The effects of land tenure systems and investments on cocoa productivity in Ghana
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Date
October, 2015
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Abstract
The overall objective of this study was to analyse the relationships between land tenure
and investment as well as land tenure and cocoa productivity in the Bibiani-Anhwiaso-Bekwai District in Ghana. A multistage random sampling technique was used to collect
data from 252 cocoa producing households. The study revealed that customary land
tenure (51%), owner-operated (7%) and sharecropping (42%) are the three main land
tenure systems in the district. Under the sharecropping contract, Abunu (96.2%) and
Abusa (3.8%) were identified. The empirical results on investment options showed that
both owner-operated and sharecropping land tenure systems had positive effect on
investment in fertilizer and pesticide by the cocoa farmers. This suggests that farmers
operating both owner-operated and sharecropping cocoa farms are likely to invest more
into fertilizer and pesticide to increase yield. The results also revealed that both gender
and age had positive effect on investment in fertilizer by cocoa farmers. Farm size
exerted negative effect on investments in fertilizer but positive effect on investments in
pesticide. The result further revealed that farm parcel or several farms had a positive
effect on investment in fertilizer. Farm parcel or several farms recorded a negative effect
with pesticide. The empirical results further indicate that both sharecropping and owner-operated tenure exert negative effects on cocoa productivity but, fertilizer and pesticide
exert positive effect on cocoa productivity. The results indicate the premium cocoa
farmers place on fertilizer and pesticide. Both gender and age influenced productivity
negatively. Education on the other hand recorded a positive effect on productivity. One
major determinant of cocoa yield, household size had a significant positive effect on
productivity. It was also revealed that the effect of farm size on productivity was
negative. However, credit had a negative effect on productivity indicating low or lack of
credit use among the farmers interviewed. Finally, extension also took a positive sign,
suggesting a high level of information dissemination on proper cocoa production
technologies and management practices. The study recommends provision of cocoa
fertilizer on credit under the Cocoa Hi-Tech Project and spraying of cocoa farms under
the Cocoa Mass Spraying Project by the government to be revived to increase yield
Description
A thesis submitted to the Department of Agricultural Economics, Agribusiness andExtension, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Philosophy in Agricultural Economics.