EFFECTS OF BLOCK FARM CREDIT PROGRAMME PARTICIPATION ON CROP OUTPUT IN THE NORTHERN REGION OF GHANA

Abstract

The study examined the effect of the MoFA Block Farm Credit Programme (BFCP) participation on crop output in the Northern Region. Structured questionnaires were used to gather data from 240 beneficiary and non-beneficiary farmers of BFCP. Descriptive statistics were used to analyse the socioeconomic variables of both participants and non-participants ofBFCP. Treatment effect model was employed to analyse the socioeconomic factors that influence farmers' decision to participate in the BFCP and the effect of BFCP participation on crop output. The results showed that farming experience, membership of Farmer Based Organization and extension visits were the positive determinants of BFCP participation. Also, farm size, quantity of seed used, quantity of fertiliser used and BFCP participation positively influenced crop output. Inadequacy of BFCP input, late delivery of the BFCP inputs, low publicity about the programme and difficulty in accessing the inputs from the Districts Agricultural Officers were some of the factors that prevented farmers from the BFCP participation. It is recommended that government should re-introduce the BFCP and mainstream it with the provision of agricultural extension services, as this would significantly improve the output of farmers. Formation of FBOs should also be taken serious by farmers so that they can benefit from government interventions as well as other organizations since many NGOs and financial organisations prefer working with groups instead of individual farmers.