Factors Influencing Participation of Crop Farming Households in Non-farm Activities in Ghana

Agricultural sector is facing serious challenges (low productivity, inadequate investment, changes in climatic conditions etc) in developing countries. The challenges facing Ghanaian agriculture had led to the increasing participation of farmers in the non-farm activities. It is therefore incumbent on researchers to investigate factors that can be modified for farmers to fully participate in non-farm agriculture activities to complement their livelihoods. This study investigated factors that influenced farming households’ decision to participate in non-farm activities using data from fifth version of Ghana Living Standard Survey. The sample size used for the study is 1368. A binary logit estimation model was used for the analysis. The results obtained from maximum likelihood estimation showed that households with greater probability to participate in non-farm activities were as follows: female-headed households; households headed by the young; households whose heads were married, households whose heads had formal education, larger households, households living in urban areas and households living in the forest zone. Crop farming households who are male-headed, had no formal education, had small household sizes, lived in rural areas and in savannah areas should be encouraged and supported to diversify activities by engaging in non-farm activities.