Farmer innovations in financing smallholder maize production in Northern Ghana

2019 ◽  
Vol 80 (3) ◽  
pp. 421-436 ◽  
Author(s):  
Mark Appiah-Twumasi ◽  
Samuel A. Donkoh ◽  
Isaac Gershon Kodwo Ansah
Keyword(s):  
Crop Production ◽  
Household Head ◽  
Probit Model ◽  
Northern Region ◽  
Northern Ghana ◽  
Market Participation ◽  
Traditional Methods ◽  
Maize Production ◽  
Content Type ◽  
Farm Investment

Purpose The purpose of this paper is to explore smallholder agricultural financing in Ghana’s Northern region by identifying farmers’ preferred traditional and innovative financing methods and estimating the determinants of use of innovative financing methods. Design/methodology/approach This paper presented a list of documented traditional financing methods to farmers during in-depth interviews and employed descriptive statistics to summarize choice and amounts sourced from traditional methods. Two questions from the survey revealed a felt need for extra financing sources for credit-rationed farmers. Farmers with positive responses to either or both questions were classified as “users of innovative financing”. The authors then used a probit model to examine factors that influence decisions to use innovative financing method. Findings Farmers’ own savings, reinvesting past season’s profits and financing maize production with income from other commercial crops were the most popular traditional methods. The authors found complementary relations between formal and informal lending systems in the rural financial market. Smallholders also took farm and non-farm “by-day” jobs to raise income for farm investment and/or joined Village Savings and Loans Associations (VSLAs) specifically to take advantage of possible credit opportunities. These two latter methods were operationalized in this study as innovative agricultural financing. The results show that access to credit, social capital and market participation increased the likelihood of using innovative financing methods. Alternatively, farmer group membership, diversity in crop production and being a household head diminished the likelihood of innovative financing use. Practical implications The activities of VSLAs can be regulated and expanded to spread its benefits to more farmers. Also, creating avenues for dry season labour market participation in the region could enable farmers raise capital for farm investment. Originality/value This study explores existing practices and farmer innovations to agricultural financing and, by so doing, deviates from the vast literature focussing mainly on microcredit provisioning as the main model of smallholder agricultural financing in Africa.

scholarly journals Climate Variability Since 1970 and Farmers’ Observations in Northern Ghana

2016 ◽  
Vol 5 (2) ◽  
pp. 41 ◽  
Author(s):  
Emmanuel Nyadzi
Keyword(s):  
Climate Change ◽  
Climate Variability ◽  
Water Conservation ◽  
Crop Production ◽  
Meteorological Data ◽  
Northern Region ◽  
Northern Ghana ◽  
Climate Variability And Change ◽  
Urban Centers ◽  
Access To Credit

<p>The study examines how farmers’ observations of climate variability and change correspond with 42 years (1970-2011) meteorological data of temperature and rainfall. It shows how farmers in the Northern Region of Ghana adjust to the changing climate and explore the various obstacles that hinder the implementation of their adaptation strategies. With the help of an extension officer, 200 farmers from 20 communities were randomly selected based on their farming records. Temperatures over the last four decades (1970-2009) increased at a rate of 0.04 (± 0.41) ˚C and 0.3(± 0.13)˚C from 2010-2011 which is consistent to the farmers (82.5%) observations. Rainfall within the districts are characterised by inter-annual and monthly variability. It experienced an increased rate of 0.66 (± 8.30) mm from 1970-2009, which was inconsistent with the farmers (81.5%) observation. It however decreased from 2010-2011 at a huge rate of -22.49 (±15.90) mm which probably was the reason majority of the respondents claim rainfall was decreasing. Only 64.5% of the respondents had adjusted their farming activities because of climate variability and change. They apply fertilizers and pesticides, practice soil and water conservation, and irrigation for communities close to dams. Respondents desire to continue their current adaptation methods but may in the future consider changing crop variety, water-harvesting techniques, change crop production to livestock keeping, and possibly migrate to urban centers. Lack of climate change education, low access to credit and agricultural inputs are some militating factors crippling the farmers’ effort to adapt to climate change.</p>

scholarly journals Effect of input credit on smallholder farmers’ output and income

