Economic Analysis of Rubber Agroforestry Systems in Ghana

Even though rubber contributes massively to Ghana’s economy, smallholder rubber farmers’ inability to wait for about 6-8 years to see the benefits constrains establishment and expansion of the rubber subsector. To lessen the waiting time to the benefits, an option exists to intercrop rubber with food crops. Cost benefits analysis of rubber/plantain intercropping system under different treatments on two experimental plots for sole crop plantain (P) and three intercropping treatments consisting of one (PR), two (PPR) and three (PPPR) rows of plantain each between two rows of rubber each were carried out to assess the most viable. Analysis using discounted cash flow was used to determine the benefit/cost ratio (BCR), net present value (NPV) in addition to internal rate of return (IRR) at 25 % interest rate. All the rubber/plantain intercropping systems (PR, PPR and PPPR) were found to be profitable from the results. The highest return of GHȻ40, 331 (USD 9,379) per hectare from plantain over the period of two years was realized from the PPPR cropping system. Additional analysis performed to assess the profitability of rubber/plantain intercropping systems by varying the price of plantain, discount rate and the total cost of production showed that the systems were all profitable. The PPPR was the most profitable with the highest income to smallholder farmers. Extension education by the government through the Ministry of Food and Agriculture and Ghana Rubber Estates Limited and support to rubber farmers to access credit can help in farmers’ adoption of rubber agroforestry system.