Weather variability is an important source of production risk for rainfed agriculture in developing countries. This paper evaluates the impacts of the adoption of drought-tolerant maize varieties on average maize yield, yield stability, risk exposure and resource use in rainfed smallholder maize farming. The study uses cross-sectional farm household-level data, collected from a sample of 840 farm households in Uganda. The adoption of drought-tolerant maize varieties increased yield by 15% and reduced the probability of crop failure by 30%. We further show that the adoption of these varieties increased investments in maize production at the extensive margin through maize area increase and to a more limited extent at the intensive margin through mechanization. The findings show promise for further uptake and scaling of drought-tolerant maize varieties for increased productivity, reduced risk, and the transformation of the maize sector.
Keywords: Adoption; Crowding-In; Drought tolerance; Weather risk; Yield.