Impacts of Industrial Crop Production by Smallholders on Household Food Security in Ghana: Evidence From the Oil Palm Sector

ABSTRACT

An increase in industrial crop production has important implications for food security, the environment and rural development in major growing areas of the world. This study assessed the impact of smallholder industrial crop production on the food security of agricultural households. The need for the study arose from the resurgence of debate on the potential negative impacts of industrial crop production on the food security and nutrition of agricultural households in sub‐Saharan Africa. A multi‐stage sampling technique was employed to select 416 farm households, comprising 201 oil palm producers and 215 non‐oil palm producers, from the Ashanti and Central Regions of Ghana. The study adopted a mixed‐method approach. Quantitative data were complemented with key informant interviews and focus group discussions to provide contextual understanding of the findings. The impact evaluation was conducted using both the Endogenous Treatment‐Effect Regression (ETR) and Inverse Probability Weighted Regression Adjustment (IPWRA) techniques. Household food security was measured using the Household Food Insecurity Access Scale and the Household Dietary Diversity Score. In addition, food crop production area was used as an outcome variable to capture household production capacity and potential trade‐offs between oil palm and food crop production. The findings indicate that oil palm production has mixed and context‐specific effects on household food security. It improves dietary diversity in both regions, but its effects on food access differ across locations, improving in the Central Region while worsening in the Ashanti Region. In addition, oil palm production reduces food crop production area due to land reallocation. The results highlight important spatial heterogeneity driven by differences in socioeconomic and production conditions.