Abstract

The role of rural and community banks (RCBs) has been laudable in promoting sustainable cocoa farming throughout rural communities in Ghana. Through liquidity mobilization and the ultimate provision of institutional credit to farmers for various agricultural related activities, RCBs could trigger increased revenue and agricultural sustainability. However, pragmatic evidence on this assertion is inadequate and no study has acknowledged the supporting conditions required for RCBs intervention to improve cocoa production in the agricultural sector. In a three-stage sampling procedure, a cross-sectional data from 500 cocoa farmers were used to evaluate the role of RCBs intervention in improving farmers’ sustenance and technical efficiency. In this study, the Heckman’s treatment effect model and stochastic frontier analysis (SFA) were applied to study cocoa farmers’ production efficiency.

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