SUSTAINED NO-TILL ADOPTION IN THE AGRO-ECOSYSTEMS OF GHANA: A FRAMEWORK

136 Pages·2016·1.52 MB·English

by  Kwadwo Amponsah

SUSTAINED NO-TILL ADOPTION IN THE AGRO-ECOSYSTEMS OF
GHANA: A FRAMEWORK FOR FINANCIAL AND RISK MANAGEMENT
OPTIONS
A Thesis
by
KWADWO AMPONSAH
Submitted to the Office of Graduate and Professional Studies of
Texas A&M University
in partial fulfillment of the requirements for the degree of
MASTER OF SCIENCE
Chair of Committee, Frederick Boadu
Co-chair of Committee, Edwin Price
Committee Member, Chanda Elbert
Head of Department, Parr Rosson
May 2017
Major Subject: Agricultural Economics
Copyright 2017 Copyright Kwadwo Amponsah
ABSTRACT

The conservation agricultural practice of no-till is known to improve soil
physical and chemical properties through enriching soil organic matter, improving
soil moisture conservation, labor saving and the ability to sustain the productivity
of land for a long period of time. No-till is considered one practice for sustainable
food production in Sub- Saharan African and the rest of the world to meet the food
demands of the growing population. Farmers are encouraged to adopt the no-till
technology as scientific research has proven the comparative soil improvement
potential of the system. However, there is little knowledge on the socio-economic
aspects of no-till practice in terms of the profitability of the practice and the
financial risks associated with no-till. This paper uses enterprise farm budgets to
analyze the labor use, cost and profitability of no-till and conventional tillage in
four agro-ecological zones in Ghana and uses these budgets as analytical tools to
help farmers manage risk.
Two data sets were used in the study. The first data set was used in building
budget models and was based on the daily farm activities of 24 farms located in the
4 agro-ecological zones. Three no-till farmers and three conventional farmers were
selected at random from the ecological zones. The second data set is an economic-
anthropological survey to track farmers’ farming histories and views on the
sustainability of the small farm in Ghana giving the aging population and the lack
of youth interest in agriculture as a profession.

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The budgets show labor need and cost for no-till and conventional tillage
varying in different ecological zones and with different farm activities. Yields of
cereals were higher for no-till in all ecological zones. Profits realized from no-till
farmers who practiced mono-cropping with maize were higher than conventional
farmers. However, mixed cropping was more profitable under each system,
particularly when tomatoes were grown. Farm produce prices were lower in the
bumper seasons and higher in the lean seasons. The increase in energy prices and
removal of subsidies on farm inputs reduced farm profits.
The budgets should be considered as policy and risk management tools in
agricultural research institutions such as Ministry of Food and Agriculture Ghana
(MOFA) and the No-till Center to help farmers make better decisions in managing
risk to increase their profits.

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ACKNOWLEDGEMENTS
I would like to thank my committee chair, Dr. Fred Boadu, and my
committee members, Dr. Edwin Price, and Dr. Chanda Elbert for their guidance
and support throughout the course of this research.
Thanks also go to Mr. Kofi Boa, Director of the Center for No-till
Agriculture for his assistance in the collection of data and supply of other valuable
information on no-till agriculture. Again I would like to show my sincere gratitude
to the extension officers in the various districts who offered their time and effort in
collecting and sending of the data. A big thank you also goes to the 24 farmers
across the ecological zones who willingly provided the necessary information
needed for the study.
Thanks also go to my friends and colleagues and the department faculty and
staff for making my stay at Texas A&M University a great experience. I also want
to extend my gratitude to the Center for Conflict and Development, which provided
the assistantship and funding for the study.
Finally, thanks to my mother and my family for their encouragement and love.
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NOMENCLATURE
APPL. Application
AVC Average Variable Cost
CSO Civil Society Organization
DAES Directorate of Agricultural Extension
FAO Food and Agriculture Organization
GDP Gross Domestic Product
GHC Ghana Cedi
GSS Ghana Statistical Service
HR Hour
MOFA Ministry of Food and Agriculture
No. Number
SSA Sub-Saharan Africa
TC Total Cost
TR Total Revenue
USDA United States Department of Agriculture
QTY Quantity
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TABLE OF CONTENTS
Page
ABSTRACT .......................................................................................................... ii
ACKNOWLEDGEMENTS .................................................................................. iv
NOMENCLATURE .............................................................................................. v
TABLE OF CONTENTS ...................................................................................... vi
LIST OF FIGURES ............................................................................................ viii
LIST OF TABLES ................................................................................................. x
1. INTRODUCTION AND LITERATURE REVIEW .......................................... 1
Literature Review............................................................................................... 4
Risk Management in Farming......................................................................... 4
Farm Budgets ................................................................................................. 5
Reasons for Farm Budgeting .......................................................................... 8
Cropping Systems in Ghana ........................................................................... 9
What is No-till? ............................................................................................ 12
Why the Need for No-till .............................................................................. 13
Economics of No-till .................................................................................... 13
Role of the Extension System ....................................................................... 19
2. STUDY AREA, SURVEY, AND DESCRIPTIVE STATISTICS ..................... 21
Study Area ....................................................................................................... 21
Atwima Nwabiagya (Forest Zone) ................................................................ 23
Ejura Sekyedumasi (Transition Zone)........................................................... 24
Ga West District (Coastal Savannah) ............................................................ 25
East Mamprusi (Guinea Savannah) ............................................................... 26
Survey ............................................................................................................. 28
Descriptive Statistics ........................................................................................ 29
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3. METHODOLOGY .......................................................................................... 35
Method for Building the 72 Crop Budgets ........................................................ 35
Financial Futures Budget Building ................................................................... 37
4. RESULTS AND DISCUSSION ....................................................................... 40
Anthropological Survey Report ........................................................................ 40
Labor Requirement and Cost of Labor for No-till and Convectional Till .......... 43
Forest Zone .................................................................................................. 43
Guinea Savannah Zone ................................................................................. 46
Transition Zone ............................................................................................ 49
Coastal Savannah Zone ................................................................................ 52
Labor Cost per Hour Comparison ..................................................................... 54
Crop Yields and Average Prices of Farm Produce ............................................ 58
Profitability of Farming Systems and Alternative Crop Mix ………………….. 61
Input Costs and Their Effect on Profits............................................................ 64

