Abstract
<p>This work examines the factors that influence whether or not a farmer applies inorganic fertilizer in the Ghanaian context. Current maize yields in Ghana average only one-third of their estimated potential, but this yield gap can be reduced by improving farming practices and growing conditions in Ghana; specifically, yields in Ghana can likely be increased by intensifying the use of inorganic fertilizer, other inputs, and irrigation systems. Recently, Ghana introduced a fertilizer subsidy program to help increase fertilizer-use rates. This paper examines alternate instruments for increasing fertilizer use by determining farm-holder characteristics correlated with inorganic fertilizer use. The results show that the farmer's distance from the closest weekly market, whether the farmer has a pre-harvest contract, and whether the farmer has property rights on the field have a significant effect on fertilizer use.</p>
Highlights
Soil quality in Sub-Saharan Africa (SSA) has long been deteriorating, and the soil in Ghana is no exception
Current maize yields in Ghana average only one-third of their estimated potential, but this yield gap can be reduced by improving farming practices and growing conditions in Ghana; yields in Ghana can likely be increased by intensifying the use of inorganic fertilizer, other inputs, and irrigation systems
The data are from the Ghana Agricultural Production Survey (GAPS), a project spearheaded by the Ministry of Food and Agriculture of Ghana (MoFA), with support from the Ghana Strategy Support Program (GSSP) of the International Food Policy Research Institute (IFPRI)
Summary
Soil quality in Sub-Saharan Africa (SSA) has long been deteriorating, and the soil in Ghana is no exception. Several African countries have recently begun fertilizer subsidy programs in an attempt to reduce the cost of fertilizer to farmers, including Burkina Faso, Ghana, Malawi, Nigeria, Rwanda, Senegal, Tanzania, and Zambia. Among these countries Ghana serves as an interesting example of a growing economy in which increases in agricultural yields could contribute significantly to economic development. The GDP of Ghana has more than quadrupled since 2004, from $8.9 billion to $40.7 billion, and while the share of the agricultural sector with respect to GDP has been decreasing, the sector remains a large part of the economy; as of 2010, the agricultural sector accounted for about 30% of GDP and employed 42% of the labor force (Food and Agriculture Organization of the United Nations [FAO], 2014). The aggregate value of agricultural production has been significantly increasing, from $5.4 billion in 2004 to $13.2 billion in 2011, despite this decreased share of GDP (FAO, 2014)
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