INVESTIGATING PROFIT EFFICIENCY OF THE SYSTEM OF RICE INTENSIFICATION (SRI) IN NORTHERN GHANA

Abstract

Since the introduction of Green Revolution, increasing productivity of food crops like rice has mainly been inspired by the adoption of improved on-farm technologies. In Africa and Ghana in particular, the adoption of improved farming techniques could accelerate domestic rice farming and the profitability of smallholder agriculture. The main objective of this study was to examine farmers' adoption of SRI and the effect of adoption on profit efficiency (PE). A multi-stage sampling approach was adopted and data was collected from 210 rice farmers using semi-structured questionnaires. Frequency and percentage distribution tables and the Poisson model were employed to identify farmers' reasons for adoption and non- adoption of the SRI and the factors influencing SRI adoption. Also, the Stochastic Frontier profit model with correction for observed and unobserved heterogeneity was used to estimate the effect of SRI adoption on profit efficiency. The results revealed that 44 percent of the farmers adopted SRI based on the perception that it lowers costs and improves rice yields. About 56 percent did not adopt SRI due to difficulties with use, lack of access to and limited knowledge of SRI, low income and lack of access to credit. The factors which significantly influence farmers' adoption of SRI include gender, age, status of farmer in the household, FBO membership, access to credit and training on farm management practices. The significant determinants of rice profit were land, prices of output, labour, fertilizer, seed and agrochemicals. Mean PE for adopters ranged from 56% to 62% while PE for non-adopters ranged from 43% to 53%, which suggests that adoption of SRI increases PE of rice farmers. The study suggests that rice farmers should be educated and trained to adopt SRI.