Plantation, outgrower and mediumscale commercial farming in Ghana: which model provides better prospects for local development?

Policy brief 82
by Joseph Yaro, Joseph Teye and Gertrude Torvikey
May 2016

Different agricultural commercialisation models produce different local development benefits. African governments are making important policy choices in their quest to modernise agriculture, with some promoting largescale farming on plantations while others promote small- or medium-scale commercial farming. This study examined three agricultural modernisation models in three areas of Ghana: plantation, outgrower and medium-scale commercial farming. Each has different implications for land, labour, employment, local economic linkages, food security and livelihood outcomes.

The plantation and commercial models resulted in more land concentration while the outgrower model produced the least. In terms of employment, the plantation and outgrower models employed more workers than the commercial model but the latter had better-paid workers at the lower level of employment. Although workers in the outgrower model were paid less, there were no significant gender differences in wages received by men and women. The other two models paid male workers much more than female workers. Food security is better in the outgrower area than in the plantation and commercial farming areas.

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