Economic assessment of determinants of smallholder cashew farmer

Abstract

The study examined the factors that determine the productivity and profitability of smallholder cashew farmers in the Bono region of Ghana. A total respondents of 222 smallholder farmers participated in the study. Questionnaire was utilized as the key instruments used for the data collection during the study and data was analysed using Stata computer software version 18.0 as the main statistical computing software for the study. The study explored the determinants of cashew production and profitability of the smallholder cashew producers in the Bono Region. Findings from the study demonstrate that, farm size, extension services, and physical capital constitute the predominant factors that contribute to smallholder cashew farmer productivity. Improvement in farm size, access to fertilizer and intensification of extension agents visits to these small holder had a greater potential to increase cashew nut productivity. Again, smallholder cashew farmers produce at a rational stage with efficient input combinations. The positive return to scale value less than one implies that, any additional increase in factor inputs will increases output produced. Their factor inputs combined are inelastic as the coefficient is less than unity. Based on the findings from the study, it can be concluded that, the cashew production among smallholder farmers is a profitable venture. Furthermore, factors such as pricing of cashew nuts, access to extension services and farm size have positive influence on profitability of the farmers. Farmers who have access to extension services are able to improve their profitability. Therefore the study recommends that, the smallholders should be given enough fertilizers at a subsidized cost to be able to improve their production outputs. Cashew buyers and other NGOs can supply the smallholder cashew farmers with fertilizers for free or at a very subsidies fees. The government program of planting for food and jobs under the ministry of food and agriculture should consider the cashew farming as priority areas so they that more attention can be given to the cashew industry players such as the smallholder farmers