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Effect of input credit on smallholder farmers’ output and income: Evidence from Northern Ghana

Adam Iddrisu (International Crops Research Institute for the Semi-Arid Tropics, Tamale, Ghana)
Isaac Gershon Kodwo Ansah (Department of Agricultural and Resource Economics, University for Development Studies, Tamale, Ghana)
Paul Kwame Nkegbe (Department of Economics & Entrepreneurship Development, University for Development Studies, Tamale, Ghana)

Agricultural Finance Review

ISSN: 0002-1466

Article publication date: 20 November 2017

Issue publication date: 12 January 2018

482

Abstract

Purpose

The purpose of this paper is to examine the effect of input credit on smallholder farmers’ output and income using Masara N’Arziki support project in Northern Ghana.

Design/methodology/approach

A cross-sectional primary data set was used to estimate the effect of project participation on farm output, yield and income using propensity score matching (PSM) methods.

Findings

The findings are that project participation is skewed towards experienced farmers with big-sized households and farms. The effect of project on outcomes is somewhat unsatisfactory in the sense that participation only raises output and yield, but not income.

Research limitations/implications

The paper only examined the project effect on farm outcomes among smallholder farmers participating in the programme in just one operational area in the Northern region. Future research should consider all the operational areas for an informed generalisation of findings.

Practical implications

Greater benefits to farmers from programme participation would require project management to review the contractual arrangement so that the high cost of input credit is significantly reduced.

Originality/value

The paper applied the PSM to estimate the effect of project participation on farm output, yield and income among smallholder farmers which is non-existent in the literature on the study area, at least as far as we know. This paper can inform future policy on the direction and nature of support for smallholder farmers in Northern Ghana.

Keywords

Citation

Iddrisu, A., Ansah, I.G.K. and Nkegbe, P.K. (2018), "Effect of input credit on smallholder farmers’ output and income: Evidence from Northern Ghana", Agricultural Finance Review, Vol. 78 No. 1, pp. 98-115. https://doi.org/10.1108/AFR-05-2017-0032

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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