Economics of Cowpea Seed Contracting in Ghana

Cowpea is a key legume in Ghana, providing nutrition and income for smallholder farmers. Seed contracting — agreements between farmers and seed companies — is an emerging model for improving seed quality and distribution. This study examines the economics of cowpea seed contracting, focusing on farmer incentives, company profitability, and market outcomes. The broader challenge is that seed systems in Ghana remain underdeveloped, limiting access to quality seed. Contracting offers a pathway to strengthen seed systems, but evidence is needed to demonstrate its economic viability. This research situates seed contracting within the broader discourse on agricultural commercialization.

Survey data was collected from farmers and seed companies engaged in contracting. Econometric models were applied to measure profitability, adoption rates, and welfare outcomes. Qualitative interviews provided insights into farmer experiences with contracting and company perspectives on profitability. Comparative analysis was conducted between contracted and non-contracted farmers. This dual approach ensured findings were both statistically rigorous and contextually grounded.