Economic impact of cowpea agronomic research in Ghana: The economic surplus approach

English

The economic surplus approach was used to test the null hypothesis that research findings are not getting to Ghanaian farmers, for them to adopt and lead to productivity increases and attendant economic gains. A case-study crop chosen for this purpose was cowpea, which has enjoyed concerted research and technology transfer activities since some two decades ago. To achieve the objective of the study, a cowpea farmers survey, involving a nationwide random selection of 240 cowpea farmers, was conducted in 1997 to get farm budget data on their operations. The data were used to arrive at the adoption level of the improved technology package of growing improved cowpea seed developed through research, and the recommended attendant spraying with insecticide. The base adoption levei was used to derive a logistic curve which gave the adoption rate and cumulative adoption level in the year under consideration. The adoption levels and the economic returns obtained from the farm budget data and price elasticities of supply and demand for cowpea derived for the period under consideration(1980-1996) were used to compute the internal rate of return(lRR) for cowpea research using the economic surplus method. At 61 per cent adoption level in 1996 the IRR was found to be 58 per cent. Sensitivity analysis using 48 and 23 per cent as possible nationwide adoption levels in 1996 yielded IRR of 51 and 19 per cent, respectively. Comparing these [RRs to the opportunity cost of capital in Ghanaian agriculture of 32 per cent and that of donor countries who have greatly funded the research effort at 5-10 per cent makes cowpea research highly profitable. In the process, high monetary payoffs were found to haye accrued to the country. The null hypothesis, at least in the case of cowpea agronomic research is, therefore, rejected.

Ofosu, S. B.