Response of rice yields in Ghana: some prescriptions for future rice policy

With local rice production lagging well behind demand as a result of low productivity of farmers’ fields, this study analyzed the response of rice yields in Ghana to major internal and external factors which have direct and indirect effects on production and to producers. Yield of rice was found to increase with producer price of rice, irrigated area, labor availability and world price of rice to producer price of rice ratio. It however decreases with increases in harvested area and price of urea fertilizer due to fertility issues, producer price of maize due to influences from resource allocation, and with nominal rate of assistance due to secondary distortions on input prices. To increase and sustain rice yields, future rice policy measures should couple area expansion with vital intensification measures to help mitigate the adverse impact from sole expansion of area and should as well ensure appropriate transmission of prices with least distortion. Investment should be made towards the initiation and diffusion of low cost water control and irrigation systems across the country and vital measures be devised to reduce labor shortages. In improving the fertility of farmers’ fields, the current fertilizer subsidy structure should be improved upon and measures put in place to improve farmers access to credit as this is a vital issue that needs addressing to ensure appropriate response of farmers to future price and non-price incentives