The gain is as high as 33 percent for farms with a high share of subsistence annual crops and high erosion. The yield gains from shifting to cash cropping are highest for those with low levels of soil erosion and high use of fertilizer and organic matter. Growth of agricultural output must keep pace with rapid population growth, and is necessary to build trade ties in the region and abroad. This will require greater use of improved inputs. Without political stability it will not be possible to expect productivity investments.
Agriculture needs to be profitable from the output price side and the input cost side.
The drop in coffee prices reduced investment, and the high cost of fertilizer made coffee growing unaffordable for many. The general conditions of stability and profitability are, however, necessary but not sufficient more specific policies and programs are also needed to enable farmers to make the investments. Farmers need confidence in the longer term through secure land tenure. This means reducing the risk of appropriation, and giving households the right to transact land. This will require a reform of the land laws.