IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v125y2020ics0305750x19303304.html
   My bibliography  Save this article

To diversify or not to diversify, that is the question. Pursuing agricultural development for smallholder farmers in marginal areas of Ghana

Author

Listed:
  • Bellon, Mauricio R.
  • Kotu, Bekele Hundie
  • Azzarri, Carlo
  • Caracciolo, Francesco

Abstract

Many smallholder farmers in developing countries grow multiple crop species on their farms, maintaining de facto crop diversity. Rarely do agricultural development strategies consider this crop diversity as an entry point for fostering agricultural innovation. This paper presents a case study, from an agricultural research-for-development project in northern Ghana, which examines the relationship between crop diversity and self-consumption of food crops, and cash income from crops sold by smallholder farmers in the target areas. By testing the presence and direction of these relationships, it is possible to assess whether smallholder farmers may benefit more from a diversification or a specialization agricultural development strategy for improving their livelihoods. Based on a household survey of 637 randomly selected households, we calculated crop diversity as well as its contribution to self-consumption (measured as imputed monetary value) and to cash income for each household. With these data we estimated a system of three simultaneous equations. Results show that households maintained high levels of crop diversity: up to eight crops grown, with an-average of 3.2 per household, and with less than 5% having a null or very low level of crop diversity. The value of crop species used for self-consumption was on average 55% higher than that of crop sales. Regression results show that crop diversity is positively associated with self-consumption of food crops, and cash income from crops sold. This finding suggests that increasing crop diversity opens market opportunities for households, while still contributing to self-consumption. Given these findings, crop diversification seems to be more beneficial to these farmers than specialization. For these diversified farmers, or others in similar contexts, interventions that assess and build on their de facto crop diversity are probably more likely to be successful.

