Effect of input credit on smallholder farmers’ output and income: Evidence from Northern Ghana

Iddrisu, A and Ansah, I G K and Nkegbe, P K (2018) Effect of input credit on smallholder farmers’ output and income: Evidence from Northern Ghana. Agricultural Finance Review (TSI), 78 (1). pp. 98-115. ISSN 0002-1466

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Abstract

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.

Item Type:	Article
Divisions:	Research Program : West & Central Africa
CRP:	UNSPECIFIED
Uncontrolled Keywords:	Ghana, Participation, Propensity score matching, Farmer support projects, Input credit, Smallholder farmers, farm outcomes
Subjects:	Others > Ghana Others > Smallholder Farmers Others > Smallholder Agriculture Others > African Agriculture Others > Agricultural Economics
Depositing User:	Mr Ramesh K
Date Deposited:	13 Apr 2018 06:17
Last Modified:	16 Jul 2018 09:11
URI:	http://oar.icrisat.org/id/eprint/10565
Official URL:	http://dx.doi.org/10.1108/AFR-05-2017-0032
Projects:	UNSPECIFIED
Funders:	UNSPECIFIED
Acknowledgement:	UNSPECIFIED
Links:	Google Scholar

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