Access to credit, rice productivity and farmers’ welfare in Ghana: a conditional mixed process approach

This study analyzed comparative gender differences in profitability and technical efficiency of rice production among smallholder rice farmers in the North Central Nigeria. Multistage sampling technique was employed. Data were collected through the use of well-structured questionnaires from 1200 male smallholder rice farmers and also 1200 female sampled small scale rice farmers making a total of 2400 rice farmers. The following statistical and econometrics tools were used to achieve the specific objectives; descriptive statistics, budgetary technique, stochastic production frontier. The results show that the average age of the sampled male rice farmers was 37 years, while female rice farmers was 48 years. About 63.2% of the male farmers had formal education and also about 79.6% of the female farmers also had formal education. The results further show that rice production was profitable for both male and female small-scale rice farmers. The estimated mean value of technical efficiency attained by small scale male farmers was 85.3%, while female rice farmers was 62.7. The statistically significant factors influencing rice production for male small-scale farmers were: land size (P<0.01), labour (P<0.05), rice seed (P<0.05), fertilizer (P<0.01) and agrochemical (P<0.01), while the statistically significant factors influencing rice production for female rice farmers were: land size P<0.01, labour (P<0.01) rice seed (P<0.01) and agrochemical (P<0.05). The statistically significant factors influencing technical inefficiency of the male rice farmers were education (P<0.1), age (P<0.1), land size (P<0.05), experience (P<0.01), household size (P<0.05) extension contact (P<0.1) and cooperatives (P<0.01). The statistically significant factors influencing technical inefficiency for female farmers were: education (P<0.10), land size (P<0.05), experience (P<0.05), household size (P<0.05) and cooperatives (P<0.1). The major constraints faced by male small scale rice farmers were: poor access to credit facilities, shortage of farm input, poor soil fertility, inadequate rainfall, and high cost of farm input. The female small scale rice farmers were also faced with the following constraints: poor soil fertility, problems of land ownership/discrimination, poor credit facility, high cost of labour, inadequate rainfall. Therefore, this study recommends that: Farm inputs like improved seed varieties, fertilizer inputs and agro-chemical inputs should be provided to both male and female smallholder rice farmers by Nigerian government and Non-Governmental Organizations at affordable rate and at curate timely, extension n services should also be made available to small-scale rice farmers on the modern rice Production, male and female farmers should be encouraged to participate in cooperative societies so as to access loan to be able to use technologies in rice production which will further increase their production capacity that might lead into increase in income, improve their livelihood and food security

The purpose of this study was to determine the inhibiting factors for the welfare of farmers in the village of Sangia Makmur, District Bombana Kabaena Utara District in the village of Sangia Makmur, North Kabaena district, Bombana district. The population in this study was rice farmers. The sampling method was carried out in a simple random sampling of 30 people. Data obtained in this study were analyzed descriptively quantitatively. The inhibiting factor for the welfare of rice farmers in the village of Sangia Makmur is, the variables of the Number of Families, Land Area, and Capital Loans have a significant correlation with welfare. Based on the results of the discussion on the relationship of welfare inhibiting factors to the welfare of lowland rice farmers in Sangia Makmur Village, a conclusion can be drawn that the welfare of paddy rice farmers in Sangia Makmur Village can be categorized as being in the poor line but some farmers are still constrained by the high number of family dependents, loans capital, and land area. Relationship The inhibiting factors for the welfare of lowland rice farmers in Sangia Makmur Village are, the variable amount of family dependents, land area, and capital loans have a significant relationship to the welfare

Gender inequality in access to land and other farm inputs has been identified as one of the causes of the declining productivity in agriculture and this varies across farm enterprises and regions. We examined gender differences in rice productivity in Anambra state Nigeria and identified the drivers of gender gap. Descriptive statistics, Likert scale and multiple regression analysis were used to analyse the data collected. The result showed that most of the rice farmers were male, married, educated, and within the average age of 45 years. The average household size was 7 persons while they had an average of 11 years farming experience. Finding on their productivity showed mean farm sizes of 1.02has and 0.8ha for male and female farmers respectively while average outputs of 668kgs/ha and 585kgs/ha were harvested by the male and female farmers respectively. Farm size, household size, and quality of seed planted had positive effect on the output of rice while gender and marital status had negative effect. The women had difficulty accessing necessary inputs for rice production, especially land. The drivers of gender gap in rice productivity in the study area were access to land, input and labour. The study concluded that gender has a significant negative influence (against female farmers) on the output of rice in the area and rice production in the area was dominated by the male gender who had more access to major farm inputs than the female. The study recommended that for a gender responsive Agriculture, Government should review land ownership, and communities should give women access to communal land. Also, the rights of male and female farmers to trainings, education, financial support, farm inputs and labour should be critically addressed by the ministry of Agriculture and other stake holders.

