An Economic Analysis of Inorganic Fertiliser Use by Maize Farmers in Guinea Savannah and Transitional Zones of Ghana

Abstract

Fertiliser plays a vital role in maize farming due to the decline in soil fertility, but its main role of improving livelihoods lacks empirical evidence beyond its positive effects on yields. The objective of this study was to determine the effect of inorganic fertiliser use on the commercialisation and profitability of maize farmers in the Guinea Savannah and Transitional zones of Ghana. This study examined the factors that affect the use of inorganic fertiliser among smallholder maize farmers, the effect of inorganic fertiliser use on maize productivity, estimated the effect of inorganic fertiliser use on farm commercialisation and the effect of inorganic fertiliser use on profitability of maize production. The study was conducted in 16 districts from eight regions in Ghana's Guinea Savannah and Transitional zones. Data was collected from 448 randomly selected respondent’s in situ using kobo collect toolbox. The study employed a double hurdle model to identify factors that determine use and intensity of inorganic fertiliser, a linear regression was used to examine the effects of inorganic fertiliser use on maize productivity, a Tobit model was used to estimate the effect of inorganic fertiliser use on the Household Commercialisation Index and the inorganic fertiliser use on profitability was estimated using the Value Cost Ratio. The probability of farmers' decision to jointly use inorganic fertiliser and intensity of inorganic application is high among farmers in the Guinea Savannah zone. The basal application of fertiliser integrated with improved seeds enhances maize productivity. The use of inorganic fertilisers raises farmers’ levels of commercialisation which suggests that using inorganic fertiliser can be an important step in raising maize yield over the level needed for subsistence. The level of profitability among inorganic fertiliser users is low. Maize commercialisation and production credit increase maize profitability. The study recommends that, to improve maize profitability from inorganic fertiliser use, farmers must produce beyond the subsistence level to a more commercialised level.