Financial analysis of pigeonpea-yam cropping system options and implications on profitability of smallholder farmers in Ghana

A study conducted in the Forest and Forest-Savannah transition zones of Ghana during the 2018–2019 cropping seasons to investigate the profitability of integrating pigeonpea into yam described as a pigeonpea-yam cropping system consisted of; yam planted with pigeonpea in alleys (PA) and as a border (PB) compared with sole yam (SY). PA, PB, and SY plots were further divided into sub-plots, and subjected to three inorganic fertilizer treatments of 0–0–0, 23–23–30, 45–45–60 N–P2O5–K2O kg ha−1 as no, half, and full fertilizer rates, respectively. Three farmer-practiced scenarios of access to no, half, and full recommended fertilizer rates were evaluated with profitability indicators of Income Equivalent Ratio, Net Present Value (NPV) and Benefit-Cost Ratio (BCR). The results revealed that planting yam in PA with half and full fertilizer rates resulted in IRR (the discounted rate at which NPV equals zero) of 5.67 and 5.90 respectively at Fumesua and 5.66 and 5.88 respectively at Ejura in both seasons. Interestingly, planting yam in PA with half and full fertilizer rates resulted in a similar BCR. Even when yams were planted without fertilizer, the presence of the pigeonpea resulted in a better BCR than when half and full fertilizer rates were used on SY for both locations and seasons. Thus, adopting the proposed technologies even without fertilizer will be profitable for each Gh₵ 1.00 spent. As such, the Pigeonpea-yam cropping system can be promoted as a viable option for soil fertility management and a readily available source of stakes for sustainable yam production.