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Income diversification by farm households has gained the attention of researchers and policy makers due to its commonness especially in developing countries. This study sought to empirically investigate the determinants of off-farm income among smallholder farmers in northern Ghana using a sample of 300 rice farmers. A double-hurdle model was used to determine the factors influencing participation in off-farm work as well as the predictors of actual amounts earned from working outside the farm. The results revealed that gender, farming experience, years of education, and access to credit are the factors determining participation in off-farm work while farming experience, years of education, and geographical location are the determinants of income from off-farm work. The paper concludes that measures to enhance rural income diversification will spur the rural economy and these measures should seek to address the problem of low level of formal education in rural areas.

Abstract:Rice production is an important economic activity among smallholder farmers in northern Ghana serving as source of income and household food security. The production of rice is often associated with the use of pesticides to control harmful pests of rice, a practice which also poses environmental and human health risks. The study sought to investigate the factors which influence smallholder rice farmers' use of pesticides in rice farming in northern Ghana. Rice farmers were selected from three irrigation schemes in northern Ghana, namely the Botanga, Tono and Vea Irrigation Schemes. A multi-stage stratified random sampling technique was used to identify 300 rice farmers who were interviewed with a semi-structured questionnaire. The data was analyzed both descriptively and inferentially. A probit model was used to study the determinants of pesticide use. The study showed that farm size, farm income, mechanization, extension contact, distance to source of pesticide and production system were the influencial factors in rice producers' choice to use pesticide in rice farming. The study recommends extension education to farmers on pesticide use in order to avoid misuse and the risks factors associated with improper application.