ALLOCATIVE EFFICIENCY, EMPLOYMENT AND RICE PRODUCTION RISK: AN ANALYSIS OF SMALLHOLDER PADDY FARMS IN THE UPPER EAST REGION OF GHANA

Abstract

A production function analysis was used to investigate resource use efficiency by smallholder rice farmers in the Upper East Region of Ghana and its impact on employment. Data was collected from a random sample of 440 farmers during the 200112002 cropping seasons. Empirical results show that smallholder rice farmers are allocatively inefficient in the use of labour, bullock and fertilizer. Nonirrigators created more job opportunities in the study area than irrigators. Smallholder farmers have developed coping mechanisms in order to minimize the negative impact of rice production risks. A progran to accelerate the provision of education and credit is needed The education programme should include both formal and non-formal elements. This is important for the improvement of farmers' abilities to retrieve and process information regarding modern agricultural technology. Effective farmer-centered technical training programmes are needed to build the capacities of small-scale farmers in resource mobilization and use. Research is also needed in areas of reducing rice production risks.