Commercial crop farmers’ preference and willingness to pay for innovative agricultural taxes: evidence from Afram Plains South District, Ghana

Purpose This study aimed to investigate the characteristics of commercial farming operations, factors influencing farmers’ willingness to pay for innovative agricultural taxes and challenges impeding tax payment. Design/methodology/approach This study employed a mixed-methods approach, surveying 113 commercial crop farmers in Ghana’s Afram Plains South District using a structured questionnaire. Sampling combined purposive and stratified random methods. The analysis utilized descriptive statistics, binary logistic regression to identify factors influencing tax payment willingness and Kendall’s coefficient of concordance to rank challenges impeding tax payment. Findings The study found that 39% of respondents had 1–10 years of farming experience, with 74% operating farms of 50–100 acres. 80% reported paying some form of agricultural tax. There was a high willingness to pay innovative taxes: 89% for agricultural income tax and 95% each for land withholding tax and crop-specific levies. Key factors influencing tax payment willingness were tax awareness, knowledge of tax laws, perception of penalties and quality of public services. Major barriers to tax payment included excessive tax burden, inadequate fiscal literacy and institutional malfeasance. Research limitations/implications The study implies a need for tailored tax policies that consider the unique characteristics of commercial farming operations and address the identified barriers to tax compliance. Originality/value This study provides novel insights into agricultural taxation dynamics in Ghana, focusing on commercial crop farmers’ willingness to pay innovative taxes. It bridges a literature gap by examining the intersection of agricultural development and tax policy in a developing economy context, offering valuable guidance for policymakers in designing tax systems.