Rice production is an important economic activity among smallholder farmers in Ghana serving as a source of income and household food security. The current production system of rice depends on the use of pesticides to control harmful pests and diseases, a practice that poses environmental and health risks (Tetteh Anang, 2015). A pesticide is any substance or mixture of substances intended for preventing, destroying, or controlling any pest (Frimpong et al., 2012). According to Fianko (2011), the commonly used pesticides in Ghana are insecticides, herbicides, fungicides, fumigants, fertilizers, and growth regulators. But most pesticides are toxic, hence their use is highly regulated internationally, nationally, and regionally by regulations and conventions (Alabi et al., 2014). However, pesticides that are banned for agricultural purposes in 52 countries due to their hazardous nature are being used in Ghanaian agriculture (Glover-Amengor & Tetteh, 2008). Although the extensive use of pesticides in Ghana has contributed greatly to the increased food supply, farmers’ dependence on them, has caused tremendous harm to human health, agricultural land, ground, and surface water, as well as biodiversity. In 2010, 15 farmers died from suspected pesticide poisoning in the Upper East region. Most of these deaths resulted from the misuse, poor handling, and storage of pesticides (PAS and Partners, 2012).

The Aveyime community, located in the North Tongu District of the Volta Region, is one of the major rice-producing sites in Ghana. The area cultivated to rice forms between 90 and 95 percent of the total irrigable area, while the remaining areas are put under vegetables, especially during the minor season when available water becomes limited (Amoatin & Acheampong, 1997). In the past, the production of rice in this community made use of organic pesticides to control weeds, insects, and diseases. But with the introduction of pesticides, many farmers are now heavily reliant on these chemicals which are sourced from the open market. The farmers focus on their immediate direct costs of pesticide usage. The direct costs which include the cost of pesticide purchase, its application, and materials used in an application, often ignore the hazardous effects of pesticide use on human health, the environment, and society. Boussemart et al. (2010) review on the spread of pesticides in agriculture systems indicates that farmers do not bear any costs associated with negative environmental externalities and do not reap any direct benefit from positive ones. Over the past years, few research works have been carried out on the use of pesticides in rice production in Ghana. Ragasa et al.'s (2013) survey reveals that the adoption rate of pesticides, especially herbicides among farmers was high across all the rice ecologies in Ghana. Fianko (2011) also indicates that farmers have overused pesticides. He argues that the increased use of pesticides poses a health risk to farmers and consumers. Nevertheless, both research works did not estimate the external costs related to pesticide usage among smallholder farmers.

Source: Edem, A.J. & Takeshi, M. 2017. A comprehensive study of the negative externalities of increased use of chemical pesticides in rice production: A case study of smallholder farmers in the Aveyime Community. Ghana. DOI: 10.1111/dpr.12356

By definition and the use of the characteristics of the good, evaluate the type of good produced by smallholder farmers in the Aveyime community. (5 marks)

Analyze the type of externality imposed by smallholder farmers in the Aveyime community and critically evaluate the social costs to the community. (8 marks)

 Analyze the benefits gained by society from the use of pesticides in Ghana. 

Use the following statement to graphically illustrate the situation: “Boussemart et al.’s (2010) review on the spread of pesticides in agriculture systems, indicates that farmers do not bear any costs associated with negative environmental externalities”. 

Propose and evaluate five possible policies that might help reduce the social costs imposed by the use of pesticides in Ghana. 

Given the information gathered on externalities, provide recommendations and alternative ways to address this externality problem in Ghana.