Effect of Price and Non-price Incentives on Production and Marketable Surplus of Food Crops Supply in Ghana

Abstract

Aim: This study examined food crop farmers’ supply responsiveness to selected price and non-price variables. Study Design: Cross-sectional design Place and Duration of Study: The study was carried out in Ejura Sekyeredumasi District in the Ashanti Region of Ghana and data was collected in November 2013. Methodology: A simple random sampling technique was used to sample 250 farmers for the study. Structured questionnaire was used to solicit information from the sampled farmers on production and marketing of maize and cassava. The study used a modified Nerlovian supply model to analyse the data in order to assess farmers’ supply responsiveness to selected price and non-price variables. Results: The results of the study revealed that food crop farmers respond favourably and promptly to incentive package (price or non-price factors) and this reflected in farmers’ output and farm management practices. Conclusion: The study provides evidence to support price incentives and non-price factors on food crop supply response. It suggests that a strong complementary policy instrument involving price and non-price factors will provide a fillip to agricultural productivity.