Factors influencing Soyabean Production and Willingness to Pay for Inoculum Use in Northern Ghana

Abstract

Aim: This study was aimed at providing empirical information on key drivers of soyabean production in northern Ghana and factors that determine farmers’ willingness to pay for inoculum use in the production of the crop. Research Design and Methodology: A total of 240 grain legume producers were sampled from the three northern Regions in Ghana, out of which 188 were soyabean producers. Farmers who were selected through a combination of stratified and simple random sampling techniques were interviewed with the use of standardized structured questionnaires to elicit primary information for analysis. The Ordinary Least Squares (OLS) estimation procedure was used to estimate a Cobb-Douglas Soyabean production function. In addition, a binary logistic regression model was used to examine factors that determine farmers’ willingness to pay for inoculum use in soyabean production. Results: Evidence from the study showed that area cultivated and farming experience significantly influenced soyabean output positively at the 5% level. However, quantity of labour employed in production and educational level had significant negative relationship with soyabean output, all things being equal. Farmers’ willingness to pay for inoculum was found to be positively influenced by experience in soyabean production, access to credit, percentage of produce sold and awareness about inoculum at the 5% significance level. Male farmers were found to be more willing to pay for inoculum than female farmers, and distance from home to farm was found to be negatively related to farmers’ willingness to pay for inoculum, ceteris paribus. Conclusion: In an attempt to step up soyabean production and increase the uptake of inoculum among farmers without subsidy, awareness creation about inoculum, credit access and commercial orientation of farmers should be targeted as the key variables in any strategy or policy formulation