Risk Management and Socioeconomic Drivers of Crop Productivity in Ghana

This study explores the impact of risk management strategies and socioeconomic factors on crop productivity among smallholder farmers in Ghana. Utilising a cross-sectional survey design, data were gathered from 4,065,095 agricultural households, as reported by the Ghana Census of Agriculture (2018). The sampling frame, derived from the 37,657 Enumeration Areas defined by the Ghana Statistical Service (GSS), provided a systematic approach for identifying the target population. Key variables include crop productivity (measured in kilograms per hectare), socioeconomic factors (education levels, marital status, and gender), agricultural practices (plot size, mixed cropping, and irrigation), and economic and demographic factors (labour costs, hours of work, average market price of crops, and age). The findings reveal that educational attainment at basic and medium levels significantly enhances crop productivity, while higher education levels do not show direct benefits. Mixed cropping and irrigation practices are shown to significantly increase productivity, underscoring their importance in agricultural risk management. Larger plot sizes demonstrate economies of scale, contributing to higher productivity. Sociodemographic factors such as marital status and gender influence productivity, with male and married farmers achieving higher yields. Labour and input costs are critical determinants of productivity, highlighting the financial risks inherent in farming. The study emphasizes the need for integrated policies that incorporate agricultural insurance, education, financial services, and sustainable farming techniques to build a resilient agricultural industry in Ghana. These findings highlight the potential for agricultural insurance and risk management measures to reduce vulnerabilities and improve sustainability.