CREDIT ACCESS, IMPROVED TECHNOLOGY ADOPTION AND TECHNICAL EFFICIENCY OF MAIZE FARMERS IN THE UPPER EAST REGION, GHANA

Abstract

Increasing the adoption of improved technologies through the provision of adequate credit is necessary to resolve the problem of low crop productivity due to the constant decline of soil fertility and climate change impact on agriculture. The study examines access to credit, adoption of improved technologies and adoption effect on maize technical efficiency of 240 farmers in the Upper East Region, Ghana. A multi-stage sampling approach was used to select the farmers. Face-to-face interviews were carried out to collect primary data using semi-structured questionnaires. Using the multivariate probit model, the results found that row-line technology (RLT), legumemaize intercropping technology (LMIT) and soil/stone bunding technology (SBT) are adopted together by farmers. Adoption of improved maize technologies was significantly affected by sex, age, education, farm size, farm location, distance to local input-shop, extension contacts, FBO membership and access to training on improved farming methods. The results of Poisson regression with endogenous treatment showed that farmers who accessed credit were more likely to increase the adoption of improved technologies. The stochastic frontier production estimation results showed that adoption of more improved technologies, farm size, inorganic fertilizer and seeds were associated with higher maize output. Adopting more improved technologies on the other hand reduces technical efficiency of maize farmers. The mean maize technical efficiency was 0.75, which meant that 25% of maize output was lost due to technical inefficiency. High cost of improved technologies was ranked as the most serious constraint facing farmers in the adoption of improved technologies in maize production. The study suggests the provision of credit facilities to farmers to increase the adoption of improved technologies. Moreover, policies should be targeted at the factors that affect maize production and technical efficiency of farmers.