Profitability and Economic Feasibility Analysis of Small Scale Irrigation Technologies in northern Ghana

Abstract

Small-scale irrigation (SSI) technologies can be a useful tool not only to increase crop productivity and income but also to mitigate against climate variability in Ghana given the recent frequent dry spells. Profitability and economic feasibility of investing in the SSI technologies are analysed using a farm simulation model (FARMSIM) and based on farm-plot level data on selected SSI technologies piloted in northern Ghana under the Innovation Lab for Small Scale Irrigation (ILSSI). The aim is to identify profitable and economically feasible sets of ‘crop type–SSI technology’ combinations that would prove viable in “real world” farm conditions. Four dry season irrigated cash crop (corchorus, onion, and amaranths) grown under four SSI technologies (pump-tank-hose, watering can, and rain/roof water harvesting and drip irrigation) were considered. Results showed that rainwater-harvesting using poly tank storage and a drip system is not economically feasible at the current yield level and market prices of irrigated cash crops in northern Ghana. SSI technology options using river water or shallow wells with motorized pumps or watering cans were profitable. The watering can is relatively more profitable than motorized pumps because of fuel and upfront investment costs in pumps. However, affordable credit schemes could mitigate the cost constraint to afford motor pumps and enable smallholders to participate in market-oriented production.