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<p>Peasant maize production is predominant in Ghana and other West African countries, especially among rural dwellers who are mostly smallholders and produce primarily for household consumption while the surplus is sold. Such farmers have low-credit access for input acquisition, farm expansion, and productivity improvement. Thus, we explore the role of credit in labour cost, input cost, and maize output relationships among peasant producers using cross-sectional data. We apply Newey’s (1987) two-step Tobit with endogenous regressors, linear regression with endogenous treatment effects, and three-stage least-squares regression. Farm-specific characteristics like main and secondary occupations, land preparation method, farm-income, labour-source, distance to agro-input shops, input-training, farm size, and outgrower schemes drive labour cost, input cost, maize output, and credit. We observe causal relationships among labour cost, input cost, and maize outputs. Credit raises input cost, while yield raises labour and input costs. Input cost raises labour cost and yield while labour cost raises input cost. Thus, the cost items influence each other and interplay with productivity. Though credit raises labour and input costs, it does not necessarily/automatically improve maize productivity. Our findings have policy implications to boost credit for effective labour and input utilization to boost output.</p>

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Labour, inputs, and output relationships: does poor credit-access for peasant maize farmers play a role

  • 期刊论文

  • 发表日期：

    2026年6月1日

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  • Bismark Amfo,
  • Boniface Sofo Atindana,
  • Reuben Amewuda,
  • John K.M. Kuwornu

摘要

Peasant maize production is predominant in Ghana and other West African countries, especially among rural dwellers who are mostly smallholders and produce primarily for household consumption while the surplus is sold. Such farmers have low-credit access for input acquisition, farm expansion, and productivity improvement. Thus, we explore the role of credit in labour cost, input cost, and maize output relationships among peasant producers using cross-sectional data. We apply Newey’s (1987) two-step Tobit with endogenous regressors, linear regression with endogenous treatment effects, and three-stage least-squares regression. Farm-specific characteristics like main and secondary occupations, land preparation method, farm-income, labour-source, distance to agro-input shops, input-training, farm size, and outgrower schemes drive labour cost, input cost, maize output, and credit. We observe causal relationships among labour cost, input cost, and maize outputs. Credit raises input cost, while yield raises labour and input costs. Input cost raises labour cost and yield while labour cost raises input cost. Thus, the cost items influence each other and interplay with productivity. Though credit raises labour and input costs, it does not necessarily/automatically improve maize productivity. Our findings have policy implications to boost credit for effective labour and input utilization to boost output.