/pdf/issues-in-the-analysis-of-selectivity-bias-discussion-papers-57dgbpjbn6.pdf

Issues in the Analysis of Selectivity Bias. Discussion Papers. Revised.

In agricultural-dependent economies, extension programmes have been the main conduit for disseminating information on farm technologies, support rural adult learning and assist farmers in developing their farm technical and managerial skills. It is expected that extension programmes will help increase farm productivity, farm revenue, reduce poverty and minimize food insecurity. In this study, we estimate the effects of extension services on farm productivity and income with particular reference to agricultural extension services delivered by Association of Church-based Development NGOs (ACDEP). The study used cross-sectional data collected from 200 farm households from two districts in the Northern region of Ghana. The robustness of the estimates was tested by the use of regression on covariates, regression on propensity scores and Heckman treatment effect model. The study found positive economic gains from participating in the ACDEP agricultural extension programmes. Apart from the primary variable of interest (ACDEP agricultural extension programme), socio-economic, institutional and farm-specific variables were estimated to significantly affect farmers’ farm income depending on the estimation technique used. The study has reaffirmed the critical role of extension programmes in enhancing farm productivity and household income. It is, therefore, recommended that agricultural extension service delivery should be boosted through timely recruitment, periodic training of agents and provision of adequate logistics.

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Agricultural extension and its effects on farm productivity and income: insight from Northern Ghana

Edited by Steven Haggblade, Peter B.R. Hazell and Thomas Reardon Baltimore, MD: Johns Hopkins, 2008, pp. xxii + 490, £46.50 and £20.00, ISBN-13 978 0 8018 8663 8 and 978 0 8018 8664 5 The rural non...

Transforming the Rural Nonfarm Economy: Opportunities and Threats in the Developing World

Purpose




The purpose of this paper is to analyze determinants of farmers’ participation and credit rationing in microcredit programs using survey data from Ghana.




Design/methodology/approach




The authors use the Garrett Ranking Technique to analyze farmers’ reasons for participation or non-participation in credit programs, a probit regression model to estimate factors influencing farm households’ participation, and the Heckman’s sample selection model to identify factors influencing farm households’ probability of being credit rationed by microcredit programs.




Findings




The results reveal that farm households participate in credit programs because of improved access to savings services and agricultural loans. Fear of loan default and lack of savings are reasons for non-participation in credit programs. Furthermore, membership in farmer-based organizations (FBOs) and the household head’s formal education are positively associated with farmers’ participation in credit programs. The likelihood of farmers being credit rationed (i.e. their loan applications were either rejected or the amount of credit they applied for was reduced) is less likely among higher income farmers and members of FBOs such as farmer cooperatives and savings clubs.




Practical implications




The findings suggest that policy strategies aiming to improve access to savings and credit services should educate farmers and strengthen FBOs that could serve as entry points for financial service providers. Such market smart strategies have the potential to improve farmers’ access to financial services and reduce rural poverty.




Originality/value




Although existing studies have examined farmers’ participation in credit markets and credit rationing separately, the unique contribution of this paper is the analysis of participation in microcredit programs as well as the likelihood of farmers being credit rationed in Ghana.

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Agricultural credit provision: what really determines farmers’ participation and credit rationing?

This study explores smallholder cocoa farmers’ adoption decisions of agrochemical inputs in the Ghanaian cocoa industry using farm-level data collected from a sample of 838 farm households in four cocoa producing regions. Multivariate probit and Tobit models were used to examine the determinants of agrochemical inputs adoption and the extent of adoption, respectively. The result of the study showed that agrochemical management practices are complementary and thus the adoption of an agrochemical input is conditional on the adoption of others. Different household characteristics, household assets, institutional variables, and the perception of soil fertility status and the incidence of pests and diseases influence the adoption of individual agrochemical inputs. Furthermore, the result of the study showed that intensity (or extent) of agrochemical adoption (measured as farmers’ expenditure on agrochemicals) is also influenced by some socioeconomic and institutional variables such as extension services and fa...

