Abstract:
This study sought to determine the effects of off-farm economic activities on farm household income in the Abura-Asebu-Kwamankese District in the Central Region of Ghana. A cross-sectional survey design was used and data was collected from farm household heads and their spouses in the district for the purpose of analysis. An interview schedule was used for the collection of the data from the respondents. In total 253 married farm households were interviewed.
A bivariate probit model was first estimated to find the decision of household heads and spouses in a married farm household to participate in off-farm economic activities. Afterwards, a Heckman sample selection technique was used to estimate the effect of participation in off-farm economic activities on farm households’ income.
For the participation equation, it was found out that age, farm size, household size, access to credit and also access to remittances were significant in explaining the decision to participate. For the income function, the participation in off-farm economic activities had a significant effect on the farm household income.
In order to raise farm households’ income, it is recommended that employment activities, such as the National Youth Employment Programme, that train and provide income to beneficiaries be improved and expanded.
