Climate Smart Production, Gross Income, and Downstream Risk Characterization of Rice Farmers in Ghana

Abstract

Purpose - Climate smart production is a potential solution to the negative effects of the changing climatic conditions on agricultural production systems in Africa in general, and particularly in Ghana.

Design/methodology/approach - In this study, we employed a Multinomial Treatment Effect (MTE) regression model, using primary data collected from 543 rice farmers in Ghana, to examine the drivers of single and joint adoption of selected Climate Smart Agriculture (CSA) practices (i.e., improved rice varieties and irrigation). The study further explored the implications of the adoption of CSA practices on gross income and reduction of risk (skewness of rice yield) faced by rice farmers.

Findings - The empirical results show that education, experience, and extension service significantly influenced joint adoption of irrigation and improved rice varieties positively; while livestock ownership, farm size, and social capital significantly influenced joint adoption negatively.  In addition, single adoption of improved rice varieties and irrigation as well as joint adoption significantly influenced rice farmers’ income and risk exposure positively. Education, rice commercialization, experience, and social capital also bore significant positive relationships with income and rice farmers’ risk exposure, while quantity of fertilizer applied per acre and farm size significantly influenced income and rice farmers’ risk exposure negatively.

Research limitations/implications - There exists a pool of literature on climate smart agriculture technology adoption among rice farmers. However, these studies do not highlight the nexus between the adoption of climate smart technology and its implications on gross income and risk characterization of rice farmers.

Practical implications - The adoption of climate smart production mechanisms like the use of improved rice varieties and irrigation should be encouraged among rice farmers since they have the potential to increase gross income while reducing farmers’ exposure to risk in the face of climate change.

Social implications - Policymakers and project implementers should give priority to socioeconomic and institutional factors that promote the adoption of CSA practices among rice farmers in programming of development interventions.

Originality/value - The study examined the factors that drive rice farmers to adopt improved rice varieties and irrigation, as well as joint adoption of improved rice varieties + irrigation in northern Ghana.