Varietal Adoption and Economics of Rice Production in Ejura-Sekyedumase and Atebubu-Amantin Municipalities of Ghana

Abstract

In this paper, we analyse the factors that drive the adoption and non-adoption of the New Rice for Africa as well as compare the costs and returns associated with such decisions in the Ejura-Sekyedumase and Atebubu-Amantin Municipalities of Ghana. A structured questionnaire was administered to 216 smallholder rice farmers who were sampled through a three-stage stratified sampling approach. Data analyses were conducted using descriptive statistics, the Chi-square test, Kendall’s coefficient of concordance, the independent sample t-test, and the gross margin analysis. The results show that the adoption of the improved rice variety was driven by its higher yield advantage and early maturity as well as good taste and aroma. However, the non-availability of the improved seed, lack and/or inadequate information, and delays in input supply restrained the farmers from adopting the improved rice variety. The production of the improved rice variety was labour and capital intensive given its higher cost of production compared with the unimproved rice varieties. The adopters reported a significantly higher cost of production and gross margin than did the non-adopters. The results demonstrate the need to integrate technology promotional activities with an effective input supply system to facilitate the adoption of improved rice varieties.

Keywords: Adopters, non-adopters, NERICA, cost, returns, gross margin.