Exploring the linkages between on-farm enterprise diversification and food security in Northern Ghana

Many empirical studies have examined the benefits of agricultural diversification, although they have also acknowledged that agricultural specialization can lead to some favorable outcomes. This is especially true as changing climates affect agricultural production and imperil rural lives. Therefore, implementing on-farm diversification is essential for strengthening resilience to climatic shocks in agricultural production. In this study, we analyze the factors that influence the level of diversification in crop and livestock enterprises in rural households in Northern Ghana, and how this diversification affects food security outcomes (measured as household dietary diversity score). The study used data collected from 1284 farming households by International Food Policy Research Institute (IFPRI), as part of the AFRICA RISING project. A multivariate Tobit regression coupled with seemingly unrelated regression models (as a robustness check) were applied to examine the joint determinants of crop and livestock diversification, while a two-stage residual inclusion approach was used to estimate the conditional effect of each enterprise diversification on food security. We observed that extension services, farmer groups, and access to irrigation facilities influence the extent of diversification in both enterprises. Moreover, higher diversification in either crop or livestock enterprise improved households' food security outcomes. Nevertheless, households that combine a wide variety of crops with a moderate level of livestock diversification produced the greatest food security outcomes. We advocate that policymakers prioritize efforts to expedite the development of various farming techniques, particularly on-farm diversification in rural farming communities. These initiatives will promote households' resilience to the challenges of climate change, and consequently improve food security.