Impact of NERICA adoption on incomes of rice-producing households in Northern Ghana

Abstract

The Multinational NERICA Rice Dissemination Project in Ghana promoted the adoption of NERICA varieties and complementary technologies. NERICA adoption was expected to increase rice production and the incomes of beneficiary households. This study assessed the impact of NERICA adoption on the incomes of rice-producing households in northern Ghana. With data from a cross-section of 150 systematically selected rice-producing households, the study revealed 36.7% adoption rate. Agriculture and rice production were the most important livelihood activities as they contributed 80% and 55.09% of total household income respectively. To control for endogeneity, the study used the local average treatment effect (LATE) estimation methodology and showed that NERICA adoption significantly increased rice income, agricultural income, per-capita income and total annual income by $196.52, $446.37, $0.44 and $498.44, respectively. The major recommendation from this study is the need to continue the promotion of the NERICA varieties by creating access to seeds of the varieties together with other productivity enhancing technologies. Efforts should be focused on the provision of marketing and roads infrastructure to induce access to input and product markets.