Measurement of the impact of buffer stock intervention on food security of smallholder farmers in Ghana by means of the nutrient-content household dietary diversity index

Buffer stock intervention is a hedging policy against income losses due to price fluctuations, primarily from farming activities, notably the production of cereals. This paper investigates the impact of buffer stock intervention on smallholder farmers' food security in Ghana. To this end, the motivation was to estimate the nutrient-content household dietary diversity index (NHDDI) based on a cross-sectional data set. We apply Coarsened Exact Matching, Weighted Least Squares, and Weighted Ordered Probit analysis as econometric methods. We find that marital status, gender, education, and income positively impact food security, while the household size and the number of children under five years old have a negative impact. We also find that income and education, which have a positive direct impact on food security, have a mitigating effect on the negative impact of children under five years. The most important finding is that participation in the buffer stock operations improves the household food security of participating smallholder farmers. NAFCO in its present form has positive effects on food security for participants, positive but smaller price effects for non-participating smallholder farmers, and negative effects for consumers at large. The latter effect could be reduced by implementing a buffer stock policy consisting of buying during the glut and selling when supply is tight.