The supply responsiveness of wheat farmers in Kenya

Abstract

This study shows how wheat farmers respond to price incentives in Trans-Nzoia, Uasin-Gishu, Nakuru, Narok and Nyandarua districts of Kenya. The prices are the annual and one-year lagged prices of wheat and other competing enterprises in each district The Nerlovian partial adjustment model is used to analyse the data by district. The calculated price elasticities indicate that farmers in these districts, except Narok, have high positive response to annually announced wheat prices. Some policy implications are drawn from the analysis.