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Journal ArticleDOI

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

22 Oct 2014-Research in Applied Economics (Macrothink Institute, Inc.)-Vol. 6, Iss: 4, pp 1-16

AbstractThe 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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Journal ArticleDOI
Abstract: 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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TL;DR: The structure of economics a mathematical analysis is universally compatible with any devices to read and an online access to it is set as public so you can download it instantly.
Abstract: the structure of economics a mathematical analysis is available in our digital library an online access to it is set as public so you can download it instantly. Our digital library spans in multiple countries, allowing you to get the most less latency time to download any of our books like this one. Merely said, the the structure of economics a mathematical analysis is universally compatible with any devices to read.

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Journal ArticleDOI
Abstract: 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...

35 citations


Cites background or result from "Modelling Farmers Investment in Agr..."

  • ...The positive influence of cocoa farm size on agrochemical expenditure was also reported by Nkamleu et al. (2007) and Danso-Abbeam, Setsoafia, and Ansah (2014)....

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  • ...However, Danso-Abbeam, Setsoafia, and Ansah (2014) observed a negative effect of family size on expenditure on cocoa agrochemicals, arguing that large family size may compete with limited family resources with fewer cash resources available for the purchase of chemical inputs....

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  • ...This suggests that adoption of fertilizer, insecticides and fungicides by cocoa farmers across the study areas is well above the rates reported by some previous studies (Aneani et al. 2012; Danso-Abbeam, Setsoafia, and Ansah 2014; Nunoo, Frimpong, and Frimpong 2014)....

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Journal ArticleDOI
TL;DR: It is recommended that policies by government and non-governmental organisations should be aimed at mobilizing resources towards the expansion of extension education and extension service should target younger farmers as well as provide information on alternative pest control methods in order to reduce pesticide use among cocoa farmers.
Abstract: Pesticides are a significant component of the modern agricultural technology that has been widely adopted across the globe to control pests, diseases, weeds and other plant pathogens, in an effort to reduce or eliminate yield losses and maintain high product quality. Although pesticides are said to be toxic and exposes farmers to risk due to the hazardous effects of these chemicals, pesticide use among cocoa farmers in Ghana is still high. Furthermore, cocoa farmers do not apply pesticide on their cocoa farms at the recommended frequency of application. In view of this, the study assessed the factors influencing cocoa farmers’ decision to use pesticide and frequency of pesticide application. A total of 240 cocoa farmers from six cocoa growing communities in the Brong Ahafo Region of Ghana were selected for the study using the multi-stage sampling technique. The Probit and Tobit regression models were used to estimate factors influencing farmers’ decision to use pesticide and frequency of pesticide application, respectively. Results of the study revealed that the use of pesticide is still high among farmers in the Region and that cocoa farmers do not follow the Ghana Cocoa Board recommended frequency of pesticide application. In addition, cocoa farmers in the study area were found to be using both Ghana Cocoa Board approved/recommended and unapproved pesticides for cocoa production. Gender, age, educational level, years of farming experience, access to extension service, availability of agrochemical shop and access to credit significantly influenced farmers’ decision to use pesticides. Also, educational level, years of farming experience, membership of farmer based organisation, access to extension service, access to credit and cocoa income significantly influenced frequency of pesticide application. Since access to extension service is one key factor that reduces pesticide use and frequency of application among cocoa farmers, it is recommended that policies by government and non-governmental organisations should be aimed at mobilizing resources towards the expansion of extension education. In addition, extension service should target younger farmers as well as provide information on alternative pest control methods in order to reduce pesticide use among cocoa farmers. Furthermore, extension service/agents should target cocoa farmers with less years of farming experience and encourage cocoa farmers to join farmer based organisations in order to decrease frequency of pesticide application.

32 citations


Cites background or result from "Modelling Farmers Investment in Agr..."

  • ...The cocoa sector represents more than half (70–100 %) of the income for roughly 800,000 smallholder farm families in Ghana, providing food, employment, tax revenue and foreign exchange earnings for the country (Appiah 2004; Anim-Kwapong and Frimpong 2004; Ayenor et al. 2007; Anang 2011; Danso-Abbeam et al. 2014)....

