C:\fakepath\the removal of agricultural subsidies and their effects on tomato production

C:\fakepath\the removal of agricultural subsidies and their effects on tomato production

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  THE REMOVAL OFAGRICULTURAL SUBSIDIES AND THEIR EFFECTS ON TOMATO PRODUCTION IN GHAHA<br />(A CASE STUDY OF AKOMADAN IN THE OFFINSO DISTRICT)<br />INTRODUCTION<br />BACKGROUND OF THE STUDY<br />Ghana is basically an agricultural country and most of the people live in rural areas. The level is put at 70 percent and agricultural is their major occupation .In the past, agriculture include forestry accounted for about 57 percent of the gross domestic product (GDP), close to 80 percent of the labour force. Agriculture is said to be the backbone of the economy. Its contributes to the gross domestic product (GDP),foreign exchange, food production ,supports about 60 percent of the economy and serves as a basic source of income for the rural people.<br />Between 1970 and 1982, GDP declined by 0.5% per annum. One of the major causes of this decline was the fall in agricultural production. Output of food and industrial crops declined at a rate of 0.3% per annum between 1970 and 1980.Cereal production, which exceeded domestic demand by some 200,000 metric tones in 1971 to 1973, registered a deficit of over 300,000 tones in 1981 to 1983. Per capital food availability in 1981 to 1983 was 30% lower than 1975. With a population growth rate estimated at an average of 3 percent per annum, the decline in food implies a fall in the nutritional status of the people.<br />The decline of the agricultural sector was linked to the macroeconomic and other policies pursued by the government. The policies can be summarized as follows;<br />Monopolization of the economy without corresponding increase in the output resulting in a high rate of inflation and lower real form incomes.
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  Absence of governmentsupported investment programme; many feeder roads become unmotorable and so many trucks refused to haul food and agricultural produce from major production centers to the consuming centers.Rural development was neglected in the government programmes, so rural –urban migration went on ascendancy .Therefore labour which apart from land, forms the major input for agricultural production became scarce and a major constraining factor, and others (Asenso Okyere in Aryeetey,1992).<br />Since the independence of Ghana, however most of the ruling government has been emphasizing on the role of the sector due to its 60% support of the economy. This emphasis is manifested in the Operation Feed Yourself, 1973-1975, where the agricultural sector is provided with high subsidies, example of inputs that receive consider fertilizer, improved seedlings, tools machinery ,financial loans, credits, animal feed pesticides and other<br />PROBLEM STATEMENT<br />Under the structural adjustment programme (SAP 1986) which has an aim of mainly to cut down government expenditure, establishing effective production system and effective use of resources, public subsidies on production activities was seen as a distortion. In respect of this from 1986 government established the policy that public subsidies should be removed from all production sectors including agriculture, manufacturing and social sectors. The effective implementation of this policy so far as the agriculture sector is concerned started in 1988 on gradual basis. Under the Medium Term Agricultural Development Programme (MTADP), the Agricultural Sector Infrastructure programme (ASIP) were all means to effectively implement this policy and also absorb the negative effects of agriculture in the rural sector.<br />The removal of the subsidies has effects on different type of agricultural activities. The effect however, differs from those producing industrial crops like cocoa, coffee, and tobacco as against those producing food crops such as yam, plantain, and vegetables of which tomatoes production is no exception.<br />The significant factor of the incidence level is the magnitude of dependence of production on the public subsidies. In this sense whiles the removal of certain agricultural subsidies could have significant effect on the production of another crop, for another it could be non-consequential. The implication is that some production activities and particularly some formers might be affected by the subsidy policy while others experienced minimal effect.<br />RESEARCH QUESTION<br /> How was tomato production affected (negative or positive)<br /> How were those farmers affected?<br /> Does it have any implications on the farmers’ production level, and income distribution?<br /> Has it got any implication on production? and what is the future of tomato production in Akomadan area and vis-à-vis the subsidy removal ?<br />THE OBJECTIVE OF THE STUDY<br />The general goal of the study is to carry out an in-depth investigation and objective analysis of the effects of the subsidy removal on tomato production in Ghana . The following are the specific objectives ‘<br />To examine the public subsidy on tomato production at Akomadan before the implementation of the subsidy removal policy.<br />To examine the effect of this subsidy removal on inputs access with regards to tomato production and product line of identified tomato production activities.<br />To identify and relate particular aspect of subsidies to respective agricultural production.<br />To make recommendation regarding effects of the subsidies on the sustainable growth of tomato production in Akomadan area (Offinso district). <br /> <br />The study is based on the hypothesis that “the removal of subsidies has adversely affected tomato production in Ghana”.<br />THE SCOPE OF THE STUDY<br />Specifically the study is limited to the Akomadan area in the Offinso District and primarily focuses on how production and marketing activities are organized.<br />The scope of the study covers the concept of direct subsidies to the tomato production sector and with this it also deals with farming households involved in tomato production, government agencies (extension officers), non –governmental organizations in agriculture and sellers of tomato.<br />RESEARCH METHODOLOGYThe methodology highlights four key areas. These include the research process, data source, sampling process and the analysis of obtained data. The research process, in attaining the set objectives focused on a test of the hypothesis. The process thus involves a detailed literature scan establishing work already accomplished in the area of study. The literature and are connaissance survey guided in the selection of the study target and unit of study. The data obtained from the survey will be analytically compared to the establishing records of the past years and that gathered from secondary source. Conclusions will be drawn from the analysis based upon which recommendations will be made.<br />The sample survey method will be used and questionnaires will correspondingly administered. Data will be collected from both secondary and primary services. Secondary data will be collected from the Policy, Planning, Monitoring and Evaluation Department (PPMED) of the Ministry of Food and Agriculture, the Offinso District Assembly, internal memos and other published documents.<br />Primary data will be collected from household survey, interview of extension officers and the assemblymen, etc using the sampling survey. First the settlement will be divided into four major areas. At each major area, about twenty-five household will be selected for interview. Estimates of hundred questionnaires will be administered. Last but not the least household will be selected purposely for the kind of tomato they produce.<br />LIMITATIONS OF THE STUDY<br />The research will not take place without limitations. The means of drawing past information from informants through applied with skills and enormous experience by the interviewers, it must be accepted that drawing from memory could never be without fault. <br />ORGANIZATION OF THE STUDY<br />The work will be organized into four major part, with the first part comprising chapter one. This chapter deals with the general introduction to the study, presenting the problem under discussing and the process by which the identified problem is going to be solved.<br />Chapter two reviews relevant literature related to the study such as policies and issues of the agriculture sector.<br />The third chapter will be the analysis of the field information from the policy level to the household level and the analysis of the data and information.<br />The last part, chapter four will be the conclusion chapter which will present the major findings, conclusions and recommendation.<br />