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Input credit scheme, farm productivity and food security nexus among smallholder rice farmers: evidence from North East Ghana

Camillus Abawiera Wongnaa (Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
Alhassan Abudu (Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
Awal Abdul-Rahaman (Department of Agribusiness, University for Development Studies, Tamale, Ghana)
Ernest Amegawovor Akey (Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
Stephen Prah (Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)

Agricultural Finance Review

ISSN: 0002-1466

Article publication date: 11 September 2023

Issue publication date: 5 December 2023

338

Abstract

Purpose

This study examined the impact of the Input Credit Scheme (ICS) by the Integrated Water Management and Agriculture Development (IWAD) on the productivity and food security of smallholder rice farmers in Ghana.

Design/methodology/approach

Cross-sectional data from 250 rice farming households in the Mamprugu Moagduri district of the North East Region obtained from a multi-stage sampling technique were used for the study. Inverse Probability Weighted Regression Adjustment (IPWRA), Propensity Score Matching (PSM) and Kendall's coefficient of concordance were the methods of analysis employed.

Findings

Empirical results show that education, rice farming experience, dependency ratio, FBO membership, farm size and farm age were the significant factors influencing participation in the input credit scheme (ICS). Also, participants had an average rice productivity of 1,476.83 kg/ha, whereas non-participants had 1,131.81 kg/ha implying that participants increased their productivity by about 30%. In addition, the study revealed that participant households increased their household dietary diversity (HDDS) by 0.45 points amounting to about 8% diversity in their diets. High-interest rates associated with credit received, the short periods of credit repayment and the high cost of inputs provided under the scheme were the most challenging constraints associated with partaking in the ICS.

Practical implications

The available literature on agricultural interventions have predominantly emphasized input credit as a key factor for improving cropt productivity and food security of smallholders. This study provides compelling evidence that participation in ICSs can result in substantial benefits for agricultural development, as evidenced by increased productivity leading to improved food security. The significance of these findings is highlighted by the fact that, through participation in input credit schemes, smallholder rice farmers in many developing countries see substantial improvement in their capacity to access productive resources, thereby improving their productivity, while simultaneously reducing food insecurity.

Social implications

Leveraging on the improved productivity of participants in the ICS, this study advocates that such input credit schemes should scale up to more food-insecure farming communities in Ghana.

Originality/value

The study uses a doubly robust econometric approach to evaluate the impact of ICS on smallholder rice farmers' productivity and food security in Ghana, making it the first of its kind. The findings offer a solid basis for future research and provide guidance for policymakers looking to boost agricultural development in Ghana.

Keywords

Acknowledgements

Erratum: It has come to the attention of the publisher that the article “Input credit scheme, farm productivity and food security nexus among smallholder rice farmers: evidence from North East Ghana” by Camillus Abawiera Wongnaa, Alhassan Abudu, Awal Abdul-Rahaman, Ernest Amegawovor Akey and Stephen Prah, published in Agricultural Finance Review, Vol. ahead-of-print, No. ahead-of-print, https://doi.org/10.1108/AFR-03-2023-0039, contained an error in the affiliation details for Camillus Abawiera Wongnaa, which was not corrected during the production process. Camillus Abawiera Wongnaa is affiliated with Kwame Nkrumah University of Science and Technology - not Kumasi Polytechnic. This error has been corrected online and the publisher sincerely apologises for any misunderstanding.

Citation

Wongnaa, C.A., Abudu, A., Abdul-Rahaman, A., Akey, E.A. and Prah, S. (2023), "Input credit scheme, farm productivity and food security nexus among smallholder rice farmers: evidence from North East Ghana", Agricultural Finance Review, Vol. 83 No. 4/5, pp. 691-719. https://doi.org/10.1108/AFR-03-2023-0039

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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