Nonfarm activity and market participation by farmers in Ghana

Nkegbe, Paul Kwame; Araar, Abdelkrim; Abu, Benjamin Musah; Alhassan, Hamdiyah; Ustarz, Yazidu; Setsoafia, Edinam Dope; Abdul-Wahab, Shamsia

doi:10.1186/s40100-022-00210-1

Cited by 8 publications

(12 citation statements)

References 35 publications

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“…The effect of non-farm engagement on agricultural commercialization therefore depends upon whether network creation and increased liquidity outweigh the time and labor lost to production. However, this study takes the side of the liquidity-relaxing hypothesis over the lost labor hypothesis in the Ghanaian context following empirical evidence from Nkegbe et al (2022), Okoh and Hilson (2011), Hilson (2010), and Hilson and Garforth (2013). These studies have demonstrated that participation of farmers in non-farm activities ultimately boosts agricultural activities through investments from non-farm incomes.…”

Section: Non-farm and Commercialization Linkagesmentioning

confidence: 99%

“…For example, farmers who engaged in small scale mining activities invested the incomes in purchasing agricultural productivity enhancing inputs. Further, Nkegbe et al (2022) argue that farmers' engagement in non-farm activities is considered as a derived demand where such engagements are meant to overcome liquidity constraints in agricultural production. Therefore, this study expects a positive effect of non-farm engagement on agricultural commercialization.…”

Section: Non-farm and Commercialization Linkagesmentioning

confidence: 99%

“…However, this study takes the side of the liquidity-relaxing hypothesis over the lost labor hypothesis in the Ghanaian context following empirical evidence from Nkegbe et al . (2022), Okoh and Hilson (2011), Hilson (2010), and Hilson and Garforth (2013).…”

Section: Non-farm and Commercialization Linkagesmentioning

confidence: 99%

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Rural non-farm engagement and agriculture commercialization in Ghana

Nkegbe

Araar

Abu

et al. 2023

JADEE

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PurposeGhana's economy is largely agrarian, and the business of agriculture is dominated by smallholder farmers who are predominantly rural dwellers. As a result, efforts to lift rural farming households from poverty have been narrowed to the promotion of agricultural development to the neglect of the rural non-farm sector. However, this is fast changing in the advent of a burgeoning rural nonfarm economy and must engage the attention of policy actors. This study thus assesses the effect of non-farm participation on households' level of commercialization of agricultural crops in Ghana.Design/methodology/approachThe study applies a generalized structural equation model (GSEM) to the Ghana Living Standards Survey round 6 dataset, a stratified and nationally representative random sample of 16,772 households in 1,200 enumeration areas.FindingsThis study finds that non-farm participation increases the produce sold to output ratio. It is concluded that non-farm engagement by farmers boosts commercialization in Ghana. Thus, for the Ghanaian and similar contexts, agricultural development interventions that incorporate non-farm activities are more likely to be successful in improving livelihoods.Research limitations/implicationsThe study uses only the ratio of sales value to output value definition for commercialization and acknowledges use of multiple definitions could be superior.Originality/valueVarious empirical studies have examined the link between the farm and nonfarm sectors. This paper is original in its approach as it tackles an aspect of the subject that has been understudied, namely, an exploration of nonfarm and farm linkages from the perspective of agricultural commercialization.

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Section: Non-farm and Commercialization Linkagesmentioning

confidence: 99%

Section: Non-farm and Commercialization Linkagesmentioning

confidence: 99%

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Rural non-farm engagement and agriculture commercialization in Ghana

Nkegbe

Araar

Abu

et al. 2023

JADEE

Self Cite

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“…Households decide themselves (self‐selection), whether to adopt the ICTs, depending on their welfare and other socioeconomic and technological factors, which leads to the potential endogeneity issue of the ICT adoption variable in an econometric estimation. When analyzing the impact of a binary endogenous treatment variable (i.e., ICT adoption) on a binary outcome variable (i.e., access to credit), previous studies have suggested different approaches, such as the PSM method (Minah, 2022; Shimada & Sonobe, 2021), endogenous switching probit (ESP) model (Lokshin & Sajaia, 2011; Nkegbe et al, 2022), and RBP model (Addai, Temoso, & Ng'ombe, 2022; Li, Cheng, & Shi, 2021). Among them, the PSM method fails to correct for endogeneity issues originating from unobserved factors (e.g., an individual's innate ability and motivation), while the ESP model cannot estimate a direct effect of ICT adoption on access to credit.…”

Section: Econometric Modelsmentioning

confidence: 99%

Rural development in the digital age: Does information and communication technology adoption contribute to credit access and income growth in rural China?

