FERTILIZER SUBSIDY POLICY AND SMALLHOLDER FARMERS’ CROP PRODUCTIVITY: THE CASE OF MAIZE PRODUCTION IN NORTH-EASTERN GHANA

Abstract

Crop yield enhancing technologies such as inorganic fertilizers present opportunities for improving smallholder farmers’ crop yields, food security and incomes. This study examines maize productivity response to Ghana’s fertilizer subsidy policy focusing on yield differences between participants and non-participants in the Tempane District in Ghana among smallholder farmers. An Endogenous Switching Regression (ESR) model is employed to simultaneously examine the determinants of participation and its impact on maize productivity. The results show that education, nativity and media access are factors influencing the probability of fertilizer subsidy participation. The study reveals that participation in subsidized fertilizer policy is positively and significantly associated with maize productivity. Other factors such as fertilizer use rate, improved seeds and age enhance maize yield whilst non-farm work engagement negatively influences maize yield. These findings suggest that the impact of subsidized fertilizer on maize productivity can be enhanced with proper targeting and farmer education through field demonstrations.