Efficiency of Rice Farming in Ghana: Policy Implications for Rice Sector Development

Abstract There is high demand for food commodities due to population growth in sub‐Saharan Africa. However, the agricultural productivity remains low making it difficult to meet this increased food demand. Therefore a need arose to improve agricultural productivity, including the productivity of the rice industry in Ghana. This study analysed the factors influencing the efficiency of Ghana's rice industry using the stochastic metafrontier model. A total of 470 smallholder rice producers from two districts in Upper East region were selected for the study. The empirical results reveal that the rice producers are technically inefficient and operating below the metafrontier. The results also indicate that the factors that influence farmers’ technical efficiency level are different between the two districts. Results also indicate that technology adoption or use of improved production practices increase the technical efficiency of rice farmers. Based on the results it is recommended that policy‐makers and researchers develop district specific recommendations, and determine how the adoption of improved technology can be increased.