COMPARATIVE COST-BENEFIT ANALYSIS OF USING INTEGRATED CROP MANAGEMENT TECHNOLOGY AND CONVENTIONAL METHOD IN VEGETABLE PRODUCTION IN THE LOWER MANYA KROBO DISTRICT OF GHANA

ABSTRACT

A new agronomic practice known as integrated crop management (ICM) technology is a combination of best farming practices to create a favorable environment thereby discouraging the use of the conventional method of farming. The main objective of this study is to compare the costs and benefits of using the integrated crop management technology and the conventional method. Primary data was solicited from 120 vegetable farmers using well-structured questionnaires. Descriptive statistics were used to describe the level of awareness and extent to which farmers understand the use of ICM technology. A cash flow projection was done on a 0.4Ha size of land for five years. Net Present Value (NPV) and Benefit-Cost Ratio (BCR) analyses were performed for farmers operating under the conventional method and the integrated crop management technology production situations. The Net Present Value analysis revealed that production of vegetables under both production technologies is viable. Moreover, the incremental Net Present Values (ΔNPV) for cabbage production, onion production and whole farm enterprise were all positive suggesting that the ICM technology is more financially viable than the conventional method of production. In this respect, the incremental NPV is GHS 2563.58 for cabbage enterprise and GHS 3949.43 for onion enterprise, and that of the whole farm enterprise (i.e. combined cabbage and onion production) is GHS 6,162.75. Further, the Benefit-Cost Ratio (BCR) analyses results revealed that vegetable production under the two methods are viable, confirming the results of the Net Present Value analyses. In this respect, the BCR for cabbage production is 1.58 for conventional method, 2.08 for the ICM technology; the BCR for onion production is 2.69 for the conventional method, 4.36 for the ICM technology. In addition, the BCR for whole farm enterprise is 2.42 for conventional method, 3.93 for the ICM technology. The results of the sensitivity analyses under the assumption of 5% reduction in yield and a 10% cost over-run indicated a positive NPVs for both methods of production in the case of cabbage production, onion production, and the whole farm enterprise. It is worthy to note that the NPV‟s resulting from the use of the ICM technology were still higher than those obtained under the conventional method of production. Moreover, the factors influencing farmers‟ practice/use of the ICM technology were estimated using the Logit regression model. The regression results of the factors influencing farmers‟ practice of ICM technology revealed that gender and awareness are significant factors influencing the farmers‟ practice/use of the ICM technology. Being aware of the technology and being a male farmer had a positive influence on farmers‟ practice of ICM technology.