2018 ◽  
Vol 78 (1) ◽  
pp. 98-115 ◽  
Author(s):  
Adam Iddrisu ◽  
Isaac Gershon Kodwo Ansah ◽  
Paul Kwame Nkegbe
Keyword(s):  
Smallholder Farmers ◽  
Northern Region ◽  
Northern Ghana ◽  
Primary Data ◽  
Future Research ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
Future Policy ◽  
On Farm

Purpose The purpose of this paper is to examine the effect of input credit on smallholder farmers’ output and income using Masara N’Arziki support project in Northern Ghana. Design/methodology/approach A cross-sectional primary data set was used to estimate the effect of project participation on farm output, yield and income using propensity score matching (PSM) methods. Findings The findings are that project participation is skewed towards experienced farmers with big-sized households and farms. The effect of project on outcomes is somewhat unsatisfactory in the sense that participation only raises output and yield, but not income. Research limitations/implications The paper only examined the project effect on farm outcomes among smallholder farmers participating in the programme in just one operational area in the Northern region. Future research should consider all the operational areas for an informed generalisation of findings. Practical implications Greater benefits to farmers from programme participation would require project management to review the contractual arrangement so that the high cost of input credit is significantly reduced. Originality/value The paper applied the PSM to estimate the effect of project participation on farm output, yield and income among smallholder farmers which is non-existent in the literature on the study area, at least as far as we know. This paper can inform future policy on the direction and nature of support for smallholder farmers in Northern Ghana.

Cropping Systems in Some Drought-Prone Communities of the Northern Region of Ghana: Factors Affecting the Introduction of Rice

2014 ◽  
Vol 9 (4) ◽  
pp. 475-483 ◽  
Author(s):  
Vincent Kodjo Avornyo ◽  
◽  
Osamu Ito ◽  
Gordana Kranjac-Berisavljevic ◽  
Osamu Saito ◽  
...  
Keyword(s):  
Crop Production ◽  
Crop Yields ◽  
Cropping Systems ◽  
Average Distance ◽  
Cropping System ◽  
Principal Component ◽  
Northern Region ◽  
Northern Ghana ◽  
Cattle Production ◽  
Factors Affecting

Despite the growing demand for rice in Ghana, domestic rice production remains low, resulting in the importation of about 70% of the rice consumed in Ghana. In spite of the fact that 39-47% of the 20-28% of Ghana’s total geographic area classified as inland valley wetlands is considered suitable for rice cultivation, less than 15% is presently being used. A household survey was therefore conducted in six communities, Fihini (F), Cheshegu (C), Dabogushei (D), Kpalgum (K), Zergua (Z), and Yoggu (Y), of the Tolon district in northern Ghana in order to identify factors affecting the introduction of rice into the cropping system. Maize, groundnut, rice, and yam were found to be the four major crops grown in the communities. Overall, 64% of respondents cultivate rice, but this figure is particularly low (30%) in F and Y communities. Rice is usually combined with two other major crops, most frequently maize and yam. In C, D, and K communities, about 90% of households cultivate at least, three out of the four major crops. The interview with farmers revealed that rice yield is 0.73 t/ha on average and significantly higher in K and C (1.06 t/ha and 0.93 t/ha, respectively) than in D (0.37 t/ha). The average distance from compound houses to rice and maize fields is significantly shorter in C, D, and K. Similarly, the rate of rice introduction in C, D, and K is higher than in F, Z, and Y, suggesting that distance to inland valleys may be one of the factors that influence the incorporation of rice into the cropping systems of these communities. Principal component analysis of crop yields and cattle number for the Y community revealed that rice growers tend to have higher crop productivity while cattle production is higher among non-rice growers. Within the community, the productivity of upland crops and balance between crop production and cattle production may be important factors that influence the incorporation of rice into the cropping system.