Qiu

Rahut

2022

Review Development Economics

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Information and communication technology (ICT) plays an important role in rural livelihoods and household well-being. Therefore, this study examines the impact of ICT adoption on farmers' decisions to access credit and the joint effects of ICT adoption and access to credit on household income using 2016 China Labour-force Dynamics Survey data. Both recursive bivariate probit model and a selectivity-corrected ordinary least square regression model are employed for the analysis. The results show that ICT adoption increases the probability of access to credit by 12.8% in rural China and empowers rural women and farm households in relatively less-developed regions to access credit. ICT adoption and access to credit affect household income differently. ICT adoption significantly increases household income, while access to credit significantly reduces it, primarily because farmers do not use the acquired credit to invest in income-generating farm and off-farm business activities. ICT adoption has the largest positive impact on household income at the highest 90th quantile. Our findings suggest that improving rural ICT infrastructure to enhance farmers' ICT adoption and developing

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“…Kiros and Meshesha (2022) stated that variables identified to influence participation in credit schemes and access to credit are the age of the farmer, level of education, gender, and involvement in other non-farm activities. Nkegbe et al . (2022) also revealed that family size, farm output value, availability of credit facilities in the community and the distance between lending agencies and the farmers were the significant drivers for accessing credits.…”

Section: Literature Reviewmentioning

confidence: 99%

Input credit scheme, farm productivity and food security nexus among smallholder rice farmers: evidence from North East Ghana

Wongnaa,

Abudu,

Abdul-Rahaman

et al. 2023

AFR

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PurposeThis study examined the impact of the Input Credit Scheme (ICS) by the Integrated Water Management and Agriculture Development (IWAD) on the productivity and food security of smallholder rice farmers in Ghana.Design/methodology/approachCross-sectional data from 250 rice farming households in the Mamprugu Moagduri district of the North East Region obtained from a multi-stage sampling technique were used for the study. Inverse Probability Weighted Regression Adjustment (IPWRA), Propensity Score Matching (PSM) and Kendall's coefficient of concordance were the methods of analysis employed.FindingsEmpirical results show that education, rice farming experience, dependency ratio, FBO membership, farm size and farm age were the significant factors influencing participation in the input credit scheme (ICS). Also, participants had an average rice productivity of 1,476.83 kg/ha, whereas non-participants had 1,131.81 kg/ha implying that participants increased their productivity by about 30%. In addition, the study revealed that participant households increased their household dietary diversity (HDDS) by 0.45 points amounting to about 8% diversity in their diets. High-interest rates associated with credit received, the short periods of credit repayment and the high cost of inputs provided under the scheme were the most challenging constraints associated with partaking in the ICS.Practical implicationsThe available literature on agricultural interventions have predominantly emphasized input credit as a key factor for improving cropt productivity and food security of smallholders. This study provides compelling evidence that participation in ICSs can result in substantial benefits for agricultural development, as evidenced by increased productivity leading to improved food security. The significance of these findings is highlighted by the fact that, through participation in input credit schemes, smallholder rice farmers in many developing countries see substantial improvement in their capacity to access productive resources, thereby improving their productivity, while simultaneously reducing food insecurity.Social implicationsLeveraging on the improved productivity of participants in the ICS, this study advocates that such input credit schemes should scale up to more food-insecure farming communities in Ghana.Originality/valueThe study uses a doubly robust econometric approach to evaluate the impact of ICS on smallholder rice farmers' productivity and food security in Ghana, making it the first of its kind. The findings offer a solid basis for future research and provide guidance for policymakers looking to boost agricultural development in Ghana.

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Nonfarm activity and market participation by farmers in Ghana

Cited by 8 publications

References 35 publications

Rural non-farm engagement and agriculture commercialization in Ghana

Rural non-farm engagement and agriculture commercialization in Ghana

Rural development in the digital age: Does information and communication technology adoption contribute to credit access and income growth in rural China?

Input credit scheme, farm productivity and food security nexus among smallholder rice farmers: evidence from North East Ghana

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