The impact of agricultural marketing program on farm investment: Evidence from Ghana

Figures & data

Figure 1. The conceptual framework.

Figure 2. The study area.

Table 1. Variable description

Variable	Variable name	Measurement
BSOMP	BSOMP	Dummy of 1 is BSOMP intervention (treated) farmer, or 0 when otherwise
Farmz	Farm size in (acres)	Farm size as a measure of land area under cultivation in acres and is a measure of extensification
Input	Level of inputs usage	Level of inputs usage reflecting of intensification ranging from 1–10
Yield	Yields in (bag)	Yield of maize measured in 100-kg bags
Gen	Gender	Dummy with 1 for male and 0 for female
Age	Age	Household head’s age in years
HS	Household size	Total number of people in the household by counts
Mar	Marital status	Dummy with 1 for married and 0 for unmarried household head
Edu	Education	Educational level of household head measured by in cycles (no education = 1, basic = 2, secondary = 3 and tertiary = 4)
Accmark	Access to market	Level of market access on a scale of 1–5
Park	Packaging cost	Cost of packaging material for the selling of maize in Ghana Cedis
Trans	Transportation cost	Cost of transportation of produce to the market in Ghana Cedis
Ext	Extension service	Level of access to extension services on a scale of 1–5
	Storage facility	Level of market access on a scale of 1–5
Ass	Farmer association	Level of activeness your farm association on a scale of 1–5
Secocp	Secondary occupation	Level of engagement in secondary job on a scale of 1–5

Note: All the variables measured on the five-point were normalized/recoded to a scale of 0–10 before the analysis.

Table 2. Descriptive statistics

Variable name	Control farmers (N-257)		Treated farmers (N-250)
	Mean	SD	Mean	SD
Acreage	2.265	1.832	6.626	4.044
Yield	10.556	9.110	27.016	19.514
Level of inputs usage*	5.280	1.730	6.528	1.476
Gender	0.673	0.470	0.784	0.412
Age	48.790	12.964	49.068	9.140
Household size	5.903	2.321	5.584	2.271
Marital status	0.798	0.403	0.764	0.425
Education	2.293	0.918	2.424	0.881
Access to market*	5.119	1.846	4.597	1.768
Packaging cost in Ghana Cedis	51.089	15.106	52.766	7.442
Transportation cost in Ghana Cedis	49.191	17.644	57.148	16.345
Access to extension Service*	4.028	1.088	4.628	1.038
Level of usage of storage facility*	2.796	3.197	1.511	2.943
Level of activeness your farm association*	3.782	3.434	3.199	4.325
Secondary occupation other than farming*	1.625	3.074	1.220	2.606

Note: A bag of maize is 85 kg. Variables with * have been recorded using the Scale Homogenization by Linear Stretch with a scale of 0–10 to normalize them with 10 as the best end of the scale. Further note that, on a 1–5 point scale, 1 is worst and 5 is best.

Table 3. Participation in buffer stock operations/logit model

Variable	Coef.	Marginal effects(dy/dx)
Gender	0.388**(0.153)	0.155**(0.061)
Age	0.005(0.006)	0.002(0.002)
Household size	−0.046(0.029)	−0.018(.012)
Marital status	−0.384**(0.164	−0.153**(0.065)
Education	0.141**(0.071)	0.056**(0.028)
Access to market	−0.132***(0.037)	−0.053***(0.015)
Cost of packaging of produce	0.008(0.005)	0.003(0.002)
Transportation cost	0.021***(0.004)	0.009***(0.002)
Access to extension service	0.302***(0.060)	0.120***(0.024)
Level of storage facility	−0.070***(0.022)	−0.028***(0.009)
Membership of farmer association	−0.016(0.017)	−0.006(0.007)
Secondary occupation other than farming	−0.038*(0.023)	−0.015**(0.009)
Constant	−2.262***(0.565	-
Log likelihood	−270.137
LR chi^2	116.82.***
Pseudo R^2	0.178
Obs.	474

Note: ***; **; *: significant at 1%, 5% and 10 levels respectively. The figure in the parenthesis represents the standard error. Further note that, on a 1–5 point scale, 1 is worst and 5 is best.

Table 4. Impact of BSOMP on farmers’ investment behavior

Matching	Variable	Sample	Treated	Controls	Difference	S.E.	T-stat
Kernel	Farm size	Unmatched	6.710	2.224	4.486	0.293	15.330
		ATT	6.710	2.278	4.432	0.325	13.630
	Yields	Unmatched	27.237	10.429	16.809	1.404	11.980
		ATT	27.237	11.457	15.780	1.567	10.070
	Inputs usage	Unmatched	6.555	5.328	1.227	0.147
		ATT	6.555	5.331	1.224	0.195	6.260
Nearest neighbor	Farm size	Unmatched	6.710	2.224	4.486	0.293	15.330
		ATT	6.710	2.324	4.386	0.344	12.750
	Yield	Unmatched	27.237	10.429	16.809	1.404	11.980
		ATT	27.237	11.506	15.731	1.615	9.740
	Inputs use	Unmatched	6.555	5.328	1.227	0.147	8.340
		ATT	6.555	5.378	1.177	0.214	5.500
Radius	Farm size	Unmatched	6.710	2.224	4.486	0.293	15.330
		ATT	6.710	2.224	4.486	0.294	15.280
	Yield	Unmatched	27.237	10.429	16.809	1.404	11.980
		ATT	27.237	10.429	16.809	1.407	11.940
	Inputs use	Unmatched	6.555	5.328	1.227	0.147	8.340
		ATT	6.555	5.328	1.227	0.147	8.350
Caliper	Farm size	Unmatched	6.710	2.224	4.486	0.293	15.330
		ATT	6.710	2.331	4.379	0.424	10.320
	Yield	Unmatched	27.237	10.429	16.809	1.404	11.980
		ATT	27.237	11.066	16.172	1.812	8.930
	Inputs use	Unmatched	6.555	5.328	1.227	0.147	8.340
		ATT	6.555	5.640	0.915	0.241	3.800

Note: All the t- stats are significant at 1%.

Table 5. Summary of the quality of the match

Quality indicators	Kernel matching		Nearest neighbor matching
	Unmatched	Matched	Unmatched	Matched
Pseudo R^2	0.178	0.015	0.178	0.035
LR Chi^2	116.820	9.680	116.820	23.100
P> Chi^2	0.000	0.644	0.000	0.027
MASB%	23.400	8.000	23.400	12.200

Figure 3. Propensity score distribution for the kernel-based and nearest neighbor matchings.