Adoption of agrochemical management practices among smallholder cocoa farmers in Ghana

The study analyzes the effects of the determinants of farmer’s adoption of and investment in agrochemicals by collecting primary data from 156 sampled cocoa farmers in the Sefwi-Wiawso Municipality of Ghana. Descriptive statistical technique was employed to analyze demographic and farm-specific characteristics as well as the adoption rate and expenditure on agrochemicals. The findings highlighted the fact that, though a large proportion of farmers in the study area use agrochemicals, the intensity and amount spent to purchase these inputs are quite low. The Tobit regression model was used to identify and quantify the effects of the determinants of farmer’s investment in agrochemicals. The results generally indicate that the sex of the farmer, age of the farmer, household size, educational attainment, mean age of cocoa farms, farm size and farmers previous output are all important variables in explaining farmers decision to invest in agrochemicals. The paper concludes by recommending that strategic policies orienting towards improving the adoption rate as well as targeting farmers who are less likely to invest in agrochemicals is a pressing issue.

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Modelling Farmers Investment in Agrochemicals: The Experience of Smallholder Cocoa Farmers in Ghana

Abstract The adoption of sustainable agricultural practices (SAPs) has been recommended by many experts and international institutions to address food security and climate change problems. Global support for the Sustainable Development Goals has focused attention on efforts to up-scale the adoption of SAPs in developing countries where growth in populations and incomes compromises the resilience of natural resources. This study investigates the factors affecting smallholder farmers’ decisions to adopt SAPs (improved seed, fertilizer, and soil and water conservation) and the impacts of the adoption on farm income and food security, using data collected from Ghana. Food security is captured by the reduced coping strategy index and household dietary diversity. The multinomial endogenous switching regression model is utilized to address selection bias issues. Results show that farmers’ decisions to adopt SAPs are influenced by the social demographics of the households, plot-level characteristics, extension services and locations. Adopting all three SAPs has larger positive impacts on farm income and food security than adopting single or two SAPs. Our findings advocate for policies that enhance the quality of extension service and strengthen farmer-based organizations for the wider dissemination of adequate SAP information. Farmers should be encouraged to adopt SAPs as a comprehensive package for increasing farm income and ensuring food security. 

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Effects of sustainable agricultural practices on farm income and food security in northern Ghana

/pdf/effects-of-sustainable-agricultural-practices-on-farm-income-1ih8fx7m.pdf

Achieving food security is a global priority and a concern for most African countries, including Ghana. Food systems providing varied and healthy diets without compromising the natural resource base, such as integrated crop–livestock diversification, are important for development planning and policy. Using cross-sectional data obtained from 1284 smallholder households in northern Ghana, we used a double-censored Tobit model in a conditional mixed-process (CMP) framework to estimate the impact of crop diversification on household food security. The results showed that household-specific, socioeconomic, and institutional factors influence crop–livestock diversification and food security in northern Ghana. Moreover, we found that higher intensity of crop–livestock diversification translates into a greater probability of achieving food security. Crop–livestock diversification is essential to Ghana’s pursuit of the zero-hunger global agenda as it enhances food security without adversely affecting biodiversity and ecosystem health. Therefore, it should be incorporated into Ghana’s ongoing agricultural programme dubbed, planting and rearing for food and jobs.

/pdf/crop-livestock-diversification-in-the-mixed-farming-systems-57oybn6fwx.pdf

Crop–livestock diversification in the mixed farming systems: implication on food security in Northern Ghana

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.

Edinam Dope Setsoafia

Papers

Modelling Farmers Investment in Agrochemicals: The Experience of Smallholder Cocoa Farmers in Ghana

Effects of sustainable agricultural practices on farm income and food security in northern Ghana

Effects of sustainable agricultural practices on farm income and food security in northern Ghana

Crop–livestock diversification in the mixed farming systems: implication on food security in Northern Ghana

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