Economic problems facing small and medium scale farms in Ghana

B.Ed. Francis Prempeh, BSc

Diplomová práce

Abstract:

Scope of the study The study will be conducted in the Northern and middle belt in Ghana. The study focus is largely on the farming areas in the country. The food baskets of the country are largely in Northern Ghana and the middle belt in the country. The study will cover the five (5) northern regions of Ghana and the Brong Ahafo region of Ghana. The study will sample small holder and medium holder farmers in the study regions. Problem statement Small and medium holder farmers form the backbone of Ghana’s economy and most economies in sub-Saharan Africa and Asia. However, the development of these contributions of the small and medium scale farmers in Ghana, there are still several issues hindering or facing these farmers that prevents and hinder the growth of these farms into commercial and large scale farms. The main aim of the study is to assess the economic challenges of small and medium-scale farmers in Ghana. Despite the recent transition of Ghana into an industry and service sectors-led economy, agriculture still plays and holds a key role in the economy, contributing to about 30 percent of the country’s GDP and employing about 50 percent of the country’s population (De Pinto et al 2012). The World Bank (2021) report noted that in Ghana, about one-fifth of the country’s total GDP is from agricultural productivity, and the sector employs more than half of the country's working population. Based on the above-noted statistics, it is noted that subsistence farming and peasant agriculture are some of the most important sectors of the economy in Ghana, just like the other service delivery sectors. However, the farming activities of both subsistence or small-scale farmers and medium-scale farmers face several critical challenges, and the key among the challenges are economic challenges. In view of this, the study seeks to assess, evaluate and examine the following research objectives. Objectives: To understand the economic challenges faced by small and medium-scale farmers in Ghana, the study is premised on these objectives: 1)Investigate the challenges faced by small and medium-scale farmers. 2)Examine and evaluate the economic problems faced by medium and small-scale farmers in Ghana. 3)Examine the sustainability of the farming operations of small and medium-scale farmers. 4)Assess other Income Generation Activities and their impact on the household income of small and medium-scale farmers in Ghana. Research questions 1)What are the key challenges faced by small and medium-scale farmers in Ghana? 2)How do economic problems faced by small and medium-scale farmers affect their production and productivity? 3)How sustainable are the farming activities and operations of small and medium-scale farmers in Ghana? 4)How can other Income Generation Activities (IGA) affect the household income streams and livelihoods of small and medium scale farmers? Methodology This study employed a convergent/parallel mixed methods design (Creswell, 2012) to conduct the study in the study areas in Ghana. The focus was on small and medium holder farmers, the ministry of food and agriculture, Ghana Statistical Service (GSS). Using this paradigm, the study will simultaneously gather qualitative (QUAL) and quantitative (QUAN) data to analyze the study objectives. This approach will allow the researcher to compare different types of data to gain a more comprehensive understanding of the research problem. Greene (1998) identified complementarity, triangulation, initiation, development, and expansion as crucial factors when utilizing a mixed methods approach. In this study, complementarity, development, and triangulation are key arguments in favor of the mixed methods approach. Accordingly, the study will triangulate and integrate the results of both the QUAN and QUAL stages using various data sources, including secondary desk research, interviews, and surveys. The study will be conducted using a mixed-methods research methodology. The study

Abstract:

will combine both qualitative and quantitative approaches to interrogate the research objectives. The mixed method used will be premised on the sequential exploratory method to understand the economic problems faced by small and medium-scale farmers in Ghana. The data for this study will be both primary (generated from the field/questionnaire) and secondary data (from secondary sources: articles, books, journals, papers, and theories), and the study subjects will include small and medium-scale farmers, the Ministry of Food and Agriculture and the Ghana Statistical Service (GSS). The quantitative data will be collected through surveys using Kobo Collect and Google Forms, whereas the qualitative data will be collected using a semi-structured interview guide with the responses transcribed verbatim. The sampling techniques used will be purposive sampling to conduct the conductive study, and a simple random sample will be used to identify the study respondents for the quantitative study. The study data analysis will be done using tables, graphs and charts and explained using related theories and study findings. The qualitative data will be analyzed using thematic/content analysis. Summary of findings under objective one (1): The challenges of small and medium scale farmers in Ghana include; Economic problems Infrastructure challenges High cost of farm inputs Market linkage issues Factors accounting for low expansion of farms/production include; Financial constraints Lack of credit facilities Lack of fertile lands Low access to farm equipments Cultural factors Summary of findings under objective two (2): The economic problems that are faced by the small and medium scale farmers in Ghana, according to the study are; Poverty Over reliance on farm produce Single income sources Household debt Summary of findings under objective three (3): The factors that contribute to the inefficiencies of most farms have been identified as the factors contributing to the sustainability of small and medium scale farms. The factors identified include; Small land size Limited resources available to the farmers leading to efficient planning The efficiency of their management and farm activities due to the small land sizes Conclusion In conclusion, it is important noting that, the study covered diverse areas including the Northern, upper east, upper west, north east, savannah, and middle belt; Brong Ahafo regions. The reason for this diversification was the spread of small and medium scale farmers across these areas. This was done intentionally to identify challenges peculiar with the farmers in these areas. However, it is worth noting as well that the challenges these small and medium scale farmers faced are relative and also similar. The only outstanding issues identified in the northern zone and the middle belt was the difference in rainfall pattern. While the Northern zone including northern, upper east, upper west, north east and savannah regions had only one raining season, which was characterized by inconsistent rainfall patterns, the middle belt had two planting seasons and a rather better rainfall pattern which aided the small and medium farmers in these areas to farm all year-round. However issues of low farming equipment availability remains a major hindrance and challenge to the farming activities of farmers located in this area. While there is so much potential in agriculture especially in large scale and commercial farming and diversification of agricultural activities, small and medium scale farmers are rather limited and hence are unable to derive the full benefits from farming. The small and medium scale farmers are often faced with challenges such as economic problems, infrastructure issues, high cost of farm inputs, low access to credits and poor market linkages. They are faced with peculiar economic issues such as; Poverty, over reliance on farm produce, single income sources and household debts.

Keywords

Economic Impact, Small and Medium Scale (SMS), Farming Activities, Middle Income Country, Gross Domestic Product (GDP)

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 2. 4. 2025

Obhajoba závěrečné práce

• Vedoucí: doc. Ing. Vladimír Krepl, CSc.
• Oponent: Finney Faithful, externi

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program:
European Agrarian Diplomacy