Profit Efficiency of Ghana's Maize Farmers

The study analysed the factors influencing profit and its efficiency for smallholder maize farmers in Ghana. The data used was collected from 576 maize farmers in Ghana s four main agro ecological zones using structured questionnaire. Descriptive statistics and the stochastic frontier translog profit function were the methods of analysis employed. The results showed that generally, an increase in the prices of fertilizer, pesticide, herbicide, seed and labour decreased the profitability of maize production in Ghana. Also, an increase in farm size by Ghanaian maize farmers decreased their profit levels. Furthermore, the maize farmers were found to be seriously profit inefficient as the mean profit efficiency was 48.4%. Maize farmers in the transitional zone of the country were also found to be more efficient in their profit levels than those in other zones. Finally, male gender, formal education, extension contact, access to good roads and credit as well as uses of fertilizer, pesticides and improved seeds were found to be positively related to profit efficiency of the farmers. Recommendations aimed at improving profit efficiency of maize farmers are suggested. Acknowledgement : We are especially indebted to the staff of the Ministry of Food and Agriculture in the West Mamprusi, East Gonja, Nkoranza, Ejura Sekyedumase, Fanteakwa, Sekyere South, Gomoa and Ketu districts/municipalities of Ghana for the information they provided about the maize crop and also assisting in the data collection. We are also grateful to the respondent maize farmers in the aforementioned districts/municipalities without whose co-operation the study could not have taken place.