An Evaluation of Challenges Facing Smallholders in Ghana: A Case Study for the Aowin Suaman District

Abstract

The majority of the Ghanaians populations live in rural areas where their livelihoods depend on smallholding agriculture. Smallholding farmers produce about 28.3% of GDP and 10% of all exports by value.  It is estimated that 85% of cereals, 40% of rice and 100% of starch staple food, including significant exports and raw materials for local industries are produced by this type of farming system. Despite these contributions to food security, the sector is plagued with several challenges which militate against their success. Though, many researchers have discussed these challenges but failed to account for the magnitude and severity of these challenges with quantitative evidence as well as the sequential order of the problems. In an attempt to fill this gap, factor analysis methodology is used to evaluate the weight of each challenge confronting farmers in Ghana. With a semi-structured questionnaire, random sampling technique was used to select 381 farmers and interviewed. The findings revealed that five components containing 28 variables determine about 80% percent variations in the production of smallholders. These factors were named as managerial challenges (26.286% of variance), technological challenges (24.045% of variance), marketing challenges (15.685% of variance), extension services challenges (6.933 % of variance) and health related challenges (6.839% of variance). The magnitude of the factor loadings indicated that the 28 variables are having great toll of smallholders and implementing the output of these findings will significantly reduce all constraints facing farmers by 80%.

Keywords: Factor analysis, Marketing challenges, Principal component analysis, Percentage variance, Smallholders