Economic assessment of the trials and adoption of selected Soil Fertility Management (SFM) technologies among grain legume farmers in the Northern and Upper West Regions of Ghana.
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Date
NOVEMBER, 2016
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Abstract
In the face of high prices of existing mineral fertilizers, farmers in Ghana need cost effective Soil Fertility Management (SFM) technologies to address the problem of
low crop yields, which are particularly pronounced in grain legumes. This study
assessed the financial returns associated with different SFM trials conducted on grain
legumes (soybean, cowpea and groundnuts) in northern Ghana in order to examine
farmers’ adoption decision ex-ante and willingness to pay for the most financially
rewarding technologies. Benefit-cost ratio analysis based on experimental data
identified bio -fertilizer technologies (Biofix, BR3267 and Legumefix) as the most
financially viable SFM technologies for grain legumes (soybean, cowpea and
groundnut respectively) production. The study elicited primary data from 400 grain
legume farmers randomly selected from Northern (200) and Upper West (200)
Regions to evaluate adoption decisions and willingness to pay for the three selected
SFM technologies. Evidence from the study shows that a significant proportion of
farmers (>50%) were willing to adopt each of the three selected biofertilizer packages
when they are made available on the market. A multivariate probit model identified
farming experience, membership of Farmer Based Organizations (FBOs), farm
income, amount of credit used and distance to extension office as critical variables
influencing farmers’ adoption decision. Generally, legume farmers in Northern Region
were willing to pay higher for the three biofertilizer packages as compared to their
counterparts in Upper West Region. For 0.2 kg each of Biofix, BR3267 and
Legumefix, farmers in Northern Region were willing to pay approximately GHC
17.00, GHC 12.00 and GHC 23.00 respectively whereas those in Upper West Region
were willing to pay GHC 14.00, GHC 9.00 and GHC 11.00 for the same quantity of
each SFM technology respectively. The study has revealed that farming experience,
FBO membership, awareness and use of biofertilizers are the significant determinants
of farmers’ willingness to pay for biofertilizers. The most critical constraints hindering
adoption of SFM technologies among grain legume farmers were identified to be high
cost of technologies, unavailability and inadequacy of information on potentials of
SFM technologies. Even though, biofertilizer technolog ies present key opportunity in
resolving soil fertility deficiencies, they are quite new and most farmers are unaware
of their use in grain legume production. The study therefore recommended sustained
awareness creation through periodic education and sensitization by using FBOs as
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leverage points. This and other recommendations from the study are expected to
improve the future adoption of biofertilizers to improve the productivity and profitability of grain legume production in northern Ghana.
Description
This thesis is submitted to the Department of Agricultural Economics, Agribusiness and Extension Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for Masters of Philosophy Degree in Agricultural Economics,