Spillovers from foreign land-based investments in agriculture: evidence from a nucleus-outgrower scheme in Zambia

Nucleus-outgrower schemes (NOSs) are considered particularly effective private-sector mechanisms for supporting smallholder farmers and mitigating problematic aspects of large-scale agricultural investments. Using two rounds of panel household surveys from approximately 780 households in Zambia, this study examines the impact of a NOS associated with one of the largest foreign land-based investments in agriculture in Zambia. We focus on links between NOS interventions and smallholder farmers’ adoption of agricultural technologies, sustainable land management (SLM) practices, and crop productivity. Findings indicate that NOS participation increased adoption of full-suite conservation agriculture (CA) practices. However, impacts on other technologies, specifically improved seed varieties, are less clear and depend on support type and scheme design. Results also show that while overall productivity impacts are modest, the programme contributed to maize productivity improvements during its initial phase, but less so latter when focus shifted towards oilseed crops. In summary, NOSs, despite associated risks, have potential to make substantial contributions to sustainable agricultural practices and improve smallholder productivity.