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

Abstract

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. 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. 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. 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.