Ghana’s Fertiliser Subsidy Programme: Assessing Farmer Participation and Perceptions of its Effectiveness

Benjamin Tetteh Anang, Solace Kudadze

Abstract

In 2008, the Government of Ghana introduced a national fertiliser subsidy programme to promote the production of cereals in the country. Documented evidence of the impact of the programme, factors affecting participation, and the perceptions of farmers about its effectiveness remains scanty and hard to find. This study therefore sought to investigate the factors affecting participation in the subsidy programme as well as farmers’ perceptions about its effectiveness using data from a cross-section of 300 farm households in northern Ghana. The study employed a probit model to assess the factors affecting participation in the subsidy programme while descriptive statistics were used to present the findings on farmers’ perceptions. The results indicated that participation in the subsidy programme is significantly influenced by educational status and farming experience of the household head, contact with agricultural extension agents, herd size, degree of specialisation in rice production, use of farm mechanisation and location of the farm. Furthermore, farmers perceived the subsidy programme to be ineffective in terms of timeliness, availability and distribution of subsidised fertiliser, access to coupons (vouchers), and distance to fertiliser depots. The findings underscore the need to ensure adequate and timely supply of subsidised fertiliser, improve communication on the availability of both fertiliser coupons and subsidised fertiliser, as well as increase in the number of extension workers to enhance the effectiveness of the subsidy programme.

Keywords

Fertiliser subsidy, perceptions, probit model, smallholder farmers, Ghana

Full Text:

PDF

References

Abdoulaye, T., and Sanders, J. H. 2005. Stages and determinants of fertiliser use in semiarid African agriculture: The Niger experience. Agric. Econ. 32: 167–179.

Alfsen, K.H., Bye, T., Glomsrod, S., and Wiig, H. 1997. Soil degradation and economic development in Ghana. Environment and Development Economics, 2: 119-143.

Asenso-Okyere, K.W. 1994. Fertiliser pricing and distribution policy in Ghana. In: Issues in African Rural Development. Winrock International Institute for Agricultural Development, Morrilton, Arkansas.

AU (African Union) 2006. Abuja Declaration on Fertiliser for the African Green Revolution. Declaration of the African Union. Special Summit of the Heads of States and Governments, Abuja, Nigeria. 13 June 2006. Available at http://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/african-fertiliser-financing-mechanism/abuja-declaration/ (Accessed 25 November 2018).

Chibwana, C., Shively, G., Fisher, M., Jumbe, C. and Masters, W. 2009. Measuring the impacts of Malawi’s farm input subsidy programme. African Journal of Agriculture and Resource Economics, 9(2): 132-147.

Chirwa, E. W., Matita, M. and Dorward, A. 2011. Factors Influencing Access to Agricultural Input Subsidy Coupons in Malawi. FAC Working Paper 027, Brighton, UK: Future Agricultures Consortium.

Crawford, E.W, Jayne, T.S., and Kelly, V. A. 2006. Alternative Approaches for Promoting Fertiliser Use in Africa. Agriculture and Rural Development Discussion Paper 22, World Bank, Washington, D.C.

Denning, G., Kabambe, P., Sanchez, P., Malik, A., Flor, R., Harawa, R., Nkhoma, P., Zamba, C., Banda, C., Magombo, C., Keating, M., Wangila, J., and Sachs, J. 2009. Input subsidies to improve smallholder maize productivity in Malawi: Toward an African green revolution. Plos Biology 7(1): 0002–0010.

Dorward, A. and Chirwa, E. 2011. The Malawi agricultural input subsidy program: 2005/2006 to 2008/2009. International Journal of Agricultural Sustainability (9)1: 232–247.

Dorward, A., Kydd, J., Morrisson, J. and Urey, I. 2004. A policy agenda for pro-poor agricultural growth. World Development 32: 73–89.

Druilhe, Z., Barreiro-Hurl´e, J. 2012. Fertiliser subsidies in sub-Saharan Africa. SA Working Paper No. 12-04. Food and Agriculture Organisation of the United Nations, Rome.

Fan, S., Johnson, M., Saurkar, A., Makombe, T. 2009. Investing in African agriculture to halve poverty by 2015. ReSAKSS Working Paper No. 25, International Food Policy Research Institute (IFPRI), Washington, DC.

