Factors Influencing Commercialization of Smallholder Agriculture

Commercialization of agriculture is a major challenge of smallholder farmers in Africa. Agricultural policies and programmes over the years have centered on resolving these challenges. The present study analyzes the trends in maize and cassava production by farm households; estimates the levels of commercialization of these two crops; and quantifies the factors influencing intensity of commercialization in the Effutu Municipality using the Tobit model. Results indicate a higher annual growth rate of cassava production relative to maize production. The extents of maize and cassava commercialization are 0.53 and 0.72 respectively. The study observes, inter alia, that output price and farm size are associated with a higher level of cassava and maize commercialization. It is recommended that policy should be aimed at improving the quality of agricultural extension delivery services, strengthening of market information provision and the functioning of the land lease market coupled with development of the land sales market.