PERENNIAL CROP PRODUCTION: IMPLICATIONS ON WELFARE OF FARMERS IN NORTHERN GHANA

Abstract

Crop production in Northern Ghana over the past decades has been mostly annual crops. This, however, has been characterized by low productivity as a result of degraded soil conditions, reliance on unpredictable rainfall pattern, and also, in most cases, lack of access to the right primary inputs and market incentives. All these contribute to making farmers worse-off. Thus, increasing poverty levels and food insecurity. One way of addressing this increase in poverty levels and food insecurity is by considering tree crops. As a result, this study seeks to assess whether tree/fruit crop production as an alternative approach to crop production in the Northern Ghana contributes significantly to farmers‟ welfare. The study administered a semistructured questionnaire to 384 farm households selected through a multi-stage random sampling technique (simple random, purposive sampling and cluster sampling methods) from six (6) districts in Northern Ghana. This study identifies the determinants of perennial crop production by employing the bivariate probit model, and also, to test the complementarity and/or substitutability of cashew and mango production in Northern Ghana. Results of the bivariate probit estimation show that cashew and mango are substitutes. Factors such as access to credit, the distance of farm from home and distance of farm from the market has a positive and significant bearing on cashew production. On the contrary, household size, FBO membership and years spent in school are likely to affect the production of cashew negatively. With the determining factors for mango production, household size, access to extension services and FBO membership have positive and significant effects on mango production, contrary to the age of respondent which has a negative and significant influence on mango production. Using Propensity Score Matching to correct for selfselection bias and observed endogeneity, the study found out that producers of perennial crops have higher consumption expenditure per capita and higher income levels (a proxy for welfare) than annual crop producers. Finally, the effect of perennial crop production on livelihood diversification and food security was assessed within the framework of Conditional Mixed Process (CMP). The study also revealed through the CMP analysis that perennial crops contributes significantly to food security through livelihood diversification in the Northern region. It was also observed that the proportion of income earned from the production of perennial crops significantly contributes to livelihood diversification. The study, therefore, recommends that more educational campaigns and sensitization on perennial crop production needs to be done to create awareness and, subsequently make farmers to adopt the perennial crop production (Mango and cashew) as an alternative means of livelihood. Moreover, programs and policies should be designed towards strengthening the facilitation of FBOs and encouraging the youth to go into the production of perennials for an enhanced welfare. Also, access to credit and extension services should be intensified to enable perennial crop farmers increase their output, and subsequently improve their welfare.