Gladwin, C.H., Randall, A., Schmitz, A., and Schuh, G. E. 2002. Is fertiliser a public or private good in Africa? An opinion piece. African Studies Quarterly 6: 1–2.

Holden, S.T., Lunduka, R. 2012. Do fertiliser subsidies crowd out organic manures? The case of Malawi. Agric. Econ. 43(3): 303–314.

Imoru, J. A. and Ayamga, M. 2015. Fertiliser subsidy effects on fertiliser use in the northern region of Ghana. African Journal of Agricultural Research, 10(53): 4926-4936.

Jayne, T.S. and Rashid S. 2013. Input subsidy programs in sub-Saharan Africa: a synthesis of recent evidence. Agricultural Economics 44 (2013): 547–562.

Jayne, T. S., Mather, D., Mason, N. M., Ricker-Gilbert, J. 2013. How do fertiliser subsidy programs affect total fertiliser use? Crowding out, diversion, and benefit/cost assessments. Agricultural Economics, 44(6): 687–703. DOI: 10.1111/agec.12082

Larson, B. A. 1993. Fertilisers to Support Agricultural Development in Sub-Saharan Africa: What is Needed and Why? Center for Economic Policy Studies, Winrock International Institute for Agricultural Development, Mimeo, Washington, D.C., USA.

Lunduka, R., Ricker-Gilbert, J. and Fisher, M. 2013. What are the farm-level impacts of Malawi's farm input subsidy program? A critical review. Agricultural Economics, 44: 563–579. doi: 10.1111/agec.12074

Minot N. and Benson, T. 2009. Fertiliser subsidies in Africa: Are vouchers the answer? Policy Brief 60. Washington, D.C.: International Food Policy Research Institute.

MoFA (Ministry of Food and Agriculture) 2008. Highlight on Fertiliser Subsidy Policy Implementation Strategy. Ministry of Food and Agriculture, Statistics, Research and Information Directorate, Accra, Ghana.

Morris, M., Kelly, V., Kopicki, R., and Byerlee, D. 2007. Fertiliser Use in African Agriculture: Lessons Learned and Good Practice Guidelines. Agriculture and Rural Development Division, World Bank, Washington, DC. 203.

Mustapha, S., Abdulai, I. A. and Ustarz, Y. 2016. Asian Journal of Agricultural Extension, Economics and Sociology, 11(3): 1-11.

Ricker-Gilbert, J., Jayne, T., and Shively, G. 2013. Addressing the “wicked problem” of input subsidy programs in Africa. Applied Economic Perspectives and Policy, 35(2): 322-340.

Sachs, J. 2012. How Malawi fed its own people. New York Times Op-Ed piece, 19 April, 2012.

Shepherd, A. 1989. Approaches to the privatisation of fertiliser marketing in Africa. Food Policy 14(2):143-154.

Shively, G. E. and Ricker-Gilbert, J. 2013. Measuring the Impacts of Agricultural Input Subsidies in Sub-Saharan Africa: Evidence from Malawi's Farm Input Subsidy Program. Global Policy Research Institute (GPRI) Policy Briefs: 1(1), Article 4. Available at: http://docs.lib.purdue.edu/gpripb/vol1/iss1/4.

Singh, G. 2015. Agricultural mechanisation development in India. Indian Journal of Agricultural Economics, 70: 64-82.

Stavytskyy, A. and Prokopenko, O. 2017. Investments in agricultural machinery and its efficiency in Ukraine. Ekonomika 96(1): 113-130.

World Bank 2007. World Development Report 2008: Agriculture for Development. World Bank, Washington, DC.

Xu, Z., Burke, W.J., Jayne, T.S., and Govereh, J. 2009. Do input subsidy programs “crowd in” or “crowd out” commercial market development? Modeling fertiliser demand in a two-channel marketing system. Agricultural Economics, 40, 79-94.

Yawson, D. O., Armah, F. A., Afrifa, E. K. A. and Dadzie S. K. N. 2010. Ghana’s Fertiliser Subsidy Policy: Early field lessons from farmers in the Central Region. Journal of Sustainable Development in Africa, 12(3): 191-203.

DOI: https://doi.org/10.25077/ijasc.3.1.1-11.2019

Refbacks

  • There are currently no refbacks.