Fertilizer price hikes, farmers’ willingness to pay and crop switching decision in Ghana
摘要
Fertilizer prices play a major role in farmers’ decision making. With the recent price hikes due to COVID-19 and the Russia-Ukraine war, an analysis of the crop-switching decisions of farmers and their willingness to pay (WTP) for mineral fertilizers is conducted. A total of 420 maize farmers were individually interviewed in 2022 and focus group discussions (FGDs) were conducted in 2023. Evidently, 93.4% farmers expressed that fertilizers prices were higher in 2022 than they expected. The average supply price and preferred average fertilizer demand price per 50 kg bag of fertilizer were GHS 379.2 and GHS 159.1, respectively, in 2022 and GHS 392.8 and GHS 205.0, respectively, in 2023. The demand price for fertilizers was influenced by farmers’ socioeconomic characteristics, appropriate use of of fertilizers, scale of production, desire for higher yield, non-use of organic fertilizers, and perceptions on climate change. In response to supply price hikes, one in every five farmers switched from maize production to mostly less fertilizer-demanding crops, such as soybean, resulting in lower fertilizer quantity application, yield, and nutrient use efficiency (NUE). While supply options could be explored simultaneously, it is important to address farmers’ demand-driven factors, such as low yield and associated low NUE.