scholarly journals What determines Enset (Ensete ventricosum) production and its contribution to household income? Empirical evidence from Ethiopia

2021 ◽  
Vol 11 (1) ◽  
pp. 17-25
Author(s):  
Ejigu Mulatu
Keyword(s):  
Crop Production ◽  
Econometric Model ◽  
Household Head ◽  
Sampling Technique ◽  
Education Level ◽  
Market Participation ◽  
Two Stage ◽  
Factors Affecting ◽  
Gross Income ◽  
Market Center

Enset production in Ethiopia is seemingly limited to only consumption-based production and most of producers supplied small amounts of products to the market. This study was conducted with main objective of assessing factors affecting market participation of enset producers in Chena district in southwestern Ethiopia. Two-stage sampling technique was employed to select 101 representative enset producer households. Both primary and secondary data sources were used to gather necessary data for attaining specific objectives of the study. Both descriptive statistics and econometric model were used to analyze the collected data. A Heckman two stage model was employed to analyze the factors affecting households’ decision in market participation in sale of enset products and the amount of gross income earned. Econometric model analysis result showed that; sex of household head, education level, livestock owned, a distance from nearest market center, enset plantation size, and transport access were found to be significant in affecting the probability of market participation decision. In addition, education level, family size, distance from market center, enset plantation, and transport access affected the amount of gross income earned from sale of different enset products. The result suggests the need for stakeholders’ involvement to enable market-oriented production of crop to encourage farmers for better crop production and market supply to have increased amount of income and proper utilization of the crop. Int. J. Agril. Res. Innov. Tech. 11(1): 17-25, June 2021

Participation and output effect of a Block Farm Credit Programme in selected districts of Northern Ghana

2016 ◽  
Vol 76 (3) ◽  
pp. 348-361 ◽  
Author(s):  
Samuel A. Donkoh ◽  
Abdulai Eliasu ◽  
Edinam Dope Setsoafia ◽  
Isaac Gershon Kodwo Ansah
Keyword(s):  
Low Cost ◽  
Northern Region ◽  
Northern Ghana ◽  
Content Type ◽  
Farm Productivity ◽  
Food And Agriculture ◽  
Effect Model ◽  
Farm Credit ◽  
Increase Productivity ◽  
Positive Effect

Purpose The purpose of this paper is to examine the effect of the Ministry of Food and Agriculture (MoFA) Block Farm Credit Programme (BFCP) participation on crop output in four districts in the Northern region of Ghana. Design/methodology/approach Structured questionnaires were used to collect data from 240 beneficiary and non-beneficiary farmers of BFCP. The treatment effect model that accounts for selectivity bias was employed to examine the socioeconomic determinants of farmers’ decision to participate in the BFCP and the effect of BFCP participation on crop output. Findings Even though the BFCP participation increases output, inadequacy and late delivery of BFCP inputs, low publicity about the programme and difficulty in accessing the inputs from the districts agricultural officers are factors that prevent the full realization of the benefits of the programme. Improving extension services to create more awareness and a re-introduction of the BFCP to make inputs available and affordable to farmers can help boost farm productivity. Practical implications The positive effect of the BFCP means that the provision of low-cost production credit has the potential to increase productivity and improve incomes. Hence, MoFA should endeavour up scaling and properly managing the scheme. Originality/value This study is the first to evaluate the BFCP in Northern region of Ghana, particularly in relation to its contribution to crop value. The findings are very useful to advise policy by taking account of the programme deficiencies and enhance effectiveness.

