Vertical coordination mechanisms and farm performance amongst smallholder rice farmers in northern Ghana

Despite the fact that contracting facilitates farmer participation in agrifood value chains, evidence on farmers’ participation in different forms of contracts and the impact on farm performance is still limited. This study examines the determinants and impacts of vertical coordination mechanism‐spot market transactions, written, and verbal contract‐on‐farm performance of rice farmers in northern Ghana, using a multinomial BFG model to account for selectivity bias. The findings indicate that vertical coordination participation decision is significantly influenced by age, access to credit, labor, association membership, and sales to institutional buyers. The empirical results also reveal significant gains in farm performance outcomes from participating in written and verbal contracts, relative to spot market transactions

Coordination and Impact of Agrifood Value Chains on Farm Performance: Evidence from Smallholder Rice Farmers in Northern Ghana

The study examines the role of coordination mechanisms on the production and market performance among smallholder farmers in Ghana. First, it examines the impact of vertical coordination mechanisms-written contracts, verbal contracts and spot market transactions – on farm performance, using multinomial BFG model to account for selectivity bias. Second, the study employs an endogenous switching regression model to examine the impact of farmer groups and collective marketing on farm net revenues of smallholder rice farmers. Third, the study examines the impact of farmer groups on farm yields and technical efficiency of farmers. Finally, it explores the role of inclusive value chains and social networks on smallholder market performance, using a treatment effects model to account for selection bias. The results reveal that vertical coordination mechanisms increase farm performance, with the highest gains stemming from written contract use. Also, farmers who are members of farmer groups and participated in collective marketing obtained higher output prices, and also incurred lower input costs. Participants in farmer groups and collective marketing earned significantly higher farm net revenues than non-participants. Farmer groups also improve farm yields and technical efficiency. The study reveals that inclusive value chain participation increases paddy prices, quantity traded and net returns. Similarly, horizontal social networks members benefit from improved market performance. Also, inclusive value chain participation decisions and market performance are significantly influenced by social networks, distance to markets, mobile phone ownership and access to credit. These findings call for development policy measures to promote contractual engagement in smallholder output transactions, formation and development of farmer groups and encouraging collective marketing, as well as strengthen social networks for improved value chain competiveness and efficiency

Social networks, rice value chain participation and market performance of smallholder farmers in Ghana

This paper examines the impact of rice value chain participation and social networks on smallholder farmers' market performance outcomes (paddy price, quantity of paddy traded, and net returns), using data from a recent survey of 458 smallholder rice farmers in northern Ghana. We employed a treatment effects model to account for potential selection bias associated with observable and unobservable factors. The empirical results reveal that smallholder farmers' participation in a rice value chain is associated with increased paddy price, quantity traded, and net returns. We also find that value chain participation decisions and market performance are positively and significantly influenced by social networks. The empirical results also suggest that sex, farm size, mobile phone ownership, and access to credit significantly increase paddy prices, quantity traded, and net returns of smallholder rice farmers in the value chain

Can improved sorghum varieties enhance farm performance and household welfare? Evidence from Upper East Region of Ghana

This paper examines the role of improved sorghum variety adoption on smallholder farm performance and household welfare, measured by farm input expenditure, farm output, farm net returns, and household consumption expenditure per capita, using data from a household survey in Ghana's Upper East region. The study employed an endogenous treatment effects model, which addresses observable and unobservable selection biases associated with households' adoption decisions. The results reveal that improved sorghum variety adoption is significantly driven by government support, farm size, market distance, education, Farmer-Based Organization (FBO) membership, and household size. Moreover, gender, education, farm size, government support, FBO membership are the significant drivers of farm performance and household welfare among farm households. The results also show increased farm performance and better welfare associated with improved sorghum variety adoption. In particular, adopters incur 12.87% input expenditure, generate 6.95% farm output, 6.39% farm net returns, and 9.88% household consumption expenditure per capita, relative to non-adopters. Developing improved sorghum varieties and promoting uptake by farmers could enhance farm performance and improve rural livelihoods in Ghana

Sustainable land management practices, off-farm work participation and vulnerability among farmers in Ghana: Is there a nexus?

Addressing issues of agricultural sustainability and vulnerability to poverty under climate change are major challenges to development in the 21st century. Accounting for the trade-off and synergies between off-farm work participation and sustainable land management on one hand, and vulnerability to poverty on the other hand, will therefore be useful to policy. In this study, we use recent farm household data from Ghana to examine the effect of off-farm work participation on intensity of adoption of sustainable land management (SLM) practices and impact of off-farm work participation on vulnerability to poverty. We employed a bivariate Tobit model to examine the determinants of SLM adoption intensity, and endogenous switching probit model to assess the impact of off-farm work participation on vulnerability to poverty. The results reveal that participation in off-farm is positively and significantly associated with adoption intensity of bunds, and organic manure. The results also show that off-farm work participation significantly reduces household vulnerability to poverty by 13%. Based on these findings, we conclude that rural development through non-farm work opportunities can lead to positive synergies between sustainable agricultural production, off-farm employment and poverty alleviation. Keywords: Sustainable land management, Adoption intensity, Vulnerability, Bivariate Tobit, Endogenous switching probi

Organization and performance of chicken egg marketing in Northern Ghana

This study examined the organization and performance of chicken egg marketing in northern Ghana, relying on cross-sectional data from 180 randomly selected chicken egg marketers. Using descriptive statistics, Gini coefficient and gross margin analysis, the results revealed four chicken egg marketing channels, viz. Direct sales to consumers, itinerant wholesalers, sedentary wholesalers and retailers. The retailer marketing channel is the most patronized channel in the study area, followed by the wholesaler channel. The consumer marketing channel is the least patronized channel. A chicken egg marketer earns an average monthly gross margin and net return of GH₵807.40 and GH₵692.10, respectively. These findings suggest that the checking egg marketing in northern Ghana is lucrative. The Gini Coefficient of 55.87% implies moderate inequality among the marketers, and the market share is said to be oligopolistic