Suggested Citation

  • Bellon, Mauricio R. & Kotu, Bekele Hundie & Azzarri, Carlo & Caracciolo, Francesco, 2020. "To diversify or not to diversify, that is the question. Pursuing agricultural development for smallholder farmers in marginal areas of Ghana," World Development, Elsevier, vol. 125(C).
    • Handle: RePEc:eee:wdevel:v:125:y:2020:i:c:s0305750x19303304
    DOI: 10.1016/j.worlddev.2019.104682
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X19303304
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2019.104682?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kalle Hirvonen & John Hoddinott, 2017. "Agricultural production and children's diets: evidence from rural Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(4), pages 469-480, July.
    2. Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
    3. Rahman, Sanzidur, 2009. "Whether crop diversification is a desired strategy for agricultural growth in Bangladesh?," Food Policy, Elsevier, vol. 34(4), pages 340-349, August.
    4. Devaux, André & Horton, Douglas & Velasco, Claudio & Thiele, Graham & López, Gastón & Bernet, Thomas & Reinoso, Iván & Ordinola, Miguel, 2009. "Collective action for market chain innovation in the Andes," Food Policy, Elsevier, vol. 34(1), pages 31-38, February.
    5. Ecker, Olivier, 2018. "Agricultural transformation and food and nutrition security in Ghana: Does farm production diversity (still) matter for household dietary diversity?," Food Policy, Elsevier, vol. 79(C), pages 271-282.
    6. Andrew Dillon & Kevin McGee & Gbemisola Oseni, 2015. "Agricultural Production, Dietary Diversity and Climate Variability," Journal of Development Studies, Taylor & Francis Journals, vol. 51(8), pages 976-995, August.
    7. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, April.
    8. Amanda King, 2007. "Trade and Totomoxtle: Livelihood strategies in the Totonacan region of Veracruz, Mexico," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 24(1), pages 29-40, March.
    9. Jayne, T.S. & Mather, David & Mghenyi, Elliot, 2010. "Principal Challenges Confronting Smallholder Agriculture in Sub-Saharan Africa," World Development, Elsevier, vol. 38(10), pages 1384-1398, October.
    10. C. Peter Timmer, 1997. "Farmers and Markets: The Political Economy of New Paradigms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 621-627.
    11. Di Falco, Salvatore & Perrings, Charles, 2005. "Crop biodiversity, risk management and the implications of agricultural assistance," Ecological Economics, Elsevier, vol. 55(4), pages 459-466, December.
    12. Salvatore Di Falco & Marcella Veronesi, 2013. "How Can African Agriculture Adapt to Climate Change? A Counterfactual Analysis from Ethiopia," Land Economics, University of Wisconsin Press, vol. 89(4), pages 743-766.
    13. Nin-Pratt, Alejandro & McBride, Linden, 2014. "Agricultural intensification in Ghana: Evaluating the optimist’s case for a Green Revolution," Food Policy, Elsevier, vol. 48(C), pages 153-167.
    14. M. Shahe Emran & Forhad Shilpi, 2012. "The extent of the market and stages of agricultural specialization," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 1125-1153, August.
    15. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    16. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    17. Dillon, Brian & Barrett, Christopher B., 2017. "Agricultural factor markets in Sub-Saharan Africa: An updated view with formal tests for market failure," Food Policy, Elsevier, vol. 67(C), pages 64-77.
    18. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    19. Van Dusen, M. Eric & Taylor, J. Edward, 2005. "Missing markets and crop diversity: evidence from Mexico," Environment and Development Economics, Cambridge University Press, vol. 10(4), pages 513-531, August.
    20. Nguyen, Huy Quynh, 2017. "Analyzing the economies of crop diversification in rural Vietnam using an input distance function," Agricultural Systems, Elsevier, vol. 153(C), pages 148-156.
    21. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    22. Mintewab Bezabih & Mare Sarr, 2012. "Risk Preferences and Environmental Uncertainty: Implications for Crop Diversification Decisions in Ethiopia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 483-505, December.
    23. de Janvry, Alain & Fafchamps, M. & Sadoulet, Elisabeth, 1991. "Peasant Household Behavior with Missing Markets: Some Paradoxes Explain," CUDARE Working Papers 198579, University of California, Berkeley, Department of Agricultural and Resource Economics.
    24. Chamberlin, Jordan & Jayne, T.S., 2013. "Unpacking the Meaning of ‘Market Access’: Evidence from Rural Kenya," World Development, Elsevier, vol. 41(C), pages 245-264.
    25. Arne Bigsten & Sven Tengstam, 2011. "Smallholder Diversification and Income Growth in Zambia," Journal of African Economies, Centre for the Study of African Economies, vol. 20(5), pages 781-822, November.
    26. Michler, Jeffrey D. & Josephson, Anna L., 2017. "To Specialize or Diversify: Agricultural Diversity and Poverty Dynamics in Ethiopia," World Development, Elsevier, vol. 89(C), pages 214-226.
    27. Jones, Andrew D. & Shrinivas, Aditya & Bezner-Kerr, Rachel, 2014. "Farm production diversity is associated with greater household dietary diversity in Malawi: Findings from nationally representative data," Food Policy, Elsevier, vol. 46(C), pages 1-12.
    28. Carletto, Calogero & Corral, Paul & Guelfi, Anita, 2017. "Agricultural commercialization and nutrition revisited: Empirical evidence from three African countries," Food Policy, Elsevier, vol. 67(C), pages 106-118.
