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Utilization and Profitability of Tractor Services for Maize Farming in Ejura-Sekyedumase Municipality, Ghana

Authors :
Nimoh, Fred
Yevu, Innocent Yao
Essampong, Attah-Nyame
Addo, Asante Emmanuel
Kevin, Addai
Publication Year :
2024

Abstract

Maize farming is a major livelihood activity for many farmers in Ghana. Unfortunately, farmers usually do not obtain the expected returns on their investment due to reliance on rudimentary, labor-intensive, and inefficient methods of production. Using cross-sectional data from 359 maize farmers, this study investigates the profitability and determinants of the use of tractor services for maize production in Ejura-Sekyedumase, Ashanti Region of Ghana. Results from descriptive and profitability analyses reveal that tractor services such as ploughing and shelling are widely used, but their profitability varies significantly among farmers. Key factors influencing profitability include farm size, fertilizer quantity applied, and farmer experience. Results from a multivariate probit analysis also showed that farming experience, fertilizer quantity, and profit per acre have a positive influence on tractor service use for shelling, while household size, farm size, and FBO have a negative influence. Farming experience, fertilizer quantity, and profit per acre positively influence tractor service use for ploughing, while farm size has a negative influence. A t-test result reveals a statistically significant difference in profit between farmers who use tractor services and those who do not. Specifically, farmers who utilize tractor services on their maize farm had a return to cost of 9 percent more than those who do not (p-value < 0.05). The Kendall's result showed a moderate agreement among the maize farmers (first ranked being financial issues) in their ability to access/utilize tractor services on their farm.

Subjects

Subjects :
Economics - Econometrics

Details

Database :
arXiv
Publication Type :
Report
Accession number :
edsarx.2411.15797
Document Type :
Working Paper