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Credit constraints and smallholder maize production in Ghana

Author

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  • Dadson Awunyo-Vitor
  • Ramatu M. Al-Hassan

Abstract

The study examined constraints influencing farmers' access to credit and the effect that credit has on maize productivity, using the endogenous switching regression approach with survey data collected from 595 maize farmers in the Ashanti and BrongAhafo Regions of Ghana. The study revealed that credit constraint has a dampening effect on input use and farm productivity. The results showed that engagement in off-farm income-generating activities, farm size and farmers' perception on operational modalities are factors that influence credit constraint conditions for farmers. In addition, the marginal productivity of credit differs between credit-constrained and credit-unconstrained farmers: thus, access to credit would enable credit-constrained farmers to take advantage of the available productive opportunities and increase maize productivity. Therefore, farmers in need of additional credit should be served to increase farm productivity.

Suggested Citation

  • Dadson Awunyo-Vitor & Ramatu M. Al-Hassan, 2014. "Credit constraints and smallholder maize production in Ghana," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 10(3), pages 239-256.
    • Handle: RePEc:ids:ijarge:v:10:y:2014:i:3:p:239-256
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    Citations

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    Cited by:

    1. Kotu, Bekele Hundie & Oyinbo, Oyakhilomen & Hoeschle-Zeledon, Irmgard & Nurudeen, Abdul Rahman & Kizito, Fred & Boyubie, Benedict, 2021. "Are Smallholder Farmers Interested in Practicing Sustainable Intensification? A Choice Experiment on Farmers’ Preferences for Sustainability Attributes of Maize Production in Ghana," 2021 Conference, August 17-31, 2021, Virtual 315032, International Association of Agricultural Economists.
    2. Kotu, Bekele Hundie & Oyinbo, Oyakhilomen & Hoeschle-Zeledon, Irmgard & Nurudeen, Abdul Rahman & Kizito, Fred & Boyubie, Benedict, 2022. "Smallholder farmers’ preferences for sustainable intensification attributes in maize production: Evidence from Ghana," World Development, Elsevier, vol. 152(C).
    3. Isaac Tweneboah Asante & Raymond K. Dziwornu & Dadson Awunyo-Vitor, 2020. "Hunger Project credit facility and maize productivity in Ghana," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 10(1), pages 239-258, June.

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