he impact of millennium challenge account (mca) funds on output of farmers in the ejura municipality

Author: 
Augustine Adu Frimpong Joseph Afriyie, and Frank Obeng

Agricultural growth and productivity remains central to poverty reduction, particularly in the developing countries, where a large share of the population relies on agriculture and agribusiness for their livelihood. Generally speaking, there is a greater form of limited access to credit by a greater chunk of Ghanaian farmers. The question that can attract multi-billion answers is whether the risks associated with giving loans to farmers in sub-Sahara Africa of which Ghana is no exception are overtly immeasurable. The study made use of cross-sectional source of data. The research work randomly selected 100 beneficiary farmers of the MiDA facility and 100 non beneficiary farmers from the Ejura Municipality, specifically from the major farming territory zones of the area. The study adopted a household production function and analyzes using the Ordinary Least Squared model. Economic growth theory by way of neoclassical growth and endogenous growth models allowed the study to identify some key variables that influence growth within the framework of a production function. The household production function was thus adopted to see how the output and scale of production by farmers changes as a result of the loan facility given to them by the government. The study find out that, the impact of government financial facility on output was seen not to be significant, but the same regression method revealed that there is a positive and significant impact of the financial facility by the government from the MCA on the scale of production of farmers in the Ejura Municipality. The recommended that, financial facility to farmers in the area should be very monumental, such that it will have a significant impact on the output of the farmers.

Paper No: 
957