IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i18p11548-d915362.html
   My bibliography  Save this article

Economic Viability of Smallholder Agriculture in the Savannah and Transitional Zones of Ghana: Implications of Farm Output Commercialization and Farm Diversification

Author

Listed:
  • William Adzawla

    (International Fertilizer Development Center (IFDC), Muscle Shoals, AL 35662, USA)

  • Prem S. Bindraban

    (International Fertilizer Development Center (IFDC), Muscle Shoals, AL 35662, USA)

  • Williams K. Atakora

    (International Fertilizer Development Center (IFDC), Muscle Shoals, AL 35662, USA)

  • Oumou Camara

    (International Fertilizer Development Center (IFDC), Muscle Shoals, AL 35662, USA)

  • Amadou Gouzaye

    (OCP Africa, Casablanca 20200, Morocco)

Abstract

Smallholder agriculture remains the heart of Ghana’s food crop production and crucial to meet the zero-hunger target. Unfortunately, rural households continue to see no significant improvement in their livelihoods, as poverty and food insecurity remain high in these areas. This has raised concerns about the economic viability of smallholder agriculture in Ghana. We estimated propensity score matching on a sample of 581 farmers to determine the economic viability of the smallholder farmers and the impact of farm output commercialization and off-farm diversification on their food security and welfare status. Large-scale (>2 ha) maize production led to 8% more yield and 96% more income than small-scale (≤2 ha) production. At observed mean levels, large-scale farmers performed better in most of the livelihood outcomes. The impact of diversification and commercialization on livelihood outcomes was mixed, based on the scale of production. For small-scale farmers, diversification reduced per capita consumption expenditure, while commercialization improved food security, consumption expenditure, and income. For large-scale farmers, diversification improved yield and food security, while commercialization improved fertilizer application rate and income but reduced yield. Although small-scale farmers are not necessarily doomed, the heterogeneity of farmers’ production scale should be considered in the design of rural agricultural policies.

