Allocative efficiency, employment and rice production risk: An analysis of small holder paddy farms in the Upper East Region of Ghana

Abstract

A production function analysis was used to investigate resource use efficiency by smallholder rice farmers in the Upper East region of Ghana and its impact on employment. Data was collected from a random sample of 440 farmers during the 2001/2002 cropping seasons. Empirical results show that smallholder rice farmers are allocatively inefficient in the use of labour, bullock and fertilizer. Non-irrigators created more job opportunities in the study area than irrigators. Smallholder farmers have developed coping mechanisms in order to minimize the negative impact of rice production risks. A programme to accelerate the provision of education and credit is needed. The education programme should include both formal and non-formal elements. This is important for the improvement of farmers' abilities to retrieve and process information regarding modern agricultural technology. Effective farmer-centered technical training programmes are needed to build the capacities of small-scale farmers in resource mobilization and use. Research is also needed in areas of reducing rice production risks.

Ghana Journal of Development Studies Vol.1(2) 2004: 142-163