IMPACT OF CROP PRODUCTIVITY ON POVERTY AMONG FARM HOUSEHOLDS IN GHANA

Boahen  Atta Oppong; Edward  E. Onumah; Ramatu  M. Al-Hassan; Akwasi  Mensah-Bonsu

doi:10.7251/ACE2135077A

Authors

Boahen Atta Oppong Department of Agricultural Economics & Agribusiness University of Ghana, Legon https://orcid.org/0000-0001-8376-373X
Edward E. Onumah Department of Agricultural Economics & Agribusiness University of Ghana, Legon https://orcid.org/0000-0001-7307-1270
Ramatu M. Al-Hassan Department of Agricultural Economics & Agribusiness University of Ghana, Legon https://orcid.org/0000-0002-3704-0060
Akwasi Mensah-Bonsu Department of Agricultural Economics & Agribusiness University of Ghana, Legon https://orcid.org/0000-0002-7109-2868

DOI:

https://doi.org/10.7251/ACE2135077A

Keywords:

policy, technology, productivity, income, welfare, agroecology

Abstract

Ghana Poverty Reduction Strategy I & II sought to increase crop productivity to reduce high poverty incidence in farm sector, but the magnitude of impact of the productivity on poverty is not present in all agro-ecological zones in Ghana. The aim of the study is to estimate poverty headcount ratio, poverty gap and poverty severity, and link crop productivity to poverty according to agroecology subject to a two-step instrumental variable regression technique using Pseudo Panel data from the Ghana Living Standards Survey (GLSS rounds 5 & 6). Farmers’ poverty headcount ratio, poverty gap, and poverty severity reduced from 57%, 25%, and 14% in 2005 to 37%, 14%, and 7% in 2013 respectively. The result further indicates that 1% growth in crop productivity reduces the probability of poverty headcount ratio, poverty gap and poverty severity by 0.28%, 0.38% and 0.75% respectively in all agro-ecological zones. Additionally, the paper shows that education, livestock and remittance income reduces poverty, while household size and great distance to access water increase poverty differently from agro-ecology. The study recommends rapid crop productivity growth by prioritizing technology adoption and institutional coordination to suit agro-ecological conditions among the poor, illiterate and non-partisan.

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