Moderating Effect of Cost of Information Technology Adoption and Utilization on the Relationship Between Cost of Sugarcane and Food Production Among Farming Agribusinesses in Nyanza Region, Kenya

Abstract

Climate change has hampered the predictability of the weather patterns across the globe. This has occasioned lack of preparedness and better planning for coping and adaptability among farming agribusinesses. Inadequate farm output, low income and food insecurity are their outcome since drought and flood episodes are the dominant consequences of adverse climate change. Developing nations that have adopted and utilized information correctly such as India and Brazil have realized high yields and income through reduced costs of inputs, hence minimizing food insecurity. Although weather information is often disseminated to Kenyans and given the existing remarkable agricultural information dissemination channel through electronic media, Nyanza region still suffers from low agricultural output. It is unclear whether the problem is one of cost of adoptions and utilization of the media or it is the packaging of agricultural information. Literature is also scanty on how the cost of technology adoption and utilization moderates the relationship between sugarcane production costs and food production costs. Guided by the Cost Minimization Theory, this study used cross-sectional primary data collected from 317 sugarcane and food (maize) crop farmers selected through a multistage random sampling. Multinomial logit regression was used analyse any existing moderating effect within the study area. Findings show that only cost of technology adoption negatively and significantly influenced the cost of sugarcane production. Results further indicate that as a moderator, the cost of weather information adoption was not significant in influencing the factors of production in either maize or mixed production but was being absorbed negatively and significantly into the cost of land in sugarcane production. Since the adoption of agricultural information is usually hampered by a lack of logistics, downscaled information, and confidence, capacity-building of farmers must be mainstreamed. Hence, the need for extension services advocacy on the use of technology in agriculture.