This study focuses on determinants of the agricultural loan decision-making process of rice (Oryza sativa) farmers in Abuja, Nigeria, using the Heckman two-stage model and factor analysis. This study was designed specifically to achieve the following objectives: determine the socio-economic profiles or characteristics of rice farmers, analyze the costs and returns of rice production, evaluate factors influencing rice farmers’ decision to obtain an agricultural loan, evaluate socio-economic factors influencing the amount of the agricultural loan, and determine the constraints or problems facing rice farmers. A multi-stage sampling design was employed. A total sample of one hundred (100) rice farmers was included, and primary data were utilized. Data were obtained through the use of a well-structured and well-designed questionnaire. Statistical and econometric tools used in analyzing data included descriptive statistics, gross margin analysis, financial analysis, the Heckman two-stage model, and principal component analysis. The results show that 63% of rice farmers were between the age of 31–50 years. The mean age was 41.90 years. About 65% of rice farmers were male, and 54% of them were married. Also, 93% of rice farmers had formal education and were literate. The household sizes were large, with an average of six persons per household. An average of 71,550 nairas was the loan amount granted to rice farmers by financial institutions. The average farm size amounted to 1.49 hectares. Factors influencing the decision of rice farmers to obtain agricultural loan included age (P < 0.01), marital status (P < 0.05), household size (P < 0.10), educational level (P < 0.05), farm size (P < 0.05), farm and non-farm income (P < 0.10), farm experience (P < 0.05), collateral property (P < 0.05), extension services (P < 0.10), and awareness of loan or credit facilities (P < 0.05). Rice production was profitable with a net farm income of 744,300 nairas. The gross margin ratio of 0.95 means that 95 kobos covered profits, taxes, expenses, interest, and depreciation for every naira invested in rice production activities. Socio-economic factors statistically and significantly influencing the amount of agricultural loan obtained by rice farmers included (P < 0.05) sex (P < 0.01), household size (P < 0.05) and educational level (P < 0.01). The constraints facing rice farmers in obtaining the agricultural loan and production activities included lack of collateral property, lack of fertilizer input, poor-quality feeder roads, lack of credit facilities, inadequate labor input, and complicated and costly administrative procedures to obtain a loan. It is recommended that agricultural loans be made available to rice farmers in sufficient amounts and at low-interest rates. Also, farm inputs, fertilizer inputs, improved seeds, and chemicals should be made available to rice farmers

