Application of Multinomial Logistic to Smallholder Farmers’ Market Participation in Northern Ghana

Abstract

The contribution of agriculture to the development of a country cannot be over emphasized, likewise the role played by smallholder farmers in the production of food in developing countries such as Ghana. Hence, the research examined the factors that affect market participation of smallholder farmers in Ghana. The Ghana Living Standard Survey data as published by the Ghana Statistical Service was employed and analyzed with the application of multinomial logistic regression model. Analysis of the data in the Northern part of Ghana indicate a very low market participation relative to the national average figure of 36% which itself is considered to be low at the international level. The results further show that, out of the total food crops produced (cereals), maize takes the highest whilst millet is the lowest cereal produced in Ghana. The results also revealed that only 24.2% of the total output of cereals produced in the study area is sold. The multinomial logistic results show that being a female farmer, having access to credit, increase in farm size and household size were factors that discourage subsistence farming and encourage market-oriented farming. The study recommends the promotion of small scale farmer participation in marketing of their produce through improving access to credit, land reallocation and promotion of female farmers' commercial participation.

Adoption of ICT-Based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa

“…where MKTPAT i is a categorical variable that takes the value of 1 if a smallholder livestock farmer participates in the market, and 0 if otherwise. According to [34], a probit model of MKTPAT i which follows random utility is expressed as:…”

Adoption of ICT-based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa

“…The literature provides varied analytical methods for determining cause-effect relationships, with views indicating a heavy dependence on the two step selectivity models for discrete and continuous decisions reported by [23]. A two-stage econometric method outlined in [24] is based on the ordered Probit and Tobit models, and current methods for analysing the effect of identified variables on market participation have been incorporated using the truncated, binary and multinomial regression models [25][26][27][28].…”

Factors affecting multiple climate change adaptation practices of smallholder farmers in lower Eastern Kenya

“…The credit facilities might encourage farmer participation in cooperative action or additional investments related to agricultural production. The result relates with Asante-Addo et al 2017 andMustapha, Mohammed, andAbukari (2017), who noticed that, a farmer's purchasing power enables use of improved seeds hence positively impacting degree of market participation. The finding, however, contradicts studies by Ojo, Baiyegunhi, and Salami, (2019) and Wongnaa, Awunyo-Vitor, and Bakang (2018), who illustrated that inadequate access to farm credit impedes the adoption of improved technologies by farmers.…”