Adoption and income effects of agricultural extension in northern Ghana

Abstract

Relying on cross-sectional data from 300 smallholder rice farmers, the study examined the effects of agricultural extension on improved rice variety adoption and farm income in northern Ghana. A recursive bivariate probit (RBP)11RBP – Recursive bivariate probit. model was used to assess the effect of agricultural extension on adoption while regression with endogenous treatment effect model (RETEM)22RETEM – Regression with endogenous treatment effect model. was adopted to evaluate the effect of agricultural extension on farm income. The results indicate a statistically significant effect of agricultural extension on both adoption and farm income. According to the RETEM model, farm income of participants in agricultural extension increased by GH¢916 relative to non-participants. The study highlights significant factors affecting adoption and farm income and provides insight into measures to enhance technology adoption and farm income among smallholder agrarian households in Ghana and other developing countries.