Suggested Citation

  • William Adzawla & Prem S. Bindraban & Williams K. Atakora & Oumou Camara & Amadou Gouzaye, 2022. "Economic Viability of Smallholder Agriculture in the Savannah and Transitional Zones of Ghana: Implications of Farm Output Commercialization and Farm Diversification," Sustainability, MDPI, vol. 14(18), pages 1-22, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:18:p:11548-:d:915362
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/18/11548/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/18/11548/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Justus, Ochieng & Knerr, Beatrice & Owuor, George & Ouma, Emily, 2015. "Agricultural commercialization and household food security: The case of smallholders in Great Lakes Region of Central Africa," 2015 Conference, August 9-14, 2015, Milan, Italy 212588, International Association of Agricultural Economists.
    2. Ken E. Giller & Thomas Delaune & João Vasco Silva & Mark Wijk & James Hammond & Katrien Descheemaeker & Gerrie Ven & Antonius G. T. Schut & Godfrey Taulya & Regis Chikowo & Jens A. Andersson, 2021. "Small farms and development in sub-Saharan Africa: Farming for food, for income or for lack of better options?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1431-1454, December.
    3. 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.
    4. Zanello, Giacomo & Shankar, Bhavani & Poole, Nigel, 2019. "Buy or make? Agricultural production diversity, markets and dietary diversity in Afghanistan," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    5. Wanglin Ma & Awudu Abdulai & Chunbo Ma, 2018. "The effects of off†farm work on fertilizer and pesticide expenditures in China," Review of Development Economics, Wiley Blackwell, vol. 22(2), pages 573-591, May.
    6. Kilian Nasung Atuoye & Roger Antabe & Yujiro Sano & Isaac Luginaah & Jason Bayne, 2019. "Household Income Diversification and Food Insecurity in the Upper West Region of Ghana," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 899-920, July.
    7. Phouvong Phami & Jianhua He & Dianfeng Liu & Su Ding & Patrik Silva & Chun Li & Zhijiao Qin, 2020. "Exploring the Determinants of Food Security in the Areas of the Nam Theun2 Hydropower Project in Khammuan, Laos," Sustainability, MDPI, vol. 12(2), pages 1-14, January.
    8. Sergio Gomez y Paloma & Laura Riesgo & Kamel Elouhichi Louhichi, 2020. "The Role of Smallholder Farms in Food and Nutrition Security [Le rôle des petites exploitations agricoles dans la sécurité alimentaire et nutritionnelle]," Post-Print hal-02611174, HAL.
    9. Sergio Gomez y Paloma & Laura Riesgo & Kamel Louhichi (ed.), 2020. "The Role of Smallholder Farms in Food and Nutrition Security," Springer Books, Springer, number 978-3-030-42148-9, September.
    10. Baslyd B. Nara & Monica Lengoiboni & Jaap Zevenbergen, 2020. "Implications of Customary Land Rights Inequalities for Food Security: A Study of Smallholder Farmers in Northwest Ghana," Land, MDPI, vol. 9(6), pages 1-20, June.
    11. Dalila Cervantes-Godoy & Joe Dewbre, 2010. "Economic Importance of Agriculture for Poverty Reduction," OECD Food, Agriculture and Fisheries Papers 23, OECD Publishing.
    12. 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.
    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. Nouman Afzal & Stavros Afionis & Lindsay C. Stringer & Nicola Favretto & Marco Sakai & Paola Sakai, 2021. "Benefits and Trade-Offs of Smallholder Sweet Potato Cultivation as a Pathway toward Achieving the Sustainable Development Goals," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    2. Olabisi, Michael & Obekpa, Hephzibah Onyeje & Liverpool-Tasie, Lenis Saweda O., 2021. "Is growing your own food necessary for dietary diversity? Evidence from Nigeria," Food Policy, Elsevier, vol. 104(C).
    3. Silvia Saravia-Matus & T. S. Amjath-Babu & Sreejith Aravindakshan & Stefan Sieber & Jimmy A. Saravia & Sergio Gomez y Paloma, 2021. "Can Enhancing Efficiency Promote the Economic Viability of Smallholder Farmers? A Case of Sierra Leone," Sustainability, MDPI, vol. 13(8), pages 1-17, April.
    4. Anette Ruml & Martin C. Parlasca, 2022. "In‐kind credit provision through contract farming and formal credit markets," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 402-425, April.
    5. Matthys, Marie-Luise & Acharya, Sushant & Khatri, Sanjaya, 2021. "“Before cardamom, we used to face hardship”: Analyzing agricultural commercialization effects in Nepal through a local concept of the Good Life," World Development, Elsevier, vol. 141(C).
    6. Matita, Mirriam & Chiwaula, Levison & Wadonda Chirwa, Ephraim & Mazalale, Jacob & Walls, Helen, 2022. "Subsidizing improved legume seeds for increased household dietary diversity: Evidence from Malawi’s Farm Input Subsidy Programme with implications for addressing malnutrition in all its forms," Food Policy, Elsevier, vol. 113(C).
    7. Aragie, E. & Balié, J. & Morales, C. & Pauw, K., 2023. "Synergies and trade-offs between agricultural export promotion and food security: Evidence from African economies," World Development, Elsevier, vol. 172(C).
    8. Raymond Mugandani & Liboster Mwadzingeni & Paramu Mafongoya, 2021. "Contribution of Conservation Agriculture to Soil Security," Sustainability, MDPI, vol. 13(17), pages 1-11, September.
    9. Nawab Khan & Ram L. Ray & Hazem S. Kassem & Farhat Ullah Khan & Muhammad Ihtisham & Shemei Zhang, 2022. "Does the Adoption of Mobile Internet Technology Promote Wheat Productivity? Evidence from Rural Farmers," Sustainability, MDPI, vol. 14(13), pages 1-15, June.
    10. Theresa Tendai Rubhara & Maxwell Mudhara & Oluwaseun Samuel Oduniyi & Michael Akwasi Antwi, 2020. "Impacts of Cash Crop Production on Household Food Security for Smallholder Farmers: A Case of Shamva District, Zimbabwe," Agriculture, MDPI, vol. 10(5), pages 1-11, May.
    11. Isaac Bonuedi & Lukas Kornher & Nicolas Gerber, 2022. "Agricultural seasonality, market access, and food security in Sierra Leone," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(2), pages 471-494, April.
    12. Sicelo Ignatius Dlamini & Wen-Chi Huang, 2019. "A Double Hurdle Estimation of Sales Decisions by Smallholder Beef Cattle Farmers in Eswatini," Sustainability, MDPI, vol. 11(19), pages 1-27, September.
    13. Sarah Ephrida Tione, 2020. "Agricultural Resources and Trade Strategies: Response to Falling Land-to-Labor Ratios in Malawi," Land, MDPI, vol. 9(12), pages 1-32, December.
    14. Shaeden Gokool & Maqsooda Mahomed & Richard Kunz & Alistair Clulow & Mbulisi Sibanda & Vivek Naiken & Kershani Chetty & Tafadzwanashe Mabhaudhi, 2023. "Crop Monitoring in Smallholder Farms Using Unmanned Aerial Vehicles to Facilitate Precision Agriculture Practices: A Scoping Review and Bibliometric Analysis," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    15. Simphiwe Innocentia Hlatshwayo & Mjabuliseni Ngidi & Temitope Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow, 2021. "A Typology of the Level of Market Participation among Smallholder Farmers in South Africa: Limpopo and Mpumalanga Provinces," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
    16. Thalía Turrén-Cruz & Miguel Ángel López Zavala, 2021. "Framework Proposal for Achieving Smart and Sustainable Societies (S 3 )," Sustainability, MDPI, vol. 13(23), pages 1-14, November.
    17. Abraham, Mathew & Verteramo Chiu, Leslie & Joshi, Ekta & Ali Ilahi, Muhammad & Pingali, Prabhu, 2022. "Aggregation models and small farm commercialization – A scoping review of the global literature," Food Policy, Elsevier, vol. 110(C).
    18. Yonas T. Bahta & Vuyiseka A. Myeki, 2022. "The Impact of Agricultural Drought on Smallholder Livestock Farmers: Empirical Evidence Insights from Northern Cape, South Africa," Agriculture, MDPI, vol. 12(4), pages 1-24, March.
    19. Davis Muthini & Jonathan Nzuma & Rose Nyikal, 2020. "Farm production diversity and its association with dietary diversity in Kenya," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(5), pages 1107-1120, October.
    20. Gazali Issahaku & Lukas Kornher & Abu Hayat Md. Saiful Islam & Awal Abdul-Rahaman, 2023. "Heterogeneous impacts of home-gardening on household food and nutrition security in Rwanda," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(3), pages 731-750, June.

    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:gam:jsusta:v:14:y:2022:i:18:p:11548-:d:915362. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.