The effects of land tenure systems and investments on cocoa productivity in Ghana

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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
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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.
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