Trade in specialty agricultural products remains a significant foreign exchange earner for many developing countries that largely depend on the agricultural sector for their national income. With the changing consumers’ tastes and preferences, production and marketing of specialty products could improve incomes of farmers particularly when such changes are accompanied by price increments for quality produce. The existing specialty varieties are bred to suit specific agro-ecological conditions and the preferences of both farmers and consumers. The cultivation of specialty varieties further appropriates the small-farm sector in most developing countries, characterized by small fragmented plots. It is therefore important to develop specialty agricultural products that are suited for small-scale agricultural production and could significantly improve the welfare of small-scale farmers. Rice production has contributed significantly to food security and poverty reduction among rural farming households of Vietnam for the past three decades. For instance, it accounts for 30% of total value of crops, and its cultivated area has consistently increased by 1.2% annually since 1986, resulting in annual increments by 1 million tons (Appendix 5). Over the years, the Government has focused on promoting export-oriented production, resulting in substitution of hybrid varieties by indigenous and traditional varieties including specialty rice (SR). However, adverse effects of climate change, poor yields, high production costs, and rice price volatility have led to declining incomes of rice farmers. The negative effects are exacerbated by the dwindling arable land, dysfunctional marketing farmer association, and limited investment in domestic rice value chains. As a mitigation measure, the Government is promoting SR production which demand is quickly growing in Vietnam by reviving the dysfunctional farmer associations to facilitate collective action in adoption of technologies, access to markets, and marketing information. Farmer associations play a significant role in knowledge transfer to farmers thereby facilitating adoption of SR varieties, which has been effective in minimizing pest resurgence from mixed variety cropping with variations in harvesting periods. The farmer associations also strive to overcome problems of information asymmetry thus ensuring that small-scale farmers fetch better prices for quality rice with brand names. With all these initiatives, several questions remain unanswered. For instance, the drivers of adoption of SR varieties and intensity of their adoption are not yet well understood. The existing literature focused on the role of collective action in facilitating adoption of hybrid and SR varieties although in most cases only qualitatively. None of the studies analyzed the effects quantitatively as we do in our study. Further, the effectiveness of such initiatives depends on farmers’ preferences for marketing channels, an aspect that has not been fully studied before, at least in the SR context. From a New Institutional Economics perspective, market imperfections result in information asymmetries that also hinder technology transfer to farmers and access to input and output markets. This is also relevant in our study particularly in the three topics related to adoption of SR, collective action and choice of marketing channels. In spite of the increasing demand for SR varieties along with other value-added products which has been highlighted in recent studies, small-scale rice farmers still lack knowledge and marketing information in order to access such high-value markets. Besides, specialty crops contribute to biodiversity and improvement of local livelihoods. Therefore, more attention should be paid to the relation between specialty variety adoption and increasing production efficiency. This dissertation combines three essays on the adoption of SR, effects of collective action on technical efficiency (TE) and farmers’ choice of marketing channels. We address these topics by using cross-section data collected from 336 rice farmers in the Red River Delta (RRD) region who were interviewed between October and December 2014. The RRD is one of the major rice producing regions of Vietnam, supplying specialty and high-value rice varieties to the domestic markets including Hanoi and other cities. The question whether smallholder farmers in developing countries can be integrated successfully into high-value supply chains by adopting specialty varieties remains unanswered. Also, and particularly for SR, the drivers of adoption and intensity of SR varieties and the subsequent choice of marketing channels are not clear yet. In the first essay, we follow the adoption behavior model based on the utility maximization criterion and adopt a two-step approach, starting with a Probit model for determinants of SR adoption then analyzing the intensity of adoption using a Tobit model. In general, the case of SR adoption in the RRD region contributes new insights into our understanding of the adoption decisions, especially with regard to the role of social networks and farmer group membership in rural areas. Social networks have a positive influence on SR adoption through knowledge exchange and collective decision-making in the groups. Based on the findings, we recommend strengthening farmers’ networks to enhance SR production. The second essay provides an overview of current literature on collective action and its effects on rice production efficiency in developing countries. We analyze the effects of collective action (via SR farmer associations) on TE by using a Translog stochastic model. In the first part of our results, factors such as expenditure on labor and expenditure on other costs have a statistically significant impact on the SR yield. The results show a small variation in production efficiency among the households sampled. The average TE score of SR farmers in the RRD region is 77.1%. In this regard, farmers need to increase their productivity and efficiency as well as produce more SR varieties to increase their incomes from rice production. In the third essay, we finally examine the existing rice marketing channels and farmers’ choice of these channels using a multi-specification model from 280 farmers growing SR varieties. We employed a Multinomial logit model to examine the drivers of farmers’ choice of marketing channels. The results reveal that even though local collectors and wholesalers dominate the rice value chain in rural areas, farmers still prefer modern marketing channels (via collective marketing channels) because of higher price and reduction in transaction costs. This has been augmented by the expansion of information sources available to farmers.

