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 technologies 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 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.
TABLE OF CONTENTS
ABSTRACT
LIST OF TABLES
LIST OF FIGURES
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background to
the Study
1.2 Problem
Statement
1.3 Research
Questions
1.4 Objectives of
Study
1.4.1 Main Objective
1.4.2 Specific
Objectives
1.5 Justification
of Study
1.6 Organisation
of Study
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Soil Fertility
Status and Crop Production in SSA
2.2 Soil Fertility
Management (SFM) Technologies in SSA
2.2.1 Definition of
Concept
2.2.2 Paradigm Shifts
in SFM in SSA
2.2.3 Components of SFM Technologies in SSA
2.2.3.1 Biofertilizer as a Component of SFM
2.2.3.2 Mineral Fertilizer as a Component of SFM
2.2.3.3 Organic Fertilizers as a Component of SFM
2.2.3.4 The Use of Different Fertilizers in Combination
(ISFM)
2.2.4 Legume
Production in Ghana
2.3 Cost and
Benefits Associated with Improved SFM Technologies
2.4 Adoption of
Improved SFM Technologies
2.4.1 Concept of
Adoption and Adoption Theory
2.4.2 Measurement of
Adoption
2.4.3 Determinants of
Adoption
2.4.4 Constraints to
Adoption of SFM Technologies
2.4.5 Ex-ante
Evaluation
2.5 Farmers’
Willingness to Pay (WTP) for Improved SFM Technologies
2.5.1 Concept of WTP
2.5.2 Measuring WTP
2.5.3 Determinants of
WTP
CHAPTER THREE
3.0 STUDY AREA AND METHODOLOGY
3.1 Study Area
3.1.1 Northern Region
3.1.2 Upper West
Region
3.2 Data Types and
sources
3.3 Sampling
Procedure
3.4 Data
collection
3.5 Analytical
Framework
3.5.1 Cost-Benefit-Analysis
3.5.2 Factors
Influencing Adoption of Selected SFM Technologies Ex-ante
3.5.3 Willingness to
Pay for ‘best’ SFM technology
3.5.4 Constraints to
Adoption of SFM Technology Practices
CHAPTER FOUR
4.0 RESULTS AND DISCUSSION
4.1 Descriptive
Results
4.1.1 Demographic
Characteristics of Respondents
4.1.2 Information on
Farming and Institutional Variables
4.1.3 Crop Production
4.1.4 Crop Production
Area and Output of Major Crops Cultivated in 2015 Cropping Season
4.1.5 Farm Income and
other Household Income Sources
4.2 Awareness and
Use of SFM Technologies
4.3 Financial
Analysis of SFM Trials in Northern and Upper West Regions
4.3.1 Quantities and
Costs of Inputs under Different SFM Trials
4.3.2 Output and
Market Values Obtained under Different SFM Trials
4.3.3 Profitability
of Grain Legume Trials under Different SFM Technologies
4.4 Ex-ante
Adoption of Financially Rewarding Biofertilizer Technologies by Legume Farmers
4.5 Willingness to
Pay for SFM Technologies
4.5.1 Determinants of
Farmers’ Willingness to Pay for Selected SFM Technologies
4.5.2 Mean WTP for Selected SFM Technologies
4.6 Constraints
Hindering Adoption of SFM Technologies
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Key
Findings and Conclusion
5.2 Recommendations
REFERENCES
APPENDICES
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background to the Study
“Soil” has been identified as farmer’s greatest asset
(Fairhurst, 2012). This notwithstanding, soil fertility status continues to be
an issue of great concern in sub-Saharan Africa (SSA) where an estimated amount
of 75% of farmlands are recorded to be severely depleted of essential soil
nutrients (especially nitrogen and phosphorus). Ghana has been identified as
one of the countries in sub-Saharan Africa with the highest rate of soil
nutrient depletion (World Bank, 2007).
Ghana has a total landmass of about 155,000 km2 (23,853,900
ha) of which about 57% is considered arable; a significant portion of this
landmass is however inherently deficient in terms of fertility (Guo et al,.
2013; Jayne, 2015; USAID, 2015). Of the total agrarian land cultivated in
Ghana, smallholder farms dominate with about 90% being less than two hectares,
typically rain-fed and with the use of rudimentary agricultural technologies
accounting for about 80% of total agricultural production.
There is need for substantial investment in soil health and
fertility as continuous degeneration in soil fertility status stands out as the
key-contributing factor to low per capita food production leading to food
insecurity and poverty among smallholder farmers in Sub-Saharan Africa (Sanchez
et al,. 1997).
A substantial segment of people in SSA live in extreme
poverty most of who are smallholder food crop farmers with the main cereal and
legume crops being their priority crops of cultivation. The yields of these
crops are however far below the actual attainable levels and this has been
attributed to no or low-level of fertilizer use. Yields of the main grain
cereals have been reported to be less than 1.5 tons/ha as against the actual
attainable yield of about 5 tons /ha and that for legume has been estimated at
about 0.7 ton/ha as against the attainable yield of about 3 tons/ha (Smale and
Heisey, 1993; Jager et al,. 2001; Mutegi and Zingore, 2001).
