The Economic Impact of Public Investments in Maize Research and Extension in Ghana, 1979-97.

Abstract

Maize is the most important cereal in Ghana grown by some 1.74 million households and contributing 67 billion cedis or 14 million dollars to Ghana as at the 1991-92 crop season. Maize is eaten in various forms in most homes. In the late seventies, maize production declined. The Ghana Grains Development Project was established in 1979 to provide research and extension services for maize production in Ghana. Since the inception of the project, maize production has been increasing. These increases in the past two decades have been attributed to the availability and adoption of GGDP-generated improved maize technologies. This study measures the degree to which maize recommendations are taken up by fanners and determines the factors driving the adoption process. It assesses the economics of maize recommendations and analyzes the returns to public investments in Ghana’s research and extension activities for maize between 1979 and 1997. The study also makes suggestions for future maize research and extension work in Ghana. It is observed that fifty-four percent of the total area under maize production is cultivated to improved maize varieties and 55 percent of the area is row planted with maize. Only 26 percent of the area are fertilized. Furthermore, the main factors driving adoption of improved varieties are extension contact, farming maize in the coastal savannah zone, transition zone, Guinea Savannah zone, gender and total maize area planted. The financial rate of return on investment in maize research and extension is estimated between 50 and 79 percent and the economic rate of return is 25 to 33 percent. This is a clear indication that maize research and extension activities between 1979 and 1997 have been profitable and have contributed to national food security. This has a number of policy implications for research, extension, input delivery system, agricultural policy makers and donors. Funding, germplasm improvement, crop management recommendations, need for speeding up fertilizer technology dissemination and efficient input supply systems are some of the policy issues needing attention.