IMPACT OF CROP PRODUCTIVITY ON POVERTY AMONG FARM HOUSEHOLDS IN GHANA

Abstract

Ghana Poverty Reduction Strategy I & II sought to in- crease crop productivity to reduce high poverty incidence in farm sector, but the magnitude of impact of the pro- ductivity on poverty is not present in all agro-ecological zones in Ghana. The aim of the study is to estimate pover- ty headcount ratio, poverty gap and poverty severity, and link crop productivity to poverty according to agroecol- ogy subject to a two-step instrumental variable regression technique using Pseudo Panel data from the Ghana Living Standards Survey (GLSS rounds 5 & 6). Farmers’ pov- erty headcount ratio, poverty gap, and poverty severity reduced from 57%, 25%, and 14% in 2005 to 37%, 14%, and 7% in 2013 respectively. The result further indicates that 1% growth in crop productivity reduces the probabil- ity of poverty headcount ratio, poverty gap and poverty severity by 0.28%, 0.38% and 0.75% respectively in all agro-ecological zones. Additionally, the paper shows that education, livestock and remittance income reduces pov- erty, while household size and great distance to access water increase poverty differently from agro-ecology. The study recommends rapid crop productivity growth by prioritizing technology adoption and institutional coordi- nation to suit agro-ecological conditions among the poor, illiterate and non-partisan.