Abstract
Maize is one of the most important cereal crops produced and consumed in West Africa, but yields are far under their potential and the production gap leads to growing import bills. After the structural adjustment program, fertilizer subsidies again became a popular intervention to increase yields in most African countries. Ghana introduced fertilizer subsidies in 2008, with high government expenses. This study assesses the competitiveness of Ghanaian maize production and the significance of socio-economic and management variables in determining high yields in northern Ghana. Household survey data and secondary data were applied in a Policy Analysis Matrix (PAM) to test private and social profitability of the fertilizer subsidy policy. Additionally, a probit model is used to determine the characteristics that contribute to higher yields. The results suggest that production systems with Ghana’s above-average yields of 1.5 Mt/ha are profitable at household level and contribute to its economic growth, whereas production systems below this threshold report negative social profits and depend on government intervention. However, fertilizers did not increase the likelihood of a household to fall in the category of high-output production system, whereas the use of improved seeds and herbicides does. In conclusion, the analysis highlights the importance of additional measures, especially the use of supporting inputs as well as management practices, to increased maize productivity.
Highlights
Addressing persistent yield gaps remains a challenge in West Africa
Average maize yields fluctuate between 1.2 and 1.9 metric tons (Mt) per hectare, whereas on-station and on-farm trials suggest that yields average between 4 and 6 Mt/ha of maize are attainable in the country [4]
This study empirically investigates whether Ghana has a comparative advantage in maize production under current world prices and domestic policies
Summary
Addressing persistent yield gaps remains a challenge in West Africa. Achieving higher yields is important for food security, improved diets, and higher income but it is a precondition to foster crop use diversification for development of both food and non-food bio-based products [1]. Agriculture is an important sector in Ghana, crop production accounts for about 23% of Ghana’s gross domestic product (GDP) and employs one fourth of the country’s households [2]. Compared to the bimodal rains in the south, the north suffers from unfavorable climatic conditions for crop production due to the single rainy season and high temperatures, agriculture it is still the main source of employment (over 60%) and maize is the main crop grown, the Northern region in particular, ranks fifth in the country average maize production (three years average, 2013–2015) [2]. Agricultural production below production potential, especially for maize yields, is a common phenomenon in most African countries. The study aims to assess the impact of a fertilizer subsidy program on the private and social profitability of maize production in the more neglected area of the country
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