Adriana & Conover, Emily, 2019. "The impact of receiving SMS price and weather information on small scale farmers in Colombia," World Development, Elsevier, vol. 123(C), pages 1-1.
    • Handle: RePEc:eee:wdevel:v:123:y:2019:i:c:12
    DOI: 10.1016/j.worlddev.2019.06.020
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    References listed on IDEAS

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    3. Catherine Ragasa & Diston Mzungu & Kenan Kalagho & Cynthia Kazembe, 2022. "Role of interactive radio programming in advancing women’s and youth’s empowerment and dietary diversity: Mixed method evidence from Malawi," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(5), pages 1259-1277, October.
    4. Abate, Gashaw T. & Bernard, Tanguy & Makhija, Simrin & Spielman, David J., 2023. "Accelerating technical change through ICT: Evidence from a video-mediated extension experiment in Ethiopia," World Development, Elsevier, vol. 161(C).
    5. Fred Mawunyo Dzanku & Robert Darko Osei, 2023. "Does combining traditional and information and communications technology–based extension methods improve agricultural outcomes? Evidence from field experiments in Mali," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 450-475, February.
    6. Qianhui Ma & Shaofeng Zheng & Peng Deng, 2022. "Impact of Internet Use on Farmers’ Organic Fertilizer Application Behavior under the Climate Change Context: The Role of Social Network," Land, MDPI, vol. 11(9), pages 1-19, September.
    7. Wei Chen & Quanzhong Wang & Hong Zhou, 2022. "Digital Rural Construction and Farmers’ Income Growth: Theoretical Mechanism and Micro Experience Based on Data from China," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    8. Yegbemey, Rosaine N. & Bensch, Gunther & Vance, Colin, 2023. "Weather information and agricultural outcomes: Evidence from a pilot field experiment in Benin," World Development, Elsevier, vol. 167(C).
    9. Omulo, Godfrey & Kumeh, Eric Mensah, 2020. "Farmer-to-farmer digital network as a strategy to strengthen agricultural performance in Kenya: A research note on ‘Wefarm’ platform," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    10. Hongyun Zheng & Wanglin Ma, 2023. "Smartphone-based information acquisition and wheat farm performance: insights from a doubly robust IPWRA estimator," Electronic Commerce Research, Springer, vol. 23(2), pages 633-658, June.

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    More about this item

    Keywords

    Prices and weather; Agriculture; SMS; Colombia;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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