Characterizing Risk Behaviour of Maize Farmers using the Experimental Gambling Approach: An Empirical Study in Ghana

Along the maize value chain in Ghana are a wide range of risks that confront actors; the risk chain actors' face include production and marketing risks. Accordingly, risk management, which has become an integral part of maize value chain activities, is challenged with several factors, some of which are economic, institutional, social and behavioral factors. This study posits that risk preferences/behavior of farm decision-makers in the maize value chain have empirical importance for economic and policy analysis. Thus, an experimental gambling approach was used to elicit the risk aversion behavior of respondents (farmers). Here, the respondents' risk aversion behavior over varying game levels was investigated. The multinomial logit model was used to investigate endogenous and exogenous factors explaining the risk behavior. The data were obtained by interviewing 220 maize farmers who were sampled with a two-stage sampling procedure. This study revealed that most of the farmers in the study area exhibited risk aversion behavior. About 33% of farmers showed extreme risk aversion behavior at the games’ lowest level and increased to 45% as the game level rose. It was also found that sex, age, level of formal education, access to credit, access to the storage facility, household size, farm size and the number of extension visits to the farm significantly explained the risk aversion behavior the maize farmers exhibited. Because farmers are risk-averse and become more risk-averse as stakes become high, any farm innovations to be introduced to them must be implemented gradually, especially with the low-income farmers. It is also critical to make risk mitigation 'handles' available to farmers so that they can rely on them during times of risk

Economic valuation of consumers’ preferences for bush yam attributes: Implications for breeding commercial crop in Ghana

Bush yam has been underutilized and underrated for long due to its undesirable attributes or traits, hence the commercial and food security potentials of the crop have been downgraded and unexploited. This paper, therefore, explored the Ghanaian bush yam consumers’ decisionmaking behaviour towards the crop’s cultivar selection and the values they place on its diverse attributes. With the aim of examining consumers’ preference and willingness to pay for bush yam, we designed a choice experiment which was implemented through a cross-sectional survey, involving 390 bush yam consumers in the Western-North, Eastern and Central Cocoa Regions of Ghana. We employed Conditional logit to model consumers’ preference behaviour for bush yam attributes from the choice experiment and, subsequently, computed their willingness-to-pay for each attribute, following the Lancaster consumer theory, using the ratios of specific product attributes and cost parameter. Our estimates of consumers’ preferences for bush yam attribute revealed a highly significant preference for bigger tuber size, no colour change and sweet taste attributes. Age, education, marital status, and years of consumption were found to have influenced consumers’ preferences for bush yam attributes. Furthermore, we found that bush yam consumers are willing to pay extra price value for improvement in tuber size, colour change and taste to meet their indicated preferences. We, therefore, recommend that, for breeding programmes to be more effective and sustainable towards developing a commercial cultivar, breeding institutions and policy makers should focus on the preferred attributes as indicated by consumers for a successful future commercialization of bush yam in the countr

Heterogeneity in consumer preferences for organic and genetically modified food products in Ghana

Consumers are increasingly becoming very concerned about food safety, with many giving preference to organic food products over conventional food products, which make use of agrochemicals with potential implications for health. Furthermore, to make the food choice decisions even more complex, genetically modified (GM) foods have been introduced in an attempt to meet global food demand. Consumers therefore must make decisions regarding organic and GM foods. This paper investigates consumer heterogeneity for organic and GM tomatoes in Ghana using advanced discrete choice modelling techniques. The data for empirical application come from a choice experimental study conducted among 200 consumers in Ghana. Our econometric modelling revealed that the sampled consumers preferred organic tomatoes that are produced locally and certified by the Food and Drugs Authority. However, we find a likelihood that women and older consumers may have preferences for GM tomatoes with environmental and health benefits. Policy implications are drawn from the findings of the study

Promoting Improved Agricultural Technologies to Increase Smallholder Farm Production Efficiency: Ghanaian Study of Cassava Farmers

Our study provides empirical answer that verifies increase in productivity, if any, through promotion of improved agricultural technologies among smallholder food crop farmers in Africa. We specifically examined Root and Tuber Improvement and Marketing Programme (RTIMP) technology effect on improving the production efficiency of cassava farmers in Ghana. we stratified RTIMP cassava farmers into above average adopters and below average adopters based on their adoption intensity scores and further examined differences in their efficiency levels which we estimated by employing the stochastic frontier production model (SFA). In order to empirically establish if RTIMP technology has actually had effect in improving productivity of the cassava farmers, we estimated an adjusted regression model (average treatment effect and average treatment effect on the treated models). Our results show that the potential outcome mean technical efficiency of about 69% achieved by the above average RTIMP technology adopters is significantly higher than that of the below average technology adopters which was found to be about 64%. Our Average Treatment Effect on the Treated (ATET) estimates confirm that there has been significant increase in the technical efficiency of cassava farmers attributable to the adoption of the RTIMP cassava technology