Modelling Farmers Investment in Agrochemicals: The Experience of Smallholder Cocoa Farmers in Ghana

Abstract

The study analyzes the effects of the determinants of farmer’s adoption of and investment in
agrochemicals by collecting primary data from 156 sampled cocoa farmers in the
Sefwi-Wiawso Municipality of Ghana. Descriptive statistical technique was employed to
analyze demographic and farm-specific characteristics as well as the adoption rate and
expenditure on agrochemicals. The findings highlighted the fact that, though a large
proportion of farmers in the study area use agrochemicals, the intensity and amount spent to
purchase these inputs are quite low. The Tobit regression model was used to identify and
quantify the effects of the determinants of farmer’s investment in agrochemicals. The results
generally indicate that the sex of the farmer, age of the farmer, household size, educational
attainment, mean age of cocoa farms, farm size and farmers previous output are all important
variables in explaining farmers decision to invest in agrochemicals. The paper concludes by
recommending that strategic policies orienting towards improving the adoption rate as well as
targeting farmers who are less likely to invest in agrochemicals is a pressing issue.