Energy Prices and Their Effects on Farm Profits .............................................. 66
5. DISCUSSION AND CONCLUSION ............................................................... 68
Discussion........................................................................................................ 68
Conclusion ....................................................................................................... 73
Study Limitations and Future Research ............................................................ 76
REFERENCES .................................................................................................... 77
APPENDIX A ..................................................................................................... 86
APPENDIX B ...................................................................................................... 90
APPENDIX C .................................................................................................... 121
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LIST OF FIGURES

Page
Figure 1. Agro-ecological Map of Ghana ............................................................. 21
Figure 2. Average Total Labor Hours for each Cropping Season (Forest Zone) .... 44

Figure 3. Labor Requirement for Farming Activities per Acre (Forest Zone) ........ 44

Figure 4. Average Total Labor Cost Per Acre (Forest Zone) ................................. 45
Figure 5. Average Labor Cost for Major Farming Activities (Forest Zone)........... 46
Figure 6. Average Total Labor Hours for each Cropping Season
(Guinea Savannah) ....................................................................................... 47

Figure 7. Labor Requirement for Farming Activities per Acre
(Guinea Savannah) ....................................................................................... 47

Figure 8. Average Total Labor Cost Per Acre (Guinea Savannah) ........................ 48
Figure 9. Average Labor Cost for Major Activities (Guinea Savannah) ................ 48
Figure 10. Average Total Labor Hours for each Cropping Season
(Transition Zone) ......................................................................................... 50

Figure 11. Labor Requirement for Farming Activities Per Acre
(Transition Zone) ......................................................................................... 50

Figure 12. Average Total Cost Per Acre (Transition Zone) ................................... 51
Figure 13. Average Labor Cost for Major Farming Activities (Transition Zone) .. 51

Figure 14. Average Total Labor Hours for each Cropping Season
(Coastal Savannah)....................................................................................... 52

Figure 15.Labor Requirement for Farming Activities per Acre
(Coastal Savannah)....................................................................................... 53

Figure 16. Average Total Labor Cost Per Acre (Coastal Savannah) ...................... 54

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Figure 17. Average Labor Cost for Major Farming Activities
(Coastal Savannah)....................................................................................... 54

Figure 18. Average Labor Cost per Hour Comparison for all Ecological Zones .... 55

Figure 19.Average Labor Cost per Hour for Major Farming Activities ................. 57
Figure 20. Average Yield of Maize per Acre ........................................................ 59
Figure 21. Average Millet Yields (Guinea Savannah)........................................... 59
Figure 22. Average Price of Maize ....................................................................... 61
Figure 23. Profit per Acre (Forest Zone) .............................................................. 62
Figure 24. Profits per Acre (Guinea Savannah) .................................................... 62
Figure 25. Profits per Acre (Coastal Savannah) .................................................... 63
Figure 26. Profits per Acre (Transition Zone) ....................................................... 63
Figure 27. Average Total Labor Hours for all Ecological Zones ........................... 68

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LIST OF TABLES

Page
Table 1. Grain Yield of Maize as Influence by Tillage and Mulch Treatments ...... 17
Table 2. Descriptive Summary of Study Areas ..................................................... 28
Table 3. Age and Gender of Farmers .................................................................... 30
Table 4. Educational Levels of Farmers ............................................................... 31
Table 5. Average Household Size and Farm Size (Acre) ...................................... 32
Table 6. Type of Crops Grown ............................................................................. 33
Table 7. Aggregate Average Cost of Labor per Hour in each Ecological Zone ..... 55
Table 8. Average Tomato Yields per Acre ........................................................... 60
Table 9. Average Price of Selected Farm Inputs ................................................... 65

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