This study assessed the determinants of intensity of adoption of Improved Rice Varieties (IRVs) and the effect of market participation on farmers' welfare in Nigeria using the Tobit and Heckman two-stage models, respectively. The sample consists of crosssectional data of 600 rice farmers selected randomly from three notable rice producing States in Nigeria. The variables that positively and significantly influenced the intensity of IRVs adoption include income from rice production, membership of a farmers' organization, and the distance to the nearest sources of seed, cost of seed, yield and level of training. Gender of household head, access to improved seed, years of formal education, and average rice yield were those variables that are positive and statistically significant in increasing the probability that a farmer would participate in the market. The result further suggests that any increase in the farmers' welfare is conditional on the probability of the farmer participating in the rice output markets. In addition, higher yield, income from rice production, gender of household head, and years of formal education are the variables that are positive and statistically significant in determining households' welfare. Therefore, it is recommended that formation of associations among the rural farmers should be encouraged. Access to seed and information about the IRVs are also essential to increase the intensity of its adoption. Programmes to improve contact with extension agents, increased access to credit, raising educational background and increasing the area devoted to cultivating IRVs are the factors to be promoted in order to increase market participation and hence improve the welfare of rural households.
HighlightsThe productivity and welfare effects of an e-voucher subsidy program are evaluated.Instrumental variable regression employed to control for endogeneity.The program is effective in improving productivity and welfare outcomes.No heterogeneity effects based on gender and farm land size.The program has a modest benefit–cost ratio.
Using household survey data from a sample of about 850 households selected from six States in southwest Nigeria, this paper analyses the effects of the adoption of improved cassava varieties (ICVs) on asset ownership among smallholder farmers. The results of the linear regression with endogenous treatment effects showed that adoption of ICVs is positively related to asset ownership. The results further showed that ICVs had greater impact on asset ownership among female-headed households. The impact analysis using propensity score matching (PSM) showed a significant and positive effect of adoption of ICVs on asset ownership and a negative effect on asset poverty. The empirical results suggest that improved agricultural technologies can play a key role in strengthening asset ownership of smallholder farmers for increased agricultural productivity and income generation.
The formation of agricultural cooperatives has been widely promoted as an agricultural development policy initiative to help smallholder farmers cope with multiple production and marketing challenges. Using a nationally representative survey dataset of smallholder maize producers from rural Nigeria, this study assesses the impact of agricultural cooperative membership on technical efficiency (TE). We based our estimation approach on the combination of a newly developed sample selection stochastic production frontier model with propensity score matching to control for possible selectivity biases from both observables and unobservables. We estimate stochastic meta-frontiers to examine TE differences between cooperative members and non-members. Our results reveal that TE levels of members are consistently higher than that of non-members. This calls for continued policy incentives targeted at encouraging farmers to form as well as participate in agricultural cooperatives.
In response to the global food crisis of 2008, the United States Agency for International Development (USAID) funded an emergency rice initiative (ERI) program to boost rice production in Nigeria. The supplementary seed voucher program, implemented alongside the ERI adopted a randomized control trial to grant randomly selected farmers access to subsidized certified improved rice seed using the seed voucher system (SVS). In this study, we provide a consistent estimate of the impact of the SVS on Poverty reduction, using mixed methodologies such as inverse propensity score weighing (IPSW) and the local average treatment effect (LATE) estimation techniques. Results show that the SVS has a positive and statistically significant impact on annual household income and per capita consumption expenditure. This study shows that availability of good quality seed at an affordable price can raise agricultural productivity, increase household income and contribute to poverty reduction.
The increasing rate of youth unemployment in Africa, particularly in Nigeria, remains among the challenges to social and economic stability. Accordingly, the Nigerian government implemented several interventions, including the Youth-in-Agribusiness (YIA) program to reduce youth unemployment. However, the effect of these programs on gainful employment creation is yet to be documented. Therefore, this study examined the impact of the YIA program on creating gainful employment among the youth. Multistage random sampling was used to obtain cross-sectional data from 668 youth in Southwestern Nigeria. Propensity score matching and endogenous switching probit techniques were used for the estimations. Results indicated that variables such as educational attainment, access to training, non-agricultural activity, membership in a youth organization, access to credit, productive resources, and youth location were significant and positively influenced youth decision to participate in the YIA program. Furthermore, participation in the YIA program has a significant positive impact on gainful employment among the youth. Therefore, the study recommends that strengthening social capital such as youth organization, credit scheme (financed by private and government), vocational training, and educational system is vital in enhancing participation in the YIA program and eventually gainful employment of youth.
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