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Bananas and Food Security - Bioversity International

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Afrique / Africa : A. Mensah-Bonsu et al.<br />

Table 5. Summary of estimated returns to treatments tested on-farm at Nyinahin<br />

<strong>and</strong> Gyedu (1995-1997).<br />

Benefit in Cedis a per 0.1 ha<br />

Site Measureb Treatment 1 Treatment 2 Treatment 3 Treatment 4<br />

Nyinahin NPV 117,017 268,827 -2,688 280,789<br />

BCR 1.42 1.80 1.00 1.73<br />

Gyedu NPV 269,965 248,634 31,731 316,521<br />

BCR 2.27 1.96 1.10 2.00<br />

Farm average NPV 193,491 258,730 14,520 298,655<br />

BCR 1.79 1.87 1.04 1.85<br />

a The prevailing lending rate (interest rate) for loans in the agricultural sector is between 40-45%.<br />

The peak interest rate of 45% was used as the compound factor to calculate the NPV <strong>and</strong> BCR.<br />

b NPV: Net present value.<br />

BCR: Benefit cost ratio.<br />

strategy to be considered for adoption by farmers, when use of untreated material <strong>and</strong><br />

traditional weeding practices (treatment 1) gave a higher BCR of 1.79.<br />

Estimation of compensation<br />

The increase in return to a farmer to compensate for the costs of learning <strong>and</strong> changing<br />

to new production techniques were estimated for two situations: firstly, where the farmer<br />

adopted the treated planting material but maintained his usual crop management<br />

practices for planting <strong>and</strong> weeding (Table 6); secondly, where the farmer incorporated<br />

treated planting material <strong>and</strong> new management practices in his/her production<br />

(Table 7).<br />

From Table 6, it can be seen that farmers who used treated suckers but maintained<br />

traditional management practices in Nyinahin were compensated with a present value of<br />

profit of 1.52 million Cedis/ha <strong>and</strong> a net benefit of 3.71 Cedis for every 1.00 Cedis spent.<br />

In contrast, at Gyedu it was not worthwhile for farmers to adopt the use of treated<br />

suckers with traditional weeding practices (loss of 213,300 Cedis/ha compared with<br />

farmers material, farmers management). This result can be explained by the fact that<br />

there was little difference in yields for treatments 1 <strong>and</strong> 2 at Gyedu, due to relatively<br />

good management practices, but the use of treated suckers incurred extra costs for<br />

treatment 2. For the two sites combined, there was a compensation of 652,400 Cedis/ha<br />

<strong>and</strong> a net incremental benefit of 2.28 Cedis for every 1.00 Cedis spent, to a farmer using<br />

treated suckers while maintaining normal weeding practices, indicating that this<br />

strategy was worth adopting.<br />

At Nyinahin, the compensation to a farmer using treated suckers <strong>and</strong> improved<br />

management practices with intercropping, was approximately 1.64 million Cedis/ha,<br />

compared with 465,570 Cedis/ha in Gyedu. On average, there was a compensation of<br />

1.1 million Cedis/ha with a BCR of 2.08.<br />

Comparing the estimated compensation for the two different strategies for the<br />

combined sites, the adoption of treated material <strong>and</strong> improved weeding is most<br />

715

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