Effect of seeds and fertilizer subsidy component of the ―PFJ‖ on the outcomes of maize farmers in the Agona West municipality of the Central region –Ghana

Abstract

Maize is one of the most consumed food crops in Ghana. However, its production has been declining due to poor quality seeds and inadequate fertilizers. To deal with this challenge, the Ghana Government through the Ministry of Food and Agriculture introduced a flagship programme ―PFJ‖ with the aim of increasing productivity. Little empirical knowledge is known about how the intervention has improved the yields of maize farmers especially in the Agona West Municipality. The main objective of the study was the effect of seeds and fertilizer subsidy component of the PFJ programme on yield of maize farmers in the Agona West Municipality of the Central Region of Ghana. Two hundred and seventy-seven beneficiaries were randomly selected and interviewed using structured interview schedule. Descriptive statistics, paired sample t-test and Pearson correlation matrix and OLS were used to analyze the data. The results of the study showed that most (88%) of the respondents perceived the seeds and fertilizer subsidy component of the PFJ programme to be very highly effective. Again 86% of the respondents strongly agreed to the overall perceived attributes of the PFJ programme. The study's findings showed that most (94%) of the maize farmers agreed to the fact that the PFJ policy have had comprehensive impact on their yield and on their income as compared to previous years. The dependent sample t- test shows significant increase in yield (150%) from 408mt/ha to 1038mt/ha at 0.05 alpha levels before and after the adoption of the PFJ programme respectively. The regression analysis revealed that 4 independent variables (marital status, educational level, compatibility and relative advantage) were best predictors of maize farmers yield and income. Income also significantly improved from gh₵5500 to gh₵9000 per hectare before and after the adoption of the seed and fertilizer subsidy respectively. Major problems beneficiaries identified as hindrance to the project is the repayment arrangements and the ever-changing terms and conditions of the access to the input subsidy. The study concluded that the PFJ programme has brought about 85% increase in yield. The study recommended that government of Ghana should not discontinue the intervention programme since it has the potential to improve food production, income and the well-being of the people in the study area.