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Profitability analysis of rice production: a microeconomic perspective from northern Ghana
Agricultural Finance Review Pub Date : 2021-01-06 , DOI: 10.1108/afr-07-2020-0108
Abraham Zakaria , Shaibu Baanni Azumah , Gilbert Dagunga , Mark Appiah-Twumasi

Purpose

The purpose of this study is to estimate the profitability of rice production for irrigated and rain-fed farmers; determine the factors that influence farmers' decision to participate in irrigation and the impact of irrigation on rice farmers' profitability in northern Ghana.

Design/methodology/approach

Using cross-sectional data collected from 543 rice farmers in northern Ghana, the study employed both non-parametric (cost benefit analysis) and parametric (endogenous switching regression) approaches to analyse the data.

Findings

The empirical results reveal a significant difference between the profits of irrigated (GHS 2442.30) and rain-fed farmers (GHS 576.20), as well as the cost-benefit ratios between irrigators (2.53) and rain-fed farmers (1.37). Also, participation in irrigation was found to be influenced by relatively small farm size and off-farm income; while profitability was influenced by membership in a farmer-based organization, access to agricultural extension services and perception of decreasing rainfall intensity. Irrigation also had a positive significant net impact on profitability of rice production.

Research limitations/implications

The results provide justification for development partners and the government of Ghana through the “one-village-one-dam” policy, to invest in irrigation in northern Ghana in order to improve household welfare as well as build resilience for sustainable production systems.

Originality/value

This study is the first of its kind to provide a robust analysis of the difference in profits of rain-fed and irrigated rice farmers while estimating the determinants of Ghanaian farmers' choice of either of the regimes within a bias-corrected framework.



中文翻译:

水稻生产的盈利能力分析:来自加纳北部的微观经济视角

目的

本研究的目的是估计灌溉和雨养农民水稻生产的盈利能力;确定影响农民参与灌溉决策的因素以及灌溉对加纳北部稻农盈利能力的影响。

设计/方法/方法

该研究使用从加纳北部 543 名稻农收集的横截面数据,采用非参数(成本效益分析)和参数(内生转换回归)方法来分析数据。

发现

实证结果显示,灌溉农民 (GHS 2442.30) 和雨养农民 (GHS 576.20) 的利润存在显着差异,灌溉农民 (2.53) 和雨养农民 (1.37) 的成本收益比也存在显着差异。此外,还发现参与灌溉受相对较小的农场规模和非农收入的影响;虽然盈利能力受到以农民为基础的组织的成员身份、获得农业推广服务的机会以及对降雨强度降低的看法的影响。灌溉也对水稻生产的盈利能力产生了积极的显着净影响。

研究限制/影响

结果为发展伙伴和加纳政府通过“一村一坝”政策投资于加纳北部的灌溉以改善家庭福利以及建立可持续生产系统的复原力提供了理由。

原创性/价值

这项研究是同类研究中的第一个,对雨养稻农和灌溉稻农的利润差异进行了强有力的分析,同时在偏差校正框架内估计了加纳农民选择任何一种制度的决定因素。

更新日期:2021-01-06
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