The Broker

Photo by Peter Casier

Constraints to farmers' entrepreneurship in Ghana

Hans Eenhoorn | 07 December 2009

Thanks, colleagues, for pointing to the opportunities small-scale farming holds for development. Family farmers’ position and ability to produce is crucial – not least because of their sheer numbers. How can society support, or cities absorb, hundreds of millions of people with a farming background? The only credible way to resolve rural hunger is for farming to become a source of wealth.

Coming from an entrepreneurial background, we performed value chain analyses in different regions of Ghana by interviewing more than 1200 smallholder farmers. We wanted to understand the constraints these farmers face to improve their abysmal economic conditions through agro-entrepreneurship, which we defined as planned production for a defined market with a profit objective. We found that peasants are ill at ease with concepts like planning, markets and profit. Many of them have become conservative in their daily practices because any innovation in livelihood strategy creates a risk that they cannot cope with. This attitude could provide for a stable livelihood if the environment farmers operate in was not so dynamic: population growth, depleting soils, climate change, and other factors have deteriorated the chances for livelihood and survival. Entrepreneurship in one form or another is required to break the cycle of perpetuating poverty, hunger and misery. In our Ghanaian investigation, we identified 26 discrete constraints that restrict the entrepreneurial development of smallholder farmers. We grouped these into four categories: constraints related to production and processing; constraints of the risks and uncertainties that farmers face; the lack of incentives to invest; and the mindset of subsistence farmers.

We still believe that developing value chains is necessary for improving the domestic and international quality and quantity of trade in agricultural products. However, value chains need to be designed from the beginning to improve the livelihoods of smallholders.

Photo credit main picture: Photo by Peter Casier

Comments

Your comment will not be automatically posted but first reviewed by the editor. If the editor has questions with respect to the content of your comment, you will be contacted.

 

Family farmers fetch poor prices

in my daily work, i work with rural communities these are small scall maize growers in zambia, including other crops. these people contribute significantly in bulk 70% of there produce to feeding the country and yet they are not formally recognised commercially, because of such negative views as familly farming, even when they sell their produce it fetches low prices compared to the commercial farmers under the assumption that small scale maize is low grade, but when you compare their maize quality to that of commerciall guys its the same or even better. without good prices these guys cant save enough to break through the vicious pioverty web, low pricing keeps them within this web, even when they bulked there crop to achieve the market baggain volumes for a good price they still get a roll deal.
chisanza chilangwa | January 11, 2010 | Respond

Due ecosystem rewards rarely make it to Family Farmers

International reports indicate that agriculture is both a contributor to climate change, and a possible solution. Thus family farming can feed the world and care for the environment. This is more or less what The AgriCultures Network members state in “Family Farming First” in The broker. Small-scale farmers make up a quarter of the world population, and, with rights to land and inputs), they invest in their farms’ resilience. FAO (2009) identifies as the most promising climate mitigation options: sustainable forest, cropland and rangeland management, agroforestry, and restoration of degraded and organic soils - all part of sustainable farming that peasants. That is, in a conducive (policy) environment (Van der Ploeg, 2008). Smallholder multicropping farming areas (with trees) provide watershed services for downstream communities, scenic landscapes, pollination, biological corridors and (agro)biodiversity. And such farming creates both resilience to and mitigation of climate change.

Sooner or later, substantial funds will be available for climate change. But how is such money going to be spent? With Payment for Ecosystem Services (PES) a “buyer” (the world community) pays for ecological services (mitigation of climate change); often applied for farmers to conserve forests and other wildlife areas. But is “healthy farming” not the best small-scale farmers can offer to the world? What if, besides food, farmers produce environmental services on their land – and get rewarded for that?

PES fits in the multi-activity family farming system that Van der Ploeg (2008) describes: a peasant farmer takes any source of income that contributes to the farming system. But on the other hand PES may result in less flexibility when restricting the use of wildlife and forest areas.

All kind of exclusion mechanisms hinder small-scale farmers from enrollment in PES schemes: formal property rights, bureaucracy, lack of network and knowledge or just too small areas. For policy makers it may be easier to deal with a few landowners who manage vast areas of forests or agriculture land. But can we imagine that small-scale farmers will be included in PES schemes and tap funds such as to mitigate climate change? Can this become a fair market for ES from which smallholders benefit?

You can also question if PES is based on a valid analysis of the problem. Is the negligence of ecology due to the lack of economic value? If smallholders – women - have limited land tenure rights or no right to harvest trees, why would they invest?

Long-term benefits of ecosystem management are in itself an incentive to keep the farm sustainable and farmers do not need PES to farm in a sustainable way. But PES could still be a welcome source of extra income and it could trigger putting farmers’ real interests on the agenda. At pilot-scale, increasingly small-scale farmers are participating in PES schemes. It will be hard work to create the mechanisms by which the other 99.9 % could take part in PES-mechanisms – yet such work would pay of for a more sustainable world with less hunger. We think it’s worth the try.
Mathilde Maijer and Frank van Schoubroeck | January 07, 2010 | Respond