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SIERRA LEONE maq 4ª.indd - agrilife - Europa

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up an agrarian system. The household farming<br />

system31 is an element of the agrarian system and<br />

it illustrates how a production unit combines the<br />

different production factors (such as land, labour<br />

and technology). The ASD methodology provides<br />

an in depth analysis of the characterisation and<br />

economic performances of farming systems<br />

based on the regional socio-economic and agroecological<br />

conditions. This methodology was<br />

developed to study relatively small regions, where<br />

information and data are directly collectable as<br />

part of field investigations; thus fitting with the<br />

specific features of the present Sierra Leone study.<br />

Applying this methodology a descriptive and<br />

comparative analysis of the survey results is made<br />

between and within the two studied regions.<br />

Based on ASD methodology, the<br />

smallholder characteristics were assessed not<br />

only by describing their demography, access to<br />

infrastructure and communication or community<br />

leadership and social participation at the village<br />

or chiefdom level, but also their differentiating<br />

farming resources and practices. To understand<br />

these socio-economic features of smallholders<br />

in different regions, the results of the survey<br />

are illustrated at region and district levels.<br />

However, to analyse viability and poverty at<br />

farm level, smallholders were grouped into<br />

different farm types depending on crop mix<br />

and crop production orientation (market or selfconsumption).<br />

This categorisation based on the<br />

dominant cropping system is expected to shed<br />

light on the farm organisation and how it affects<br />

farm household capacity to sustain their farming<br />

systems and secure a minimum consumption<br />

level from farm output.<br />

Next, a description of the approach<br />

implemented to evaluate the economic<br />

performance and viability of smallholders is<br />

31 A farming system is defined as a population of individual<br />

farms which have broadly similar resource endowments,<br />

enterprise patterns, family circumstances, household<br />

livelihoods and constraints, and for which similar<br />

development strategies and interventions would be<br />

appropriate (FAO 2001 Farming System and Poverty)<br />

introduced in sub-section 5.2.1 and in subsection<br />

5.2.2 input factor productivity at farm<br />

level is discussed.<br />

5.2.1 Calculation of economic performance<br />

As stated, the evaluation of economic<br />

performance of smallholders includes viability,<br />

poverty and a productivity assessment. For this<br />

purpose, the calculation of the level of agricultural<br />

income of smallholders is a mandatory step in<br />

order to analyze economic viability with respect<br />

to a reproduction threshold and the capacity to<br />

fulfil basic consumption needs by introducing a<br />

poverty line. Below, the measurement principles<br />

and procedures of farm household income,<br />

reproduction threshold and poverty line are<br />

explained.<br />

Farm household income calculation<br />

A comprehensive measure of farm-<br />

household income is a key indicator which<br />

considers all household activities. However,<br />

given the focus of the survey, it is not possible<br />

to account for all non-farm income and thus<br />

agricultural production activities rather dominate<br />

farm household income calculation in this case.<br />

Farm Net Income (FNI) is determined on<br />

a micro scale using technical and economic<br />

parameters, i.e. yield, off-farm prices of the<br />

produce, production costs and depreciation,<br />

it does not include policy parameters, such<br />

as (subsidies, credits, taxation32 and market<br />

policies). The FNI is based on the survey results<br />

obtained by subtracting all Input Costs (IC)<br />

(Variable Costs and Fixed Costs) from Output<br />

Value (OV) for each individual household<br />

(Equation 1). The Farm Gross Margin (FGM) is<br />

calculated as the difference between the Output<br />

Value and the Variable Costs. Based on the survey<br />

results, secondary data and expert knowledge the<br />

analyses provide information also concerning<br />

32 Smallholders in the survey are not subject to agricultural<br />

taxation. See Section 3.4.2 (Jalloh, 2006)<br />

Rural poverty reduction and food security: The case of smallholders in Sierra Leone<br />

77

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