Abstract
This study investigated farmer characteristics, private assets, public assets and transaction cost variables influencing the probability and intensity of participating in the market by smallholder maize farmers in the Upper West Region of Ghana. The Household Commercialisation Index was used to estimate the level of market participation and the Double Hurdle Model was used to estimate the factors influencing both market participation and intensity of participation. The results indicated that about twenty-four percent of maize is sold in the region within a production year which implies low commercialisation index. Specific farmer characteristics, private assets, public assets and transaction cost variables significantly influenced the probability and intensity of market participation behaviour in the region. The study concludes that maize is produced as a staple for household consumption. The study recommends that government through the Ministry of Food and Agriculture should institute productivity enhancing measures to increase the productivity of maize as well as establish rural finance schemes to address the credit needs of smallholders. Key words: Household commercialisation index, double hurdle model, market participation, maize, smallholder farmers, upper west region, Ghana.
Highlights
Introduction57.6% of the total agriculture land area
The semi-structured questionnaire was designed to collect a range of data on amounts of maize production and the proportion sold, household characteristics such as age, gender, marital status, farm experience of the household head, household size, etc.; private assets variables such as farm size, off-farm income, ownership of a mobile phone, etc.; public assets variables such as access to credit, extension contact, etc.; transaction cost variables such as access to market information, point of sale of output, etc
The analysis carried out showed that about twenty-four percent of maize output is sold by maize farm households in the Upper West region
Summary
57.6% of the total agriculture land area. Agriculture is dominated by smallholder farmers who are predominantly rural dwellers, with about 90% of farm holdings less than 2 ha in size. The implication of this dominance of smallholders is that no meaningful policy to enhance the development of the agricultural sector can overlook these farmers. MoFA, 2007 and the World Bank, 2007) have emphasised the reorientation of policies towards access to markets by smallholder farmers as a means of improving their livelihoods and development. The Government of Ghana recognised that strategies to improve agricultural performance should include investments that improve and enhance market access
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