In Ghana, poverty is noted to be mostly concentrated among
smallholder farmers in Northern Ghana (Upper West, Upper East and Northern
Regions) who are mostly food crop farmers with family oriented farms practicing
traditional production technologies (GSS, 2007). Their traditional practices of
nutrient management have however become obsolete due to increased concerns
about environmental stewardship in agriculture and cost related factors. Hence,
to practice sustainable agriculture, farmers are being advised to reduce the
use of expensive chemical inputs and intensify the use of natural or biological
inputs. Conventional fertilizer use and intensity in Sub-Saharan Africa remains
the lowest in the world due to several factors including cost. The use of bio
inputs is gaining attention as a potential solution to the improvement of soil
fertility and agricultural productivity in SSA owing to their
cost-effectiveness and environmentally-friendly nature (Stella et al,. 2013;
Chapoto et al,. 2015).
A study by N2 Africa (2013) in Ghana recognized legumes
(soybean, cowpea and groundnuts) as very important contributors to household
income and food security. They are referred to as meat for the poor due to
their protein content (Mushi, 1997), with production concentrated mainly in the
three northern regions of Ghana (Northern Region, Upper West and Upper East).
The two most prevalent challenges facing legume farmers in
Ghana are erratic rainfall pattern together with inaccessibility and exorbitant
prices of fertilizers including grain legume specific fertilizers (Single Super
Phosphate, Urea and Triple Super Phosphate among others). Since little can be
done about the climatic conditions affecting legume production, to a large
extent, if appropriate and affordable fertilizer technologies are established,
the existing yield gaps in grain legume production in Ghana can be bridged.
Consequently, there are calls for increased use of less
costly and more environmentally friendly soil fertility management
technologies. And these include the use of biological sources (organic
fertilizers and biofertilizers) and/or integrated soil fertility management
(ISFM) practices (i.e. integrated use of the different fertilizer sources).
Some of the aforementioned technologies have been proven agronomically to
increase yields of legumes and also increase the reserves of the most limiting
plant nutrients (especially nitrogen and phosphorus) for the benefit of other
non-leguminous crops planted in rotation. However, the financial/economic assessment of the technologies and the future adoption
behavior of grain legume farmers are still in the realm of speculation. This
study was intended to shed light on these important issues in order to bridge
the knowledge gap that currently exists.
1.2 Problem Statement
A sector that once served as the backbone of the Ghanaian
economy, agriculture now forms only a fifth of Ghana’s GDP, employing more than
40% of the economically active population with an approximated 2.74 million
households engaged in farming. Also noted as the country’s major foreign
exchange earner, a total of 80% of agricultural output is supplied by
smallholder farmers (GNC, 2010; ISSER, 2010; FAOSTAT, 2014).
Despite the sector’s immense contribution to livelihoods, the
incidence of low crop productivity is a general problem facing most farming
systems in sub-Saharan Africa (SSA), with deteriorating soil fertility status
standing out as a major constraint. Soils in SSA are usually low in nitrogen
and phosphorous (the most limiting plant nutrients) and this gives rise to low
yields.
These low yields are particularly pronounced in grain legumes
as a result of low or no use of fertilizer sources by farmers. This behavior of
legume farmers is attributed to lack of awareness of the possible economic
returns from fertilization and/or the high cost of fertilizers (mineral
fertilizer) which majority of African smallholder farmers are unable to afford.
Low cost and sustainable solutions compatible with the
socioeconomic conditions of smallholder farmers are therefore needed to solve
these soil fertility problems. A recognized approach by soil scientists and
agronomists to dealing with soil health and fertility problems of smallholder
farmers has been the introduction of cost effective and yield rewarding soil
fertility management technologies or packages (biofertilizers, organic
fertilizers and ISFM). The adoption of such modern improved agricultural
technologies has however been low in Ghana and this has been acknowledged as a
key factor to low productivity of agriculture in the country (Abunga, et al,.
2012).
The IITA project on “Institutionalization of quality
assurance mechanisms and dissemination of top quality commercial products to
increase yields and improve food security of smallholder farmers in sub-Saharan
Africa (COMPRO-II) has supported trials of different soil fertility management
technologies in a number of African countries including Ghana. The trials are
aimed at identifying various technologies that enhance soil fertility and
agronomic performance of crops in order to recommend such soil fertility
management technologies to farmers for adoption.
Even though positive agronomic responses have been observed
in a wide range of field trials, there is remarkable inconsistency in responses
across crops, regions and agroecologies.
Without downplaying the importance of the soil and agronomic
outcomes (i.e. biological parameters) of these trails, a major and equally
important aspect is the financial profitability/viability of the different
treatments or combinations of soil fertility management technologies or
packages since it is very critical for policy, dissemination and adoption
purposes. Such an assessment of the different technologies will provide a
holistic view to guide the selection of the most promising options for
dissemination to farmers.
Upon selection of the ‘best/viable’ SFM technologies,
farmers’ perceptions about them and their willingness to adopt and pay for such
packages needed to be examined to boost the success of future dissemination and
adoption efforts.
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