Impact of adoption of conservation agriculture on farm productivity and financial performance in Tanzania

Min Bai & Yohane Magembe

Abstract
Conservation agriculture (CA) has gained momentum in recent years in response to growing threats to human livelihoods and the environment from anthropogenic activities such as unsustainable farming practices, excessive use of chemical fertilisers, deforestation, urbanisation and greenhouse gas (GHG) emissions. These factors collectively drive climate change, the decline in soil fertility and reduced crop yields, undermining food security and farmer incomes. The cycle perpetuates persistent food insecurity and poverty, particularly in agrarian economies. Conventional agricultural systems are increasingly unable to meet these challenges, prompting a shift toward sustainable CA. However, limited evidence exists for how the intensification of CA affects both crop and financial performance. Using nationally representative cross-sectional data, the study investigated the impact of CA adoption through a multivalued treatment framework. Doubly robust augmented inverse probability weighting (AIPW) and inverse-probability-weighted regression adjustment (IPWRA) estimators were adopted to assess gross yields, productivity, costs, profits and returns on investment. The findings, which could withstand a series of robustness checks, show that greater CA intensification yields higher rewards for farmers. However, these benefits come with additional costs that influence profits and returns on investment. The results suggest that stakeholders should look beyond yield improvements alone and consider the associated costs to fully capture CA’s profitability. Policies promoting CA adoption should therefore emphasise optimal combinations of CA technologies that maximise returns, while minimising costs.