TECHNICAL EFFICIENCY IN CROP PRODUCTION AND ENVIRONMENTAL RESOURCE MANAGEMENT PRACTICES IN NORTHERN GHANA

Abstract

Majority of the people in northern Ghana are peasants who depend almost exclusively on renewable natural resources for their livelihoods and survival, but they are constrained partly by inadequate water availability for their production activities as well as deteriorating soil conditions. As a result, soil management practices are promoted in the area, but the link between the use of the practices and farmer efficiency is yet to be shown empirically. This study, therefore, examines the effect of adoption of the practices on crop production technical efficiency. Data for the study are obtained from a sample of 445 households using a multi-stage sampling approach. The study employs a stochastic frontier framework with an instrumental variables approach. The chosen half-normal model shows adopters are on average 6.0% more technically efficient than non-adopters. This implies that, besides enhancing the environment, adoption of soil management practices also leads to increased productivity.