Skip to main content
SpringerLink
Log in

Does participation in mining activities affect the profitability of food crops production? Evidence from Ghana

  • Original Paper
  • Published:
Mineral Economics Aims and scope Submit manuscript

Abstract

Even though previous studies have tried to establish the relationship between agricultural production and artisanal and small-scale mining, little is known with regard to the relationship between participation in mining activities and farm profitability. Meanwhile, the impact of participation in mining activities on the profitability of food crop production remains a topic for discussion among stakeholders in the mining and agriculture industries. In this article, we assessed the impact of participation in mining activities on the returns to food crop production by comparing the profitability of farmers engaged in mining activities with non-participants using primary data from 276 crop farmers in Ghana. The data was analysed using endogenous switching regression and propensity score matching. The results revealed that the age of respondents, household size, farm size, farmers’ perception of the impact of mining, participation in off-farm activities and low yield characteristics of farmers are common factors that influence the decision of the farmers to participate in mining activities. We also discovered that marital status negatively affects the profitability of both participants and non-participates. On the other hand, the cultivation of improved variety positively influences the profitability of both participant and non-participant groups. In addition, participation in off-farm activities and membership of farmer-based organization (FBO) tend to negatively influence participants’ profitability even though they had no significant impact on profitability of non-participants. Moreover, ownership of valuable assets and the number of extension visits positively influence the profit of non-participants but do not significantly affect that of the participants. Overall, it was revealed that participation in mining activities hurts the profitability of food crop production in the study area. The study therefore recommends that there should be increased sensitization exercises to help minimize the operations of illegal miners in Ghana, especially in the hubs of food crop production.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

Data Availability

Available on request from the corresponding author

References

  • Abadie A, Drukker D, Herr JL, Imbens GW (2004) Implementing matching estimators for average treatment effects in Stata. State J 4(3):290–311

    Article  Google Scholar 

  • Abdulai A, Huffman W (2014) The adoption and impact of soil and water conservation technology: an endogenous switching regression application. Land Econ 90(1):26–43

    Article  Google Scholar 

  • Aborah, E. O. (2014). Effects of small-scale mining on food production in the Amansie West District of the Ashanti Region (Doctoral Dissertation).

    Google Scholar 

  • Adator SW, Wu Q, Lambongang M, Otoo SL, Bosah CP, Nimako KO (2023) Farmers’ perception of the impact of gold mining on shrinking agricultural land and their livelihood in the Asutifi-North District. Res Policy 81:103379

    Article  Google Scholar 

  • Addo AM, Nyantakyi EK, Appiah-Adjei E, Ackerson NOB, Yeboah SIIK, Borkloe JK et al (2023) Environmental and health impacts of mining: a case study in Kenyasi-Ahafo Region. Ghana. Arab J Geosci 16(5):334

    Article  Google Scholar 

  • Adjei-Mensah K, Kusimi JM (2020) Dwindling water supply and its socio-economic impact in Sekyere Kumawu District in Ashanti Region of Ghana: public opinion on the role of climate change. Geo J 85(5):1355–1372

    Google Scholar 

  • Adonteng-Kissi O (2017) Poverty and mine’s compensation package: experiences of local farmers in Prestea mining community. Res Policy 52:226–234

    Article  Google Scholar 

  • Adu KO, Amponsah S, & Osei AA (2016) Factors influencing participation in illegal mining in Ghana: a case of Denkyira corridor.

    Google Scholar 

  • Agariga F, Abugre S, Siabi EK, Appiah M (2021) Mining impact on livelihoods of farmers of asutifi North district Ghana. Environ Manag Sustain Dev 10(4):29–45

    Article  Google Scholar 

  • Ajagun EO, Ashiagbor G, Asante WA, Gyampoh BA, Obirikorang KA, Acheampong E (2021) Cocoa eats the food: expansion of cocoa into food croplands in the Juabeso District, Ghana. Food Secur 1–20

  • Akylbekova D (2015) Analyzing the Resource Curse theory: a comparative study of Kazakhstan and Norway. Lund University

  • Anlimachie MA, Avoada C (2020) Socio-economic impact of closing the rural-urban gap in pre-tertiary education in Ghana: context and strategies. Int J Ed Dev 77:102236

  • Aroca P, Atienza M (2011) Economic implications of long-distance commuting in the Chilean mining industry. Res Policy 36(3):196–203

    Article  Google Scholar 

  • Asante BO, Addai KN, Prah S, Temoso O, Ng'ombe JN (2023) Hand pollination, mass spraying, and hybrid seedlings: do these technologies affect the welfare of smallholder cocoa farmers in Ghana? Rev Dev Econ 1–30. https://doi.org/10.1111/rode.13014

  • Asiedu RA, Amaning KA, Koomson B, Gyamfi C, & Niang A (2023) Assessing land degradation in Amansie West District: a surface mined area in Ghana.

