Effect of Adoption of Cash Crop Production On Land Allocation In Rwanda

Land and labour are key factors of production in labour-intensive economies, especially in developing countries. Different production inputs, including land, constrain profit-maximizing farmers. The study adds to the scientific understanding of the land requirements for both nonmandatory cash crops and traditional crops. The scarcity of land in Rwanda makes substantive research crucial in understanding the differences in land requirement between different crops. The study aimed to contribute to improved well-being of cash crop growers through the analysis of cash crop production on land allocation among smallholder farmers in Rwanda. The objective of the study was to determine the impact of cash crop production on land allocation. The study employed an explanatory research design, with non-mandatory cash crops and traditional crop growers constituting the two strata under investigation. We used a multistage sampling technique to obtain a sample of 400 farmers. We collected primary cross-sectional data and used a fractional logit response model to assess the allocation of land to different crop productions. Non-mandatory cash crop producers allocate 4.1% more land to cash crops compared with traditional cash crop producers, although the difference is not significant. However, cash cropsreceive a significant allocation of 10.5% more land than traditional crop producers. Education and female farmers are likely to promote non-mandatory cash crop production. We should emphasize trainings, land accessibility among female farmers, and market proximity while introducing new cash crops.