The study sought to verify the major socio-economic determinants of farm income and rice productivity among rice farmers in the study area. A multi-stage stratified random sampling was used to select the respondents. Two major blocks of agricultural communities were delineated in the study area constituting of twelve (12) communities. Out of these, four (4) communities were randomly selected. Fifteen (15) rice farmers were then selected from each of them giving a sample size of sixty. Primary and secondary data were employed for this research. The primarydata were collected using structured questionnaires. Multiple regression models with three functional forms were used to determine the production and income functions. Results showed that the influence of land and years of education on the farmers’ rice output were statistically significant at 5% level. Test for multicollinearity ruled out interaction between years of formal education and extension contact. Generally, it was proved that education and other socioeconomic factors had significant effect on rice farmers’ output as well as their incomes. Extension contact had no significant effect on the rice farmers’ output in the study area. However, only two explanatory variables, labour and farming experience showed significant effects on farmers’ incomes indicating high labour intensity among the farmers. Four recommendations, including the need for adult education plus improvement of the subsidy delivery system and mechanization; retraining of extension staff and development of ruralinfrastructure were made.

Economic analysis of Upland and Swamp rice production in Ebonyi State, South east Nigeria was studied and analyzed in 2011 farming season. Purposive and multistage random sampling technique was used to select agricultural blocks, circles and rice farmers. The sample size was 240 rice farmers (120 Agricultural Development Programme (ADP) Upland rice contact farmers and 120 Agricultural Development Programme (ADP) Swamp contact rice farmers). Data for the analysis were collected from a structured questionnaire. The result indicates that mean ages of upland rice farmers was 37.3 years while swamp rice farmers had 39.2 years. The mean farming experience for both farmers were 8.5 years (upland rice farmers) and 8.8 years (swamp rice farmers) with farm sizes of 1.2 and 1.1 hectares for upland rice farmers and swamp rice farmers respectively. Upland rice farmers had an annual farm income of 189,410.00 NGN (1,222USD) as against 201,166.00 NGN (1,297.85USD) for Swamp rice farmers. The multiple regression (Cobb Douglas) estimates of the determinants of output of upland rice showed that coefficients age, farming experience, farm size, variable inputs and farm income were positively signed at given levels of probability while capital inputs was negative. The Cobb Douglas regression estimates of the determinants of output of Swamp rice showed that the coefficients of education, labour cost, farm size, variable inputs and farm income were positively signed and significant at given levels of probability as well as capital inputs which was negative. The result indicates that net profit from Upland rice cultivation was 92,800.00 NGN (598.71USD) with a Benefit Cost Ratio of N1.55 (1.56USD). The net profit from Swamp rice cultivation was 132,090.00 NGN (852.19USD) and a Benefit Cost Ratio of 1.75 NGN (1.75USD). Access to credit to rice farmers, subsidy on farm inputs, dissemination of improved rice technologies by extension agents and formation of farmer groups were advocated for increased rice production.

The purposes of this study were to determine the level of adoption of integrated crop management ’jajar legowo’ innovation in lowland rice cultivation, related factors, household income of lowland rice farmers after adopting the innovation, and to know the relationship between the adoption rate and the welfare of farmers. This research was conducted in Palas Jaya and Pulau Tengah Villages, Palas District, South Lampung Regency. Respondents were 68 rice farmers taken proportionally and randomly from each of the two villages. Adoption of ‘jajar legowo’ planting system in Palas Jaya and Tengah Tengah Villages of Palas District, South Lampung Regency was high (92.64 percent). Factors related to the adoption were characteristics of innovation, characteristics of farmers, the role of extension workers, and household welfare of wetland rice farmers. Annual household incomes of rice farmers adopting integrated crop management were Rp24,251,188.24 consisting of Rp18,310,012 from on farm, Rp5,058,823.53 from nonfarm and Rp882,352.94 from off-farm activities. There is a significant correlation between the level of adoption of innovation in integrated crop management of paddy rice and household welfare of rice farmers.Key words: adoption, income, welfare

This study examined factors influencing inorganic fertilizer use among rice farmers in Ebonyi state, Nigeria. A total of 120 rice farmers were purposively selected and used for the study. Data were collected by use of interview schedule and analyses were conducted using frequency, percentage, mean score and regression. Results showed that the respondents applied mostly urea fertilizer (54.2%) usually once (55.8%) on rice farm using broadcast method (100%). The amount of fertilizer applied per hectare in rice farm was 85.63kg. Rice farmers’ inorganic fertilizer use were influenced by number of years spent in school, years of experience in rice production, total size of farm used for rice, total annual income earned from rice production and number of extension agent visit. Surprisingly, rice output (t =1.243; p≥0.05) had no significant influence with inorganic fertilizer use. Government through the ministry of agriculture should organize workshops and train farmers on inorganic fertilizer use so as to enhance adequate use. Also, government and other relevant stakeholders in agriculture should ensure that inorganic fertilizers are available, accessible and affordable to farmers at all time so that they could maximally utilize it in rice production.