    Google Scholar 

  • Baddianaah I, Gordon N, Baatuuwie BN (2021) Livelihood implications of artisanal gold mining in farming communities: insight from the Wa East District Ghana. Ghana J Geograph 13(3):85–120

    Article  Google Scholar 

  • Baffour-Kyei V, Mensah A, Owusu V, Horlu GS (2021) Artisanal small-scale mining and livelihood assets in rural southern Ghana. Res Policy 71:101988

    Article  Google Scholar 

  • Baruch Y (1999) Response rate in academic studies-A comparative analysis. Human Relat 52(4):421–438

    Article  Google Scholar 

  • Boafo J, Paalo SA, Dotsey S (2019) Illicit Chinese small-scale mining in Ghana: beyond institutional weakness? Sustainability 11(21):5943

    Article  Google Scholar 

  • Boateng DO, Nana F, Codjoe Y, Ofori J (2014) Impact of illegal small-scale mining (Galamsey) on cocoa production in Atiwa district of Ghana. Int J Adv Agric Res 2:89–99

    Google Scholar 

  • Di Falco S, Veronesi M, Yesuf M (2011) Does adaptation to climate change provide food security? A micro-perspective from Ethiopia. Am J Agric Econ 93:825–842. https://doi.org/10.1093/ajae/aar006

    Article  Google Scholar 

  • Ding Z, Abdulai A (2020) An analysis of the factors influencing choice of microcredit sources and impact of participation on household income. J Int Dev 32:505–525. https://doi.org/10.1002/jid.3466

    Article  Google Scholar 

  • Djokoto JG, Zigah DE (2021) Gross margin of smallholder palm fruit processors with non-allocable inputs in Assin north and south districts in Ghana. J Agri Food Res 5:100177

    Google Scholar 

  • Fleming DA, Measham TG, Paredes D (2015) Understanding the resource curse (or blessing) across national and regional scales: theory, empirical challenges and an application. Aust J Agric Resour Econ 59(4):624–639

    Article  Google Scholar 

  • Ghana Composite Budget (2022) Composite Budget for 2022-2025: Programme Based Budget Estimates for 2022- Amansie West District. https://mofep.gov.gh/sites/default/files/composite-budget/2022/AR/Amansie_West.pdf

  • Ghana. Statistical Service (2021) 2021 Population & housing census: demographic, social, economic & housing characteristics. Ghana Statistical Service

    Google Scholar 

  • Hausermann H, Ferring D (2018) Unpacking land grabs subjects, performances and the state in Ghana’s ‘small-scale’ gold mining sector. Dev Chang 49(4):1010–1033

    Article  Google Scholar 

  • Heckman J (2013) Sample selection bias as a specification error. Appl Economet 31(3):129–137

    Google Scholar 

  • Hou L, Min S, Huang Q, Huang J (2023) Farmers’ perceptions of drought-severity and the impacts on ex-ante and ex-post adaptations to droughts: evidence from maize farmers in China. Agric Water Manag 279:108180

    Article  Google Scholar 

  • Huang P, Kabir MH, Zhang Y (2017) Does corporate derivative use reduce stock price exposure? Evidence from UK firms. Quart Rev Econ Financ 65:128–136

    Article  Google Scholar 

  • Issifu SEIBA (2022) Effects of artisanal small-scale mining on household welfare: perceptions and coping strategies of farm households in Asutifi North District in The Ahafo Region. Master of Philosophy Dissertation, University for Development Studies, Tamale, Ghana

  • Jimenez-Soto EV, Brown RP (2012) Assessing the poverty impacts of migrants’ remittances using propensity score matching: the case of Tonga. Econ Rec 88(282):425–439

    Article  Google Scholar 

  • Jnr SD, Cieem G, Ayensu-Ntim A, Twumasi-Ankrah B, Barimah PT (2016) Effects of loss of agricultural land due to large-scale gold mining on agriculture in Ghana: the case of the Western Region. Br J Res 2(6)

  • Kassie M, Shiferaw B, Muricho G (2010) Adoption and impact of improved groundnut varieties on rural poverty: evidence from rural Uganda. In: Environment for Development Discussion Paper-Resources for the Future (RFF), pp 10–11

    Google Scholar 

  • Khandker SR, Koolwal GB, Samad HA (2009) Handbook on impact evaluation: quantitative methods and practices. World Bank Publications

    Book  Google Scholar 

  • Kiwanuka-Lubinda RN, Ng'ombe JN, Machethe C (2021) Impacts of interlocked contractual arrangements on dairy farmers’ welfare in Zambia: a robust Bayesian instrumental variable analysis. Agrekon 60:10–30. https://doi.org/10.1080/03031853.2021.1875854

    Article  Google Scholar 

  • Kotsadam A, Tolonen A (2016) African mining, gender, and local employment. World Dev 83:325–339