Risk aversion in crop insurance program purchase decisions

2017 ◽  
Vol 9 (1) ◽  
pp. 62-80 ◽  
Author(s):  
Kaiyu Lyu ◽  
Thomas J. Barré
Keyword(s):  
Risk Aversion ◽  
Crop Insurance ◽  
Probit Model ◽  
Data Sets ◽  
Purchase Decisions ◽  
Cross Sectional ◽  
Maize Production ◽  
Content Type ◽  
Interaction Terms

Purpose The purpose of this paper is to contribute to the aforementioned literature on the linkage between economic activity and human preference by estimating the cross-sectional determinants of farmers’ participation in participation in crop insurance programs (CIPs) and identifying the impediments preventing the remaining farmers from participating. Design/methodology/approach Using the unique data sets of risk preference experiments and maize producer surveys pertaining to the maize production areas of China, this paper explores the determinants of farmers’ CIPs and scrutinizes the role of risk aversion in farmers’ CIP purchase decisions under the expected utility maximization framework. And a “non-zero threshold probit model” is used for the analysis. Findings The results show that risk aversion plays an important role in CIP purchase decision-making, not only in the form of its direct effect but also with regard to the interaction term and expected loss. Furthermore, if the insured amount is high enough, then risk aversion will no longer affect insurance purchase. Additionally, purchase experience, CIP environment (village purchase ratio), and contract items (insured amounts) are significant determinates in these decisions. There is no significant evidence to suggest that serious adverse selection exists in the sampling areas. Originality/value One theoretical model is established which considered not only general variables like farmers’ production and household information, but also conditions and terms in the insurance policies. The unique experimental method is used to measure farmers’ risk aversion. Both the role of risk aversion and its’ interaction terms with others in CIP participation are scrutinized to identify complicated influences under the context of real society.

scholarly journals Assessment of Ghana’s Comparative Advantage in Maize Production and the Role of Fertilizers

2018 ◽  
Vol 10 (11) ◽  
pp. 4181 ◽  
Author(s):  
Lilli Scheiterle ◽  
Regina Birner
Keyword(s):  
Structural Adjustment ◽  
Management Practices ◽  
Production Systems ◽  
Secondary Data ◽  
Household Survey ◽  
Probit Model ◽  
Northern Ghana ◽  
African Countries ◽  
Maize Production ◽  
Fertilizer Subsidies

Maize is one of the most important cereal crops produced and consumed in West Africa, but yields are far under their potential and the production gap leads to growing import bills. After the structural adjustment program, fertilizer subsidies again became a popular intervention to increase yields in most African countries. Ghana introduced fertilizer subsidies in 2008, with high government expenses. This study assesses the competitiveness of Ghanaian maize production and the significance of socio-economic and management variables in determining high yields in northern Ghana. Household survey data and secondary data were applied in a Policy Analysis Matrix (PAM) to test private and social profitability of the fertilizer subsidy policy. Additionally, a probit model is used to determine the characteristics that contribute to higher yields. The results suggest that production systems with Ghana’s above-average yields of 1.5 Mt/ha are profitable at household level and contribute to its economic growth, whereas production systems below this threshold report negative social profits and depend on government intervention. However, fertilizers did not increase the likelihood of a household to fall in the category of high-output production system, whereas the use of improved seeds and herbicides does. In conclusion, the analysis highlights the importance of additional measures, especially the use of supporting inputs as well as management practices, to increased maize productivity.

How effective are coping mechanisms in securing livelihoods against climatic aberrations?

2015 ◽  
Vol 7 (3) ◽  
pp. 359-374 ◽  
Author(s):  
Unmesh Patnaik ◽  
K Narayanan
Keyword(s):  
Household Head ◽  
Probit Model ◽  
Coping Mechanisms ◽  
Content Type ◽  
Household Level ◽  
Consumption Behaviour ◽  
Ex Post ◽  
Poor Households ◽  
Level Data ◽  
The Impact

