Modelling Optimal Resource Allocation Patterns For Crop Farmers In The Karaga District Of Ghana

Abstract

This study sought to investigate the potential of optimal resource allocation patterns in ensuring food security and increase farm incomes. The study identified various crop enterprise mixes that farmers engaged in and also determined the factors that influence the number of crop enterprises that farmers grew. The study further determined the optimal farm plans and the trade-off between expected returns of plans. The study randomly selected 398 farm households in fourteen communities in the Karaga District of Ghana. Interviews conducted showed that farmers were involved in cereal-legume cropping system. The study categorised farmers into four groups based on their farm sizes. Farmers who cultivated on farmlands 4 ha and above are regarded as large farms, and those who crop on farmlands between 2 ha to 3.99 ha are considered medium farms, produced maize, soya bean and groundnut. Farmers cultivating on small land sizes between 1 ha and 2 ha grew maize and either groundnut and soya bean. Another category of farmers was marginal, who produced on farmlands below 1 ha grew maize or soya bean or groundnut. The Poisson regression model was used to identify the factors that determine the number of crops enterprises farmers operate revealed that land and distance to market have a positive influence on the number of crops farmers grow. The Target Minimisation of Total Absolute Deviation (MOTAD) analysis results from all farm groups revealed that both the profit maximisation plan and the risk efficient plan(s) were more remunerative than the farmers’ existing plan. The farmers’ existing plan and the profit maximisation plan had higher standard deviations but the risk-efficient plan(s) had a smaller coefficient of variation(s). The two-tail test revealed a statistically significant difference between the expected returns of various plans. Farm management and efficient resource allocation programmes should be developed by agricultural departments other agricultural development partners and farmers should be sensitised on the importance of efficient resource use.