Awareness and participation in input credit scheme: evidence from smallholder rice farmers in Ghana’s North East region

Abstract

Purpose Outgrower scheme as a contractual agreement between farmers and some funding entities has in recent times found proliferation among resource poor farmers in Ghana, especially in northern Ghana. This contractual arrangement, which involves the provision of farm inputs, and in some cases, technical support by the implementing company and the repayment by farmers with portions of their harvest, is often regarded as an effective way to mutually improve the outcomes of both smallholder farmers and outgrower companies. The study aims to analyse. the level of awareness, nature of input package, determinants of participation and intensity of participation in input credit scheme by smallholder rice farmers in the Mamprugu Moagduri District of Ghana’s North East Region, using the Integrated Water Management and Agriculture Development (IWAD) scheme as a case. Design/methodology/approach Using a quantitative analytical approach, the study gathers information from 233 randomly selected smallholder rice farmers consisting of 150 participants and 83 non-participants using a structured questionnaire. Descriptive statistics, as well as the Tobit model, are the methods used in the analysis. Findings The results show that while factors such as age, marital status, number of dependents and farming experience only influenced participation in the scheme, religion, age, sex, number of dependents and farming experience influenced intensity of participation. Originality/value This study calls for the adoption of sustainable approaches by input credit companies in their credit support to smallholder farmers rather than the current ad hoc support during each cropping season.

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

“…It also revealed an improvement in the repayment of IWAD credit among farmers in the northern region of Ghana indicating a high level of creditworthiness and financial responsibility among participating farmers. Wongnaa et al (2022) also found that the ICS has contributed to the adoption of sustainable agricultural practices, such as conservation agriculture and integrated pest management, and has strengthened local institutional capacity and governance. According to the IWAD project report, the ICS has generally been successful as it has resulted in the improvement in crop productivity, reduction in postharvest losses and increase in household incomes in the region (Manda et al, 2018).…”

“…It also revealed an improvement in the repayment of IWAD credit among farmers in the northern region of Ghana indicating a high level of creditworthiness and financial responsibility among participating farmers. Wongnaa et al . (2022) also found that the ICS has contributed to the adoption of sustainable agricultural practices, such as conservation agriculture and integrated pest management, and has strengthened local institutional capacity and governance.…”

“…The Input Credit Scheme (ICS) is an agricultural financing scheme implemented by the Integrated Water Management and Agriculture Development (IWAD) in the northern regions of Ghana. It was launched in 2010 by the government of Ghana with funding from the World Bank with the aim of helping smallholder farmers overcome their limited access to credit and other resources needed to boost their productivity and general welfare (Wongnaa et al ., 2022). The programme provides input credit facilities to farmers in the form of improved seeds, fertilizers and other agrochemicals as well as technical assistance and training with the aim of enhancing agricultural productivity and food security in the region (Abdul-Mukadas, 2022).…”

“…In Ghana, Kuwornu et al (2014)'s study focused solely on the distribution of cash credit to smallholder farmers and the associated restrictions therein, excluding input credit programs. The study by Wongnaa et al (2022) examined the major indicators of awareness and participation of smallholder rice farmers in input-based credit schemes. However, the evidence on the impact of ICS on the productivity and food security of smallholder farmers is lacking in the empirical literature.…”

“…(2014)'s study focused solely on the distribution of cash credit to smallholder farmers and the associated restrictions therein, excluding input credit programs. The study by Wongnaa et al . (2022) examined the major indicators of awareness and participation of smallholder rice farmers in input-based credit schemes.…”