2021/01/05 by Abraham Zakaria, Shaibu Baanni Azumah, Gilbert Dagunga +2
Agricultural and Biological Sciences · Business, Management and Accounting · Economics, Econometrics and Finance · #Agricultural Innovations and Practices #Innovation and Socioeconomic Development #Microfinance and Financial Inclusion
paper · doi:10.1108/afr-07-2020-0108
openalex publication_date 2021/01/05 · crossref created 2021/01/05 · crossref issued 2021/01/06 · crossref published 2021/01/06 · crossref published-online 2021/01/06 · crossref published-print 2021/07/08 · crossref deposited 2025/07/24 · openalex created_date 2025/10/10 · crossref indexed 2026/07/25 · openalex updated_date 2026/07/26
Purpose The purpose of this study is to estimate the profitability of rice production for irrigated and rain-fed farmers; determine the factors that influence farmers' decision to participate in irrigation and the impact of irrigation on rice farmers' profitability in northern Ghana. Design/methodology/approach Using cross-sectional data collected from 543 rice farmers in northern Ghana, the study employed both non-parametric (cost benefit analysis) and parametric (endogenous switching regression) approaches to analyse the data. Findings The empirical results reveal a significant difference between the profits of irrigated (GHS 2442.30) and rain-fed farmers (GHS 576.20), as well as the cost-benefit ratios between irrigators (2.53) and rain-fed farmers (1.37). Also, participation in irrigation was found to be influenced by relatively small farm size and off-farm income; while profitability was influenced by membership in a farmer-based organization, access to agricultural extension services and perception of decreasing rainfall intensity. Irrigation also had a positive significant net impact on profitability of rice production. Research limitations/implications The results provide justification for development partners and the government of Ghana through the “one-village-one-dam” policy, to invest in irrigation in northern Ghana in order to improve household welfare as well as build resilience for sustainable production systems. Originality/value This study is the first of its kind to provide a robust analysis of the difference in profits of rain-fed and irrigated rice farmers while estimating the determinants of Ghanaian farmers' choice of either of the regimes within a bias-corrected framework.