Agricultural diversification has been identified as one of the mechanisms for managing household food security and poverty in developing economies, because it can spread the risk among multiple production enterprises and provide a range of food items for the households. By examining the integrated farming systems of 608 smallholders in Ghana, this paper presents empirical evidence to support the development of effective strategies that enhance diversified farming systems. The estimated mean diversification indices were 0.45, 0.32 and 0.59 for crop, livestock and crop–livestock diversification systems, respectively. Using the Cragg two-step regression model, this paper shows that the decision to diversify and the extent of diversification are distinct decisions affected by different sets of factors. Likewise, the effect of these factors also varied across the three categories of diversification examined. Careful consideration needs to be given to the selection of factors and the methods for examining the diversification process to avoid confounding recommendations. The findings underscore the importance of households’ access to tillage equipment, fertilizers, credit and market information in encouraging farmers to diversify.

This study examines the impact of financial literacy training on financial inclusion and its intensity using data collected from a randomised control trial. An additive index of financial inclusion is generated from four financial inclusion indicators. After testing for baseline balance and estimating impact, our findings show that beneficiaries of financial literacy training are about 7.2 percentage points more likely to own an account while they are 8.2 percentage points more likely to save. Overall, beneficiaries of financial literacy training had a 9.5 percentage points advantage in receiving financial assistance than their non-beneficiary counterparts. While financial literacy training only showed a significant impact on account ownership for female-beneficiary households, male-beneficiary households also only experienced an impact in their savings behaviour and receipt of financial assistance. Moreover, beneficiaries of financial literacy training are more likely to intensify their financial inclusion and the intensity of inclusion is higher for male and young beneficiary households. The results highlight the need to strengthen financial literacy training in order to close the gender financial inclusion gap.