Evaluating the Determinants of Access to Ghana Fertilizer Subsidy Program

Abstract

In line with economic conditions in 2008 and the need to boost agricultural productivity and stabilize agricultural commodity prices, the government of Ghana instituted a nationwide fertilizer subsidy program. This study analyzes the determinants of access to the Ghana Fertilizer Subsidy Program (GFSP). The paper uses cross-sectional data collected from 352 farmers in four districts in Ghana. To achieve the main objective of the study, probit and tobit models are used. This study reveals that access to the GFSP is still low (42.6%) despite the government’s increasing budgetary allocation into subsidy provision over the years. The results of the probit and the tobit models indicate that access to the GFSP is largely determined by farmers’ gender and political influence. It also reveals that the subsidy program does not crowd out private fertilizer retailers as farmers who buy more quantities from the commercial market are less likely to be allocated subsidy passbooks. It is therefore recommended that discrimination against women should be minimized to encourage their participation in agriculture and empower them to bring to the fore their potentials. Also, the government must encourage more private fertilizer retailers to establish sales points at vantage places to improve access to fertilizer.