Tractor Service Utilization, Profitability, and Adoption Determinants Among Smallholder Maize Farmers in Ejura-Sekyedumase Municipality, Ghana

TL;DR

This study assesses the profitability, adoption factors, and barriers of tractor services among smallholder maize farmers in Ghana, highlighting economic benefits and supply constraints affecting mechanization adoption.

Contribution

It provides empirical evidence on the profitability and determinants of tractor service adoption, and suggests policy measures to enhance mechanization among smallholders.

Findings

Tractor users achieved higher net profit margins and return-to-cost ratios.

Farming experience and fertiliser use positively influence adoption.

Farm size negatively affects adoption, indicating supply-side constraints.

Abstract

Although tractor services are increasingly used in the Ejura-Sekyedumase Municipality, access remains uneven, and some smallholder maize farmers still rely on labour-intensive production methods. This study investigated the profitability effects and adoption determinants of tractor service utilisation in Ejura-Sekyedumase Municipality, Ashanti Region, Ghana. Cross-sectional data were collected from 359 farmers using multi-stage proportionate random sampling. A multivariate probit model identified simultaneous adoption determinants across ploughing and shelling services. Propensity score matching (PSM) estimated a positive profitability effect of GHS 471 per acre after controlling for observable selection bias. Users achieved a net profit margin of 29.87 percent and a return-to-cost ratio of 42.60 percent, compared with 25.10 percent and 33.51 percent for non-users, respectively. Farming experience and fertiliser intensity positively predicted adoption, while farm size exerted a consistent negative influence; this may suggest supply-side availability constraints, including potential fleet-capacity limitations. The negative FBO result may reflect labour-sharing functions that substitute for paid mechanized services; this mechanism should be tested directly in future work. Kendall's W (0.381) indicated moderate agreement in farmers' rankings, with financial constraints ranked as the leading barrier. The study recommends targeted credit facilitation, possible AMSEC fleet expansion pending supply-side verification, intensified extension services, gender-responsive mechanisation policies, and redesigned FBO programmes.