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Abstract
The introduction of new forages and milk marketing improvements was projected to
permit even the smallest modeled farms in a western Kenya region to adopt dual-purpose
goats and thereby improve family income and nutrition. Expanded credit permitted modeled
medium and large farms, especially, to vigorously exploit these innovations; credit also
expanded income more than did goat management improvements. Because credit, extension
assistance, marketing improvements, and new forages will leave projected incomes of small
farmers below those of medium and large farmers in the study region, development of
off-farm jobs may still be necessary to supplement the incomes of this fast growing group.
The marginal value of capital for medium and large farmers with new livestock technology
was high. This suggests that government-subsidized credit might be unnecessary. With
proper infrastructural and legal support, private capital markets might develop as new
livestock technology and marketing improvements expand the demand for borrowing.