Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana

This study identified the determinants of cocoa farmers’ access to credit in Ghana and estimated the impact of credit access on yield, yield gap, gross income, cost of production, and net income using propensity score matching. A total of 384 cocoa-farming households were included in the analysis. O...

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Autores principales: Boansi, David, Gyasi, Michael, Nuamah, Stephen, Tham-Agyekum, Enoch Kwame, Anyuki, Fred, Frimpong, Richmond, Gbafah, Albert, Gyan, Charles Bosompem
Formato: Journal Article
Lenguaje:Inglés
Publicado: Informa UK Limited 2024
Materias:
Acceso en línea:https://hdl.handle.net/10568/173710
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author Boansi, David
Gyasi, Michael
Nuamah, Stephen
Tham-Agyekum, Enoch Kwame
Anyuki, Fred
Frimpong, Richmond
Gbafah, Albert
Gyan, Charles Bosompem
author_browse Anyuki, Fred
Boansi, David
Frimpong, Richmond
Gbafah, Albert
Gyan, Charles Bosompem
Gyasi, Michael
Nuamah, Stephen
Tham-Agyekum, Enoch Kwame
author_facet Boansi, David
Gyasi, Michael
Nuamah, Stephen
Tham-Agyekum, Enoch Kwame
Anyuki, Fred
Frimpong, Richmond
Gbafah, Albert
Gyan, Charles Bosompem
author_sort Boansi, David
collection Repository of Agricultural Research Outputs (CGSpace)
description This study identified the determinants of cocoa farmers’ access to credit in Ghana and estimated the impact of credit access on yield, yield gap, gross income, cost of production, and net income using propensity score matching. A total of 384 cocoa-farming households were included in the analysis. Only 33.3% of cocoa farmers accessed credit for production and cooperative unions were the main source of credit accessed by the farmers. The study finds significant positive impacts of agricultural credit on yield, gross income, and net income, while yield gap decreases significantly (by 12.2–16.7%) with access to credit. Policy efforts to improve cocoa farmers’ access to credit could therefore enhance the productivity and profitability of cocoa production. It was found that male-headed households with access to credit derive greater benefits than their female counterparts. This may be attributed to differences in resource endowments and marginalization (between male and female heads). In addition, it was found that with access to credit, cultivating more than one cocoa farm could make cocoa production more productive and profitable. This indicates more efficient and profitable use of credit on fragmented farms, than on non-fragmented farms. However, under credit constraint, the practice of land fragmentation could be counterproductive.
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spelling CGSpace1737102025-11-11T19:08:05Z Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana Boansi, David Gyasi, Michael Nuamah, Stephen Tham-Agyekum, Enoch Kwame Anyuki, Fred Frimpong, Richmond Gbafah, Albert Gyan, Charles Bosompem economics performance assessment credit impact propensity score matching microeconomics This study identified the determinants of cocoa farmers’ access to credit in Ghana and estimated the impact of credit access on yield, yield gap, gross income, cost of production, and net income using propensity score matching. A total of 384 cocoa-farming households were included in the analysis. Only 33.3% of cocoa farmers accessed credit for production and cooperative unions were the main source of credit accessed by the farmers. The study finds significant positive impacts of agricultural credit on yield, gross income, and net income, while yield gap decreases significantly (by 12.2–16.7%) with access to credit. Policy efforts to improve cocoa farmers’ access to credit could therefore enhance the productivity and profitability of cocoa production. It was found that male-headed households with access to credit derive greater benefits than their female counterparts. This may be attributed to differences in resource endowments and marginalization (between male and female heads). In addition, it was found that with access to credit, cultivating more than one cocoa farm could make cocoa production more productive and profitable. This indicates more efficient and profitable use of credit on fragmented farms, than on non-fragmented farms. However, under credit constraint, the practice of land fragmentation could be counterproductive. 2024-12-31 2025-03-19T09:44:26Z 2025-03-19T09:44:26Z Journal Article https://hdl.handle.net/10568/173710 en Open Access application/pdf Informa UK Limited Boansi, D.; Gyasi, M.; Nuamah, S.; Tham-Agyekum, E.K.; Anyuki, F.; Frimpong, R.; Gbafah, A.; Gyan, C.B. (2024) Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana. Cogent Economics & Finance 12(1): 2402035. ISSN: 2332-2039
spellingShingle economics
performance assessment
credit
impact
propensity score matching
microeconomics
Boansi, David
Gyasi, Michael
Nuamah, Stephen
Tham-Agyekum, Enoch Kwame
Anyuki, Fred
Frimpong, Richmond
Gbafah, Albert
Gyan, Charles Bosompem
Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana
title Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana
title_full Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana
title_fullStr Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana
title_full_unstemmed Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana
title_short Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana
title_sort impact of agricultural credit on productivity cost and returns from cocoa production in ghana
topic economics
performance assessment
credit
impact
propensity score matching
microeconomics
url https://hdl.handle.net/10568/173710
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