EXTENSION, CREDIT AND ADOPTION: A CASE STUDY OF FARMER PRODUCTION PLOT FARMERS IN THE CENTRAL REGION OF GHANA

ABSTRACT

This study sought to determine the relationship between extension access and/or access to credit and adoption of maize technology by small-scale maize farmers in the Central Region of Ghana. It is expected that the findings of this study will increase our understanding of the importance of extension and credit access in agricultural development.

The study was carried out in six districts of the Central Region of Ghana. These are Assin, Asikuma-Odoben-Brakwa, Agona, Awutu-Efutu-Senya, Gomoa and Komenda-Edina-Eguafo-Abrem districts. A survey questionnaire was used to collect data on personal socio-economic characteristics, extension access, access to credit and adoption of maize technology from a sample of 160 farmers. The sample, comprising 80 farmers who were members of the Farmer Production Plot (FPP) group and have access to Sasakawa Global 2000 (S.G. 2000) credit, and 80 fanners who were non-members of the FPP group (NFPP) were drawn using multi-stage sampling technique. Data collected was analysed using Statistical Package for Social Sciences (SPSS). Analysis yielded descriptive statistics of frequency counts, percentages, as well as cross-tabulations of variables that enabled the statistical testing of hypothesis using Chi-square. The findings indicate significant differences were found between FPP and NFPP farmers in relation to extension access, credit source, and adoption of innovations.

The FPP approach, which combines both extension education and credit delivery, leads to higher extension and credit access. Such access leads to fuller understanding of the package of maize innovations. Farmers who had access to extension but not credit tended to partially adopt the maize innovations. This was attributed to lack of adequate funds, particularly to buy fertilizer. More significantly farmers who had a combination of access to extension and credit tended to adopt the innovations fully.

Thus, a combination of extension access and credit greatly enhances adoption. The findings also indicate that apart from S.G. 2000 being the main source of credit for farmers, majority of them did not use other sources of credit in their maize farming activities. The FPP programme tended to favor large scale farmers and those who hire labour (implying wealthier ones) contrary to its documented target beneficiary who are the small-scale and poor farmers. Considering the positive relationship between access to extension and access to credit and adoption of innovations, it is concluded that both extension and credit are necessary to enhance agricultural development among small-scale farmers. However, considering that extension agencies directly administering credit is inimical to their role of providing education to farmers, it is recommended that extension programmes should be complemented with appropriate means of financial service provision, implemented by other agencies. However, such rural finance programmes should be able to cater for the credit needs of small-scale farmers. For instance part of the District Assembly Common Fund for poverty alleviation can be channeled through rural banks, traders, credit unions, susu-collectors, rotating savings and credit associations (ROSCA) and non-governmental organisations (NGOs) to cater for the credit needs of farmers, whilst savings mobilisation is encouraged at the same time. However, this requires effective and efficient joint consultation and collaboration between extension agencies and financial service providers to ensure maximum benefits, outreach and repayment of such loans.