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  • ...This is comparable to that of the national average (Danso-Abbeam et al. 2014)....

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Journal ArticleDOI
TL;DR: The study recommends that cocoa farmers should be well educated on crop insurance and should be involved in planning the crop insurance scheme in order to conclude on the premium to be paid by them.
Abstract: Agriculture is an important sector in Ghana’s economy, however, with high risk due to natural factors like climate change, pests and diseases and bush fires among others. Farmers in the Brong-Ahafo region of Ghana which is known as one of the major cocoa producing regions, face these risks which sometimes results in crop failure. The need for farmers to therefore insure their farms against crop loss is crucial. Insurance has been a measure to guard against risk. The aim of this study was to assess cocoa farmers’ willingness to access crop insurance, the factors affecting willingness to pay (WTP) for crop insurance scheme and insurance companies’ willingness to provide crop insurance to cocoa farmers. Multi-stage sampling technique was used to sample 240 farmers from four communities in the Dormaa West District in Brong-Ahafo Region. The double-hurdle model shows that age, marital status and education significantly and positively influenced cocoa farmer’s willingness to insure their farms whiles household size and cropped area negatively influenced farmers’ willingness to insure their farms. Similarly, age, household size and cropped area significantly and positively influenced the premium cocoa farmers were willing to pay whiles marital status and cocoa income negatively influenced the premium farmers were willing to pay. The contingent valuation method shows that the maximum, minimum and average amounts cocoa farmers are willing to pay for crop insurance per production cost per acre was GH¢128.40, GH¢32.10 and GH¢49.32 respectively. Insurance companies do not have crop insurance policy but willing to provide crop insurance policy to cocoa farmers on a condition that farmers adopt modern cultivation practices to reduce the level of risk. The study recommends that cocoa farmers should be well educated on crop insurance and should be involved in planning the crop insurance scheme in order to conclude on the premium to be paid by them.

29 citations


Cites background from "Modelling Farmers Investment in Agr..."

  • ...Marital status is hypothesized to be positive due to the fact that married farmers will consider the survival of their family should any uncertainty strikes (Danso-Abbeam et al. 2014)....

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References
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Abstract: 1. Comparative Statics and the Paradigm of Economics 2. Review of Calculus (One Variable) 3. Functions of Several Variables 4. Profit Maximization 5. Matrices and Determinants 6. Comparative Statics: The Traditional Methodology 7. The Envelope Theorem and Duality 8. The Derivation of Cost functions 9. Cost and Production Functions: Special Topics 10. The Derivation of Consumer Demand Functions 11. Special topics in Consumer Theory 12. Intertemporal Choice 13. Behavior under Uncertainty 14. Maximization with Inequality and Nonnegativity Constraints 15. Contracts and Incentives* 16. Markets with Imperfect Information* 17. General Equilibrium I: Linear Models 18. General Equilibrium II: Nonlinear Models 19. Welfare Economics 20. Resource Allocation over Time: Optimal Control theory *New Chapter

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Abstract: The report is based on case studies in seven countries, and relies on new data to examine the relationship between land holding rights, and agricultural production. Land remains the most important source of economic livelihood, security, and social status in Sub-Saharan Africa. But the extent to which existing tenure rules, and practices influence agriculture, is unclear. The report further questions whether indigenous African land tenure systems, accord farmers sufficient security for long-term investment in agricultural production, and, examines as well the major effects of land registration and titling, on agricultural production. The study represent the first rigorous quantitative analysis of the relationship between land tenure security, and agricultural production in the context of contemporary political economies of African countries.