    Article  Google Scholar 

  • Läpple D, Hennessy T, Newman C (2013) Quantifying the economic return to participatory extension programmes in Ireland: an endogenous switching regression analysis. J Agric Econ 64(2):467–482

    Article  Google Scholar 

  • Luan J, Chen JC, He ZW, Li Q, Qiu H (2015) The education treatment effect on the non-farm income of Chinese western rural labors. China Agri Econ Rev 7(1):122–142

    Article  Google Scholar 

  • Ministry of Food and Agriculture (2018) Investing for Food and Jobs: An agenda for transforming Ghana’s agriculture (2018 - 2021). https://mofa.gov.gh/site/images/pdf/National%20Agriculture%20Investment%20Plan_IFJ.pdf

  • Nkonya E, Davis K (2008) The statistical challenges of attributing impacts of demand driven advisory service programs and farmer field schools in Africa. In: Workshop on rethinking impact: understanding the complexity of poverty and change Colombia

  • Ocansey, I. (2013). Mining impacts on agricultural lands and food security: a case study of towns in and around Kyebi in the Eastern Region of Ghana.

    Google Scholar 

  • Ofosu G, Dittmann A, Sarpong D, Botchie D (2020) Socio-economic and environmental implications of Artisanal and small-scale mining (ASM) on agriculture and livelihoods. Environ Sci Pol 106:210–220

    Article  Google Scholar 

  • Osumanu IK (2020) Small-scale mining and livelihood dynamics in North-Eastern Ghana: sustaining rural livelihoods in a changing environment. Prog Dev Stud 20(3):208–222

    Article  Google Scholar 

  • Ploeg FVD (2011) Natural resources: curse or blessing? J Econ Lit 49(2):366–420

    Article  Google Scholar 

  • Wei ZHU, Qi LX, Wang RM (2022) The relationship between farm size and fertilizer use efficiency: evidence from China. J Integr Agric 21(1):273–281

    Article  Google Scholar 

  • Wilson ML, Renne E, Roncoli C, Agyei-Baffour P, Yamoah Tenkorang E (2015) Integrated assessment of artisanal and small-scale gold mining in Ghana—Part 3: Social sciences and economics. Int J Environ Res Pub Health 12(7):8133–8156

    Article  Google Scholar 

  • Wireko-Gyebi RS, Asibey MO, Amponsah O, King RS, Braimah I, Darko G, Lykke AM (2020) Perception of small-scale miners on interventions to eradicate illegal small-scale mining in Ghana. SAGE Open 10(4):2158244020963668

    Article  Google Scholar 

  • Wongnaa CA, Nti EK, Acheampong PP, Bannor RK, & Babu SC (2021) The shift from crop production to mining activities in arable lands: evidence from Ghana.

    Google Scholar 

  • Worlanyo AS, Alhassan SI, Jiangfeng L (2022) The impacts of gold mining on the welfare of local farmers in Asutifi-North District in Ghana: a quantitative and multi-dimensional approach. Res Policy 75:102458

    Article  Google Scholar 

  • Yahya K (2020) Impact of sustainable land resource management on households income. The Case of Janamora Woreda, North Ethiopia (Doctoral Dissertation)

    Google Scholar 

  • Yamane T (1967) Elementary sampling theory prentice inc. Englewood cliffs. NS, USA 1:371–390

  • Zvarivadza T, Nhleko AS (2018) Resolving artisanal and small-scale mining challenges: Moving from conflict to cooperation for sustainability in mine planning. Resour Pol 56:78–86

Download references

Funding

Self-funded as authors did not receive funding from anywhere.

Author information

Authors and Affiliations

  1. Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Private Mail Bag, University Post Office, Kumasi, Ghana

    Camillus Abawiera Wongnaa & Christopher Kudzinawu

  2. Department of Environment and Sustainability Sciences, Faculty of Natural Resources and Environment, University for Development Studies (UDS), Tamale, Ghana

    Emmanuel Kwame Nti

  3. International Food Policy Research Institute, 1201, Eye Street, NW, Washington, DC, USA

    Suresh Babu

Authors
  1. Camillus Abawiera Wongnaa
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Christopher Kudzinawu
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Emmanuel Kwame Nti
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Suresh Babu
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

CAW was responsible for designing the study, data collection and preparation of the manuscript. CK conceived the idea and was responsible for analysis of the data. EKN and SB provided technical advice in formulation of the research objectives and the review of the manuscript. All authors read and approved the final manuscript.

Corresponding author

Correspondence to Camillus Abawiera Wongnaa.

Ethics declarations

Ethics approval and consent to participate

Ok

Consent for publication

Ok

Competing interests

The authors declare no competing interests.

Additional information

Publisher’s Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Wongnaa, C.A., Kudzinawu, C., Nti, E.K. et al. Does participation in mining activities affect the profitability of food crops production? Evidence from Ghana. Miner Econ (2023). https://doi.org/10.1007/s13563-023-00411-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s13563-023-00411-0

Keywords

JEL classification

Search

Navigation