Short-Term Economic Analysis of the Profitability of Different Crop Residue Management Practices in Cotton Production in Northern Benin

This study examines the effects of six crop residue management practices on cotton profitability in four villages of northern Benin, using farm-level data from 225 households in the municipalities of Banikoara and Kandi. Due to missing data on key variables, the estimation sample ranges from 225 to 207 observations depending on data availability for specific analyses. We estimate three profitability indicators: net revenue per hectare [RNHA], benefit–cost ratio [BCR], and average labour productivity [ALP] using OLS regression with village-clustered robust standard errors. To understand the sources of profitability differences, we apply a three-fold Blinder–Oaxaca decomposition comparing households that retain crop residues with those that do not. The results show that the economic effects of residue management are practice-specific. Incorporation, penning and manure application significantly improved the benefit–cost ratio. Penning was the only practice with significant effects on both net revenue and the benefit–cost ratio. The Blinder–Oaxaca decomposition further shows that, across all three profitability indicators, the coefficient effect dominates. Households retaining residues had 47,776.09 FCFA/ha higher net revenue, 1287.99 FCFA/person-day higher labour productivity, and a 0.187 higher benefit–cost ratio than non-adopters. These differences were significant at the 10%, 5% and 5% levels, respectively. The decomposition indicates that 197.8% of the RNHA gap, 175.5% of the ALP gap, and 157.6% of the BCR gap are explained by differences in returns to observed characteristics rather than by differences in endowments. The endowment effect was small and not statistically significant for any outcome. This suggests that residue management practices improve profitability primarily through better input use efficiency and management, rather than through differential access to resources. The findings indicate that policy should target the promotion of residue incorporation and penning through practical demonstrations, and develop tailored credit for inputs, draft animals and light tillage equipment to reduce labour constraints, particularly for older farmers. Location-specific interventions are needed in low-performing areas such as Kandi, and labour-saving alternatives to burning should be prioritised over bans.