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INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE sustainable solutions for ending hunger and poverty Ghana Strategy Support Program Targeting smallholders for agricultural growth in Ghana Jordan Chamberlin 16 November 2007 Accra, Ghana Pro-poor agricultural growth • Ghana’s current development objectives place a great deal of emphasis on broad-based, pro-poor agricultural growth • Emphasis on • expansion of high-value & export-oriented cash crops • improved production of food crops • Transformation of smallholder agriculture Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 2 Who are Ghanaian smallholders? • Data on small farms & staple agriculture • Ghana Living Standards Survey 2005/6 • 8687 households • regional & ecological zone inferences • Production data • SRID, Ministry of Agriculture: district data 19922006 • Field visits to maize producers (March 2007) Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 3 Smallholders dominate agriculture • Two thirds of all farms less than 3 ha forest 3.1 ha Forest, avg savannah 4.0 ha Savanna, avg .2 .4 .6 coastal2.3 ha Coast, avg 0 Ghana Strategy Support Program 0 5 10 15 20 0 5 INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 10 15 holding size (ha) 20 0 5 10 15 Page 4 20 Smallholder crop portfolios • Number of crops varies with farm size • < 2 ha: average of 3.1 crops • >=5 ha: average of 5.0 crops • Maize & cassava most important in smaller farms • The only crops produced by 12% of households (median holding size 0.8 ha) Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 5 7.0 mean number of crops Coastal Forest 6.0 Savanna 5.0 4.0 3.0 2.0 < 0.5 ha 0.5-1 ha 1-2 ha 2-3 ha 3-4 ha 4-5 ha > 5 ha land holding size median # crops Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 6 Smallholders do engage markets • Less variation by holding size • Commercialization rates lowest for smallest farms • fewer marketed crops • less likely to sell the crops they do produce • More variation by geography % of maize farmers who sell their produce holdings < 0.5 ha 0.5-1 ha 1-2 ha 2-3 ha 3-4 ha 4-5 ha > 5 ha Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE coast 57% 65% 69% 68% 62% 72% 57% forest savanna 53% 42% 60% 31% 64% 38% 62% 48% 58% 57% 70% 53% 56% 61% Page 7 Upper East Upper East Upper West Upper West Northern Northern Brong Ahafo Brong Ahafo Volta Volta Ashanti Ashanti Eastern Eastern Greater Accra Greater Accra Western Western Central Central % >6 0 0% 50 -6 0% 40 -5 0% 30 -4 % <3 0 % % of producers who sell >6 0 0% 50 -6 0% -5 40 -4 30 < 30 % 0% % of hhs who produce % of farmers using purchased fertilizer • Yields are growing but still low • Fertilizer & other input use is driven by geography • Anecdotal evidence that fertilizers are freq. used to compensate for land degradation rather than to maximize yields Farm size ≠ poverty Per capita consumption & hh landholding • Relationship between income and holdings is weak and variable across geographical space • Positive in forest/transition • Negative in coast • Agrees with anecdotal evidence that land is not the chief limitation, but rather access to labor and other resources… Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 10 Characterizing smallholders • Holdings are small, but size does not fully explain farmer behavior • Incomes and income sources vary widely • Yields are low; input use is low • Market participation is variable but staple markets are widely engaged in (esp maize) Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 11 Characterizing smallholders • Geography is more important than holding size for capturing many smallholder characteristics, including input use and many aspects of market participation • What are the key constraints faced by smallholders and how do the conditions under which they produce modify those constraints? Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 12 Constraints faced by smallholders • Production technologies are not accessible • factor market constraints: labor, mechanized traction • Risk of production failure (rainfall variability) • Uncertainty about market opportunities & prices • Poor returns on productivity-related costs Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 13 High transactions costs & poor access • For example, consider these costs along the maize chain from farm gate to Accra retail – equivalent to 80% of producer price for a producer near Techiman Source: Personal communication from Natural Resources Institute, 2006, as published in World Bank 2007: 119 Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 14 High transactions costs & poor access distance from market < 2 hours of town Accra 2-4 hours of town Accra 4-6 hours of town Accra 6-8 hours of town Accra > 8 hours of town Accra total rural poor population n % n % 574,281 7% 4,215,670 22% 1,126,430 14% 2,917,100 15% 958,922 12% 3,719,900 19% 978,199 12% 2,193,920 11% 4,557,150 56% 6,185,420 32% 8,194,982 100% 19,232,010 100% land area sq.km. % 8,325 3% 18,061 8% 20,731 9% 26,026 11% 165,329 69% 238,472 100% • Much of the production base and many of the rural poor are located in areas with poor access Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 15 ") ") ") ") ") ") ") ") ") ") • The access story has many overlapping dimensions ") ") ") ") ") ") ") ") ") ") ") ") ") ") 4 0. 0 3 0. 0 2 0. 0 0. 0 1 ") 0 ") ") share of total area ") ") ") ") ") )" ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") )" ") ") )" ") )"") ") ") ") ") ") ") ") ") ")" ) ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") rural banks road density 0. 5 ") ") ")") > ") ") ") 0. 5 ") ") )" ") 0. 4 ") ") ") ")") 0. 3 ") ") ") ") ") ") 0. 2 ") ") ") ") 0. 1 ") ") < ") ") 0. 0 ") ") Rainfall Rainfall variability # of domain H-acc/H-dens H-acc/L-dens L-acc/H-dens L-acc/L-dens districts 18 46 0 45 avg total cereal production area yield area yield production growth growth growth contribution to contribution to (MT) 2003-2005 1998-2005 1998-2005 1998-2005 growth 98-05 growth 98-05 162,668 9% -3% 12% -32% 132% 514,856 28% 26% 2% 94% 6% 0 0% 0% 0% 0% 0% 1,092,181 10% 11% 0% 102% -2% domain (access | density) High | High High | Low Low | High Low | Low n 19 29 0 39 Targeting smallholders • The challenges faced by different types of farms are heightened by production and market environments • Much production takes place under conditions of high costs, poor information, risk • many smallholders do not perceive benefits of productivity investments Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 19 Targeting smallholders • Strengthening food markets (maize) is one of the most important means of engaging the largest portion of smallholders, and thereby increasing productivity and income • • • • • Development of more profitable technologies More efficient and competitive input markets More efficient output marketing chains Market information, weights and measures Risk mitigation • Continue to explore alternatives • e.g. organic production; high-value non-perishables Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 20 Smallholders less likely to use some inputs % holders using purchased inputs * relative to average share for producers with smallest holdings Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 22 Holding size may not well explain food crop marketing Share of production sold Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Page 23