Household-specific food price differentials and high-value crop production in rural Ghana

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Date

2015-11

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Food Policy

Abstract

Using panel data from Ghana we have examined the relationship between household-specific producer–consumer price differentials and rural household cropland allocation between food and high-value crops. We test the hypothesis that cereal price bands induce a shift of resources away from high-value crop production, making smallholders appear unresponsive to price incentives. Our results lend support to this hypothesis, implying that a policy aiming at increasing farmers’ income through high-value crop production may fail if hard and soft infrastructure does not improve in rural areas, and if staple crop productivity does not increase significantly.

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Keywords

Ghana, Household-specific food price, high-value crop, staple crop

Citation

Rational But Poor? An Explanation for Rural Economic Livelihood Strategy Article Nov 2017J Agr Econ

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