The Impact of Cooperative Membership on Rural Households’ Farm Income: The Case of Aquaculture Farmers in the Eastern Region of Ghana

Abstract

Purpose: This study examined the effect of farmers’ involvement in aquaculture cooperatives on rural households’ farm income in the Eastern Region of Ghana. Approach/Methodology/Design: The data were gathered through questionnaires administered to four hundred (400) rural fish farming households. The endogenous switching regression (ESR) technique was used to resolve the self-bias of variables selection. For robustness of the results, Heckman selection model was later used to assess the treatment impact while accounting for endogeneity bias resulting from selection on unobservable variables. The heterogeneous analysis was performed to examine the impacts of cooperative involvement on rural fish farming households’ farm income. Findings: Based on the ESR outcomes, the study found that households’ credit access, extension services accessed by household heads, educational attainment by household heads, and household size significantly influence cooperative members’ farm income. However, farm (pond) size, household heads’ age, and households’ farming experience had no significant impact on cooperative members’ farm income. Using the problem confrontation index, the cooperative aquaculture farmers claimed that the deployment of primitive tools, high post-harvest losses, unavailability of improved feeds, high costs of chemicals, and low yield were the most severe obstructions in fish production. In contrast, the study established that the topmost pressing constraints confronting the non-cooperative member farmers were the inaccessibility to credit facilities, low productivity, high post-harvest losses, unavailability of improved feeds, and high costs of chemicals. Originality/value: This study highlighted that technical training, credit access, market outlets, bargaining power, input supplies, and increased prices of their products were the benefits the members derived from their involvement in aquaculture cooperatives in the study area.