Increasing Rice Production in Sub-Saharan Africa: Challenges and Opportunities

Sustainability of the rice production and farmers’ income in Nigeria raises a serious concern due to the rising costs of production inputs and other factors beyond farmers’ control. As a result, the study compared the cost and returns of rice production in North central, Nigeria. A multistage sampling technique was used to select 387 rice farmers in the study area. Descriptive statistics, gross margin analysis and seeming unrelated regression were used to analyze the dataset collected. The findings revealed that most of the rice farmers were male, averagely young and have at least 9 family members in their respectively households. Results from Kwara State showed that total cost is higher among the upland rice farmers compared to their lowland counterparts, but reverse was the case in term of net profit, as this favoured the lowland rice farmers. For Niger State and pooled data, the lowland rice farmers had higher net profit than the upland rice farmers. Seemingly unrelated regression estimates indicated that costs associated with fertilizer, herbicide, seed, pesticide and labour used were significant and influencing factors affecting the revenue of rice farmers in the study area. While inaccessibility to cheap farm inputs was the major constraint affecting the rice farmers, other challenges include lack of storage, inadequate rainfall and inadequate credit facilities. The study recommended seamless access to improved rice varieties by the farmers as this can scale up adoption of improved technologies, boost production and ultimately the net revenue of rice farmers. Farmers are also advised to join and/or form a registered occupational groups through which credit facilities can easily be accessed, to expand the farming operations because of the positive and complementary role of social group and access to credit.

Agriculture remains a dominant economic sector in many developing countries including Ghana. Agricultural production is however dominated by smallholders who are usually classified as being resource-poor. Ensuring that smallholder farmers make efficient use of scarce resources in their production activities is therefore very important to help raise the level of productivity at the small farm sector. Improving agricultural productivity also requires an understanding of the current productive capacity of farmers given the level of technology as well as the factors affecting their efficiency. The current study was therefore carried out to estimate the technical efficiency of smallholder rice farms in Northern Ghana as well as the determinants of inefficiency using data from a cross-section of 300 smallholder farm households. A multi-stage stratified random sampling approach was used to collect data which was fitted to a stochastic frontier production function incorporating an inefficiency effects model. A quadratic form of the production function was specified to represent the production frontier of rice farms based on a preliminary test of the appropriate functional form. The study revealed that the mean technical efficiency of rice farms was 63.8 percent, indicating that farmers are producing below their maximum potential at the current level of technology. Hence without increasing the current level of input use, producers in the study area can potentially increase their efficiency by 36.2 percent at the current level of technology. Apart from seed, all the conventional inputs were significant in their influence on rice output. The determinants of technical efficiency were gender of the farmer, years of formal education, membership of farmers’ association and specialization in rice production. Male farmers as well as less educated farmers were more efficient in production. Similarly, farmers who belonged to a farmers’ organization as well as producers with higher degree of specialization in rice production were found to be more efficient. Irrigation shifted the production frontier upwards indicating higher productivity with irrigation use. Similarly, farmers who double-cropped their fields and farmers in the Northern Region were located on a higher production frontier. The study recommends the expansion of irrigation access to farmers as well as incentivizing farmer-based organizations to enhance the efficiency of farmers in the study area. Access to irrigation will also facilitate double cropping leading to improved rice production in Northern Ghana. Furthermore, specific factors limiting production efficiency of farmers in the Upper East Region require investigation and remedies to improve the efficiency of farmers in that area.

