Open AccessDeterminants of Off-Farm Income among Smallholder Rice Farmers in Northern Ghana: Application of a Double-Hurdle Model
Author(s) -
Benjamin Tetteh Anang,
Richard Yeboah
Publication year - 2019
Publication title -
advances in agriculture
Language(s) - English
Resource type - Journals
eISSN - 2356-654X
pISSN - 2314-7539
DOI - 10.1155/2019/7246176
Subject(s) - diversification (marketing strategy) , agriculture , work (physics) , farm income , business , household income , rural area , agricultural economics , socioeconomics , economic growth , economics , geography , marketing , political science , mechanical engineering , archaeology , law , engineering
Income diversification by farm households has gained the attention of researchers and policy makers due to its commonness especially in developing countries. This study sought to empirically investigate the determinants of off-farm income among smallholder farmers in northern Ghana using a sample of 300 rice farmers. A double-hurdle model was used to determine the factors influencing participation in off-farm work as well as the predictors of actual amounts earned from working outside the farm. The results revealed that gender, farming experience, years of education, and access to credit are the factors determining participation in off-farm work while farming experience, years of education, and geographical location are the determinants of income from off-farm work. The paper concludes that measures to enhance rural income diversification will spur the rural economy and these measures should seek to address the problem of low level of formal education in rural areas.