SMALLHOLDER FARMERS’ PROVISION OF LABOUR SERVICES TO ARTISANAL SMALL-SCALE MINING: DETERMINANTS AND WELFARE EFFECTS IN NORTHERN GHANA

Abstract

Artisanal small-scale mining activities are on the rise with several concerns. Whiles these are issues of concern, farmers in the mining communities are providing labour services to ASM for wages. This study investigated the determinants of farmers’ decision to provide labour services to ASM. It also assessed the welfare effects of providing labour services to ASM operations. Multi-stage sampling technique was employed to collect cross-sectional data from 200 farm households in two districts in northern Ghana. Probit model was used to investigate factors influencing farmers’ decision to supply labour to ASM. Three main welfare outcomes were estimated: household per capita consumption expenditure, per capita income and household food security. An Endogenous Switching Regression (ESR) model was used to estimate the welfare effects of supply of labour services to ASM. Ownership of television, distance from home to mining site, access to agriculture extension and on-farm income were identified as factors influencing farmers’ decision to supply labour to ASM. From the estimates of the welfare outcomes, it was found that ASM had a positive and significant incremental effect on the welfare of farm households who provided labour services to ASM. Specifically, farmers who supply labour services were more food secured, and had higher per capita consumption expenditure and per capita income than their counterparts who did not supply labour to ASM. It is therefore recommended that community mining which has been promoted in the south, should be promoted in Northern Ghana which will have positive spill-effect on the farmers. Also, agriculture extension services should be intensified to quick farmers’ enthusiasm to enter into farming. Farmers should be sensitized to invest sums of money obtained from mining into their farming activities to expand their welfare net. Government should intensify the universal adult education which will help farmers in technology adoption and apply the best agronomic practices on their farms to boost their yields.