Rice farming is a critical agricultural activity that sustains millions of people worldwide, especially in Asia, which produces around 90% of the global rice output. Countries like the Philippines remain significant rice producers but still depend heavily on imports due to challenges such as labor costs, inconsistent rainfall, land management, and limited government support (PhilRice, 2018). Improving domestic rice production is vital for food security, livelihood, and economic stability in these countries. In the Philippines, the Registry System for Basic Sectors in Agriculture (RSBSA) was developed as a comprehensive database of farmers, fisherfolk, and farm laborers. It serves as a targeting mechanism for government programs and support services aimed at improving agricultural productivity and farmer welfare. Despite the importance of RSBSA in delivering timely assistance and fostering agricultural development, the awareness and access to these support services among rice farmers at the local level, such as in Ajuy, Iloilo, remain underexplored (Assessment of Targeting and Financing Aspects of RSBSA-AIP, 2024). Rice farmers' awareness of the Registry System for Basic Sectors in Agriculture (RSBSA) is generally positive, with many farmers understanding its purpose and learning about it mainly through barangay officials; however, some farmers face barriers such as distance and limited access to social media, which affects their access to support services linked to the RSBSA. The significance of RSBSA for farmers lies in its role as a crucial policy tool for delivering agricultural benefits, assistance, and interventions, which help improve their productivity, access to government support, and overall welfare in the agricultural sector (Reyes & Gloria, 2017; Reario, 2024). Existing research points to challenges faced by rice farmers in accessing agricultural support and extension services. Many farmers are aware of programs but have limited participation or access to training and incentives. Moreover, while data from RSBSA assist in policy formulation, there is a research gap regarding how well rice farmers in specific communities understand and utilize this system and the support services linked to it (PhilRice 2018; Assessment of Targeting and Financing, 2024). This study aims to bridge this gap by assessing the awareness of rice farmers in Ajuy, Iloilo, toward the RSBSA and their access to related support services. Understanding farmers' knowledge and engagement with these systems is crucial in designing better outreach, enhancing program coverage, and ultimately improving rice farming productivity and sustainability at the local level.

Women make significant contribution to rice farming, processing, and marketing, but only have limited access to technical knowledge and technologies that can reduce their drudgery and labor bottlenecks, and provide them with additional income. Women also oversee the reproductive responsibilities. This paper comparatively investigates the role of women in rice farming across four countries (Burkina Faso, Côte d'Ivoire, Madagascar, Sierra Leone) by examining the labor time distribution and its resulting income for men and women. It also assessed the determinants of their labor inputs in different rice farming environments. Results show that women and men spend on average 1–3 h per day in rice production, making 45–135 working days of involvement in annual rice cultivation. Looking into the distribution of labor input provision in productive activities, it is found that apart from the specific activity of rice parboiling, which is practiced in certain countries mostly by women, men are the ones more engaged in rice farming. The specific labor input depends on several factors including the farm size, time spent on non-agricultural activities, and access to production equipment. These results provide the first evidence to that women farmers do not necessarily spend more time than men in rice cultivation in Africa, as it is often assumed. Certainly, across countries and systems, and also within male and female farmers categories, there are heterogeneous labor inputs and associated determining factors and incomes. Male farmers earn higher income than female farmers in the different productive activities, except only for rice parboiling. This finding indicates that increasing labor input for rice would not result in higher income for female farmers. Female farmers might find better options in other agricultural activities such as food processing.

The study estimated the determinants of technical efficiency of new rice for Africa (NERICA) in Ekiti State of Nigeria. It specifically estimated technical efficiency of NERICA production among the female and male farmers. Seven villages where NERICA diffusion activities trials were conducted werechosen through purposive sampling and data for the study were obtained from a total of 315 respondents who provided useful information through face-face interview using structured pre-tested questionnaires. Data analysis was done using Cobb – Douglas Stochastic parametric frontier model to elicit the technical efficiency. The results for all the rice farmers indicated that positive coefficient of farm size, family labour, hired labour quantity of fertilizer and herbicide used indicates that as each of these variables are increased, rice output increases. The negative sign of the seeds implies that seed is being over utilized suggesting an inefficient use of planting material in the production of rice in the study area. The mean technical efficiency is 75 % which implies that on the average, the respondents were able to obtain only 75 % of the optimal output from a given mix of production inputs. The study also showed that the mean technical efficiencies for female and male farmers were 71 % and 84% respectively. Therefore, it is recommended that more female farmers should be encouraged to plant NERICA varieties and they should be provided with credit and land tenure security. Also, concerted effort should be made to increase farmers’ farm size and they should be encouraged to use more fertilizer irrespective of their gender.Key words: Variables, Technical, Efficiency, NERICA, Rice, Farmers and Africa.