    29. Benin, S. & Smale, M. & Pender, J. & Gebremedhin, B. & Ehui, S., 2004. "The economic determinants of cereal crop diversity on farms in the Ethiopian highlands," Agricultural Economics, Blackwell, vol. 31(2-3), pages 197-208, December.
    30. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
    31. Asfaw, Solomon & Scognamillo, Antonio & Caprera, Gloria Di & Sitko, Nicholas & Ignaciuk, Adriana, 2019. "Heterogeneous impact of livelihood diversification on household welfare: Cross-country evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 117(C), pages 278-295.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lovo, Stefania & Veronesi, Marcella, 2019. "Crop Diversification and Child Health: Empirical Evidence From Tanzania," Ecological Economics, Elsevier, vol. 158(C), pages 168-179.
    2. Tesfaye, Wondimagegn, 2022. "Crop diversification and child malnutrition in rural Ethiopia: Impacts and Pathways," Food Policy, Elsevier, vol. 113(C).
    3. Getahun, Tigabu & Fetene, Gebeyehu, 2021. "The Nexus of Production Diversity, Market Participation and Dietary Diversity: Insights from Ethiopia," Discussion Papers 316382, University of Bonn, Center for Development Research (ZEF).
    4. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2020. "Crop diversity, household welfare and consumption smoothing under risk: Evidence from rural Uganda," World Development, Elsevier, vol. 125(C).
    5. Jude I. Iziga & Shingo Takagi, 2022. "Food Consumption–Production Adjustments to Economic Crises under Credit Constraints in Nigeria," Sustainability, MDPI, vol. 14(14), pages 1-25, July.
    6. Mauricio R. Bellon & Gervais Ntandou-Bouzitou & Janet E. Lauderdale & Francesco Caracciolo, 2023. "Combining market and nonmarket food sources provides rural households with more options to achieve better diets in Southern Benin," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(2), pages 411-422, April.
    7. Theriault, Veronique & Smale, Melinda, 2021. "The unintended consequences of the fertilizer subsidy program on crop species diversity in Mali," Food Policy, Elsevier, vol. 102(C).
    8. Proscovia Renzaho Ntakyo & Marrit Berg, 2019. "Effect of market production on rural household food consumption: evidence from Uganda," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(5), pages 1051-1070, October.
    9. Embaye, Weldensie T. & Bergtold, Jason S. & Schwab, Benjamin & Zereyesus, Yacob A., 2018. "Modeling Farm Household’s Productivity under Inseparable Production and Consumption decisions," 2018 Annual Meeting, August 5-7, Washington, D.C. 274226, Agricultural and Applied Economics Association.
    10. Muthini, Davis & Nzuma, Jonathan & Qaim, Matin, 2018. "Subsistence Production, Markets, and Dietary Diversity in the Kenyan Small Farm Sector," Department of Agricultural and Rural Development (DARE) Discussion Papers 279791, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    11. Thomas Lemma Argaw & Euan Phimister & Deborah Roberts, 2021. "From Farm to Kitchen: How Gender Affects Production Diversity and the Dietary Intake of Farm Households in Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 268-292, February.
    12. Abedin, Naveen & Haque, Samiul, 2021. "Effectiveness of agricultural diversification in promoting food security," 2021 Annual Meeting, August 1-3, Austin, Texas 313967, Agricultural and Applied Economics Association.
    13. Clifton Makate & Marshall Makate, 2022. "Do Rainfall Shocks Prompt Commercial Input Purchases Amongst Smallholder Farmers in Diverse Regions and Environments in Malawi?," Sustainability, MDPI, vol. 14(22), pages 1-31, November.
    14. Michler, Jeffrey D. & Josephson, Anna L., 2017. "To Specialize or Diversify: Agricultural Diversity and Poverty Dynamics in Ethiopia," World Development, Elsevier, vol. 89(C), pages 214-226.
    15. Digvijay S. Negi & Pratap S. Birthal & Devesh Roy & Jaweriah Hazrana, 2020. "Market access, price policy and diversification in Indian agriculture," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2020-009, Indira Gandhi Institute of Development Research, Mumbai, India.
    16. Muthini, Davis & Nzuma, Jonathan & Qaim, Matin, 2020. "Subsistence production, markets, and dietary diversity in the Kenyan small farm sector," Food Policy, Elsevier, vol. 97(C).
    17. Kotchikpa Gabriel Lawin & Lota Tamini, 2019. "Determinants of Crop Diversification in Burkina Faso - What is the Impact of Risk Preference?," CIRANO Working Papers 2019s-07, CIRANO.
    18. Josephson, Anna Leigh & Michler, Jeffrey D., 2015. "To Specialize or Diversify: Agricultural Diversity and Poverty Persistence in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 212459, International Association of Agricultural Economists.
    19. Wondimagegn Tesfaye & Garrick Blalock & Nyasha Tirivayi, 2021. "Climate‐Smart Innovations and Rural Poverty in Ethiopia: Exploring Impacts and Pathways," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 878-899, May.
    20. Kadjo, Didier & Ricker-Gilbert, Jacob & Tahirou, Abdoulaye & Shively, Gerald & Baco, Nasser, 2016. "Adverse selection in informal maize markets in Benin," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249289, African Association of Agricultural Economists (AAAE).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:125:y:2020:i:c:s0305750x19303304. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.