Purpose – This paper aims to examine the consumption behaviour and effectiveness of coping mechanisms adopted by households living in disaster-prone regions of rural India to cope with climatic aberrations and extremes using household-level data. In developing countries like India, poor households living in rural regions face risks to their livelihood due to climatic aberrations like deficient monsoon spells and rainfall gaps. Although these risks are covariate, the impact depends on location and the relative capacity of the people to cope with them. Design/methodology/approach – Using household-level data, this paper attempts to examine the consumption behaviour and effectiveness of coping mechanisms adopted by households living in these areas to hedge against the risks. A tobit and a multivariate probit model is used in the process. Findings – Based on the empirical analysis, and subject to the assumptions and the usual limitations of data, the findings suggest that households resort to consumption smoothening by liquidating their assets or decreasing consumption. Originality/value – They adopt a wide variety of ex-post risk-coping measures with limited success to overcome the shocks to their livelihood. Household-specific characteristics like age and education level of the household head are important in the choice of a particular coping option along with other key variables.

Production and scale efficiency of maize farming households in South-Western Nigeria

2014 ◽  
Vol 41 (11) ◽  
pp. 1087-1100 ◽  
Author(s):  
Aziz Karimov ◽  
Bola Amoke Awotide ◽  
Taiwo Timothy Amos
Keyword(s):  
Crop Production ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Maize Production ◽  
Content Type ◽  
Farm Work ◽  
Maize Productivity ◽  
Use Efficiency ◽  
Socio Economic Variables ◽  
Work Education

Purpose – The purpose of this paper is to estimate production and scale efficiency of maize producing farms in South-Western Nigeria. Design/methodology/approach – This study is based on a semi-parametric approach and uses a combination of econometrics and linear programming to build two stage Data Envelopment Analysis (DEA) model. Findings – Model findings shows existence of production and scale inefficiencies in maize production. The study concludes that there is still room for efficiency improvements in the existence of the current maize production technology. It also finds several socio-economic variables such as, off-farm work, education, extension services and credit, which positively impact on technical efficiency of farm households. Practical implications – Efficiency indicators could be used to monitor resource use efficiency in crop production by local government. Social implications – Efficiency improvements will increase maize production in the country which in turn reduce social unrest and food insecurity. Originality/value – This study is one of the first which has employed DEA approach to analyze maize productivity and pioneer in using non-traditional bootstrapping approach to obtain robust efficiency scores in the case of Nigeria.

scholarly journals Ghana’s Fertiliser Subsidy Programme: Assessing Farmer Participation and Perceptions of its Effectiveness

2019 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Benjamin Tetteh Anang ◽  
Solace Kudadze
Keyword(s):  
Household Head ◽  
Probit Model ◽  
Educational Status ◽  
Herd Size ◽  
Northern Ghana ◽  
Extension Agents ◽  
Factors Affecting ◽  
The Government ◽  
Using Data ◽  
The Impact

In 2008, the Government of Ghana introduced a national fertiliser subsidy programme to promote the production of cereals in the country. Documented evidence of the impact of the programme, factors affecting participation, and the perceptions of farmers about its effectiveness remains scanty and hard to find. This study therefore sought to investigate the factors affecting participation in the subsidy programme as well as farmers’ perceptions about its effectiveness using data from a cross-section of 300 farm households in northern Ghana. The study employed a probit model to assess the factors affecting participation in the subsidy programme while descriptive statistics were used to present the findings on farmers’ perceptions. The results indicated that participation in the subsidy programme is significantly influenced by educational status and farming experience of the household head, contact with agricultural extension agents, herd size, degree of specialisation in rice production, use of farm mechanisation and location of the farm. Furthermore, farmers perceived the subsidy programme to be ineffective in terms of timeliness, availability and distribution of subsidised fertiliser, access to coupons (vouchers), and distance to fertiliser depots. The findings underscore the need to ensure adequate and timely supply of subsidised fertiliser, improve communication on the availability of both fertiliser coupons and subsidised fertiliser, as well as increase in the number of extension workers to enhance the effectiveness of the subsidy programme.

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