Collective market action, farm performance, and household welfare among maize farmers: the role of outgrower scheme in Northern Ghana

Abstract

ABSTRACT Although outgrower scheme facilitates farmers’ collective action in agri-food value chain market participation, evidence of its impacts on farm performance and welfare is still limited. We examine the determinants and impact of outgrower scheme collective market participation on farm performance and household welfare in northern Ghana, using a multinomial endogenous switching regression (MESR) model to account for selectivity bias. The empirical findings show that participants in collective input and output markets as well as the joint markets outperform nonparticipants in terms of farm performance (commercialization and net farm income) and household expenditure, with the highest gains associated with joint market participation. We also observed that factors such as gender, age, extension service, credit, transaction cost, and awareness of outgrower scheme significantly influence farmers’ inclusion in group marketing. The findings suggest that policies that facilitate farmers’ access to agricultural inputs and output markets in collective action should be implemented through public–private partnerships to enhance farm performance and the livelihood of farmers.