492 citations


Journal ArticleDOI
Abstract: Studies on input adoption consider education as one of the most important factors that affect adoption decisions. However, very little is known about the spill-over effect of intra-household education on the adoption process and about the impact of education on adoption decisions under different socioeconomic conditions. We investigate these two issues using a discrete choice model. The results indicate that the decision making process is a decentralised one in which educated adult members of the household actively participate in the decision making process. This casts doubt on the traditional assumption that the household head is the sole decision maker. The results reveal that there is a substantial and statistically significant intra-household spill-over effect of education on the adoption decision of households. The results of the study also show that the coefficient of the education and the environment interaction variable is negative and statistically significant. This demonstrates that education and socioeconomic environments could be substitutes in modern environments and complementary in traditional ones. This implies that the expansion of education in traditional areas may be more attractive than in modern areas since education is usually the only means to enhance the ability of farmers to acquire, synthesise and respond to innovations such as chemical fertiliser.

369 citations


"Modelling Farmers Investment in Agr..." refers result in this paper

  • ...This also confirms the previous studies by Nkamleu & Adesina (2000) and Asfaw & Admassie (2004)....

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Journal ArticleDOI
Abstract: Low use of chemical inputs has been cited as a major factor limiting productivity growth of agriculture in most of sub-Saharan Africa. A wide range of variables influence adoption of such input. It is important to understand the role of these factors to ensure the development and implementation of more effective programs to promote agricultural input use. This study examines the effect of socio-economic factors on the likelihood of using chemical fertilizer and pesticide in peri-urban lowland agricultural systems in Cameroon. Rather than the univariate probit model which is commonly used, the bivariate probit model is employed to take account of the correlation between the disturbances. Results generally indicate that lowland farmers who are more highly educated, those with temporary land rights and those whose fields are more distant from the homestead are more likely to use chemical fertilizer. In the same way, lowland male farmers, those who have contact with extension, those who have temporary land rights or those practising continuous cropping are more likely to use chemical pesticides.

148 citations


"Modelling Farmers Investment in Agr..." refers background or result in this paper

  • ...Farmers Education (FEDU) is found to correspond positively with agrochemical adoption (Nkamleu and Adesina 2000, Asfaw and Admasie 2004)....

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  • ...Previous studies in Africa by Malton (1994); Nkamleu & Adesina (2000) reported that men are generally more likely to adopt new agricultural technologies than women....

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  • ...This also confirms the previous studies by Nkamleu & Adesina (2000) and Asfaw & Admassie (2004)....

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Journal ArticleDOI
Abstract: The paper examines the economic performance of a large number of African countries using an international comparable data set and the latest technique for analysis. The paper focuses on growth in total factor productivity and its decomposition into technical change and efficiency change components. The analysis is undertaken using the data envelopment analysis (DEA). The present study uses data of 16 countries over the period 1970–2001. It was found that, globally, during that period, total factor productivity has experienced a positive evolution in sampled countries. This good performance of the agricultural sector was due to good progress in technical efficiency rather than technical progress. The region suffered a regression in productivity in the 1970s, and made some progress during the 1980s and 1990s. The study also highlights the fact that technical change has been the main constraint of achievement of high levels of total factor productivity during the reference period in sub-Saharan Africa. Contrariwise, in Maghreb countries, technological change has been the main driving force of productivity growth. Finally, the results indicate that institutional factors as well as agro-ecological factors are important determinants of agricultural productivity growth.

141 citations


"Modelling Farmers Investment in Agr..." refers methods or result in this paper

  • ...This also confirms the previous studies by Nkamleu & Adesina (2000) and Asfaw & Admassie (2004)....

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  • ...Many studies (Nkamleuet al., 2007, Nkamleu & Tsafack 2007; Nkamleu, 2004; Holloway et al., 2004; Oladade, 2005; Degu et al., 2000)have used this procedure to study farmer’s decision to adopt technology packages....

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  • ...This is quite not different from the results obtained by Nkamleuet al., (2007) who reported that Ivorian farmers are less likely to use agrochemicals on their older cocoa farms....

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  • ...This supports the previous studies by Polson & Spencer (1991) and recent study by Nkamleuet al., (2007) who documented positive correlation between total area cultivated and adoption of agrochemicals....

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  • ...A few recent examples include Silberberg and Suen (2001) and Nkamleuet al., (2007) and therefore the theoretical framework for modeling farmer’s investment in agrochemicals is similar to the one outlined....

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