Economics Impacts of Climate Change on Cereal Production : Implications for Sustainable Agriculture in Northern Ghana

Abstract: This paper investigates the economic impacts of climate change on cereal crop production in Northern Ghana using 240 households comprising maize and sorghum farmers. The Ricardian regression approach was used to examine the economic impacts of climate change based on data generated from a survey conducted in the 2013/2014 farming seasons. Forty-year time-series data of rainfall and temperature from 1974 to 2013, together with cross-sectional data, were used for the empirical analysis. The Ricardian regression estimates for both maize and sorghum showed varying degrees of climate change impacts on net revenues. The results indicated that early season precipitation was beneficial for sorghum, but harmful for maize. However, mid-season precipitation tended to promote maize production. Temperature levels for all seasons impacted negatively on net revenue for both crops, except during the mid-season, when temperature exerted a positive effect on net revenue for sorghum. Our findings suggest that appropriate adaptation strategies should be promoted to reduce the negative impacts of prevailing climate change on cereal crop production