Understanding how policies affect price transmission and incentives for producers and consumers along the complete value chain is a relevant research question due to the more globalized structure of agricultural value chains. In particular, Nigerian agricultural value chains have been targeted by a number of policy decisions. We analyze the import‐oriented palm oil value chain and the export‐oriented cacao value chain, estimating the price distortions from policies and their implications for production incentives at the regional level. For palm oil, due to protective trade policies and domestic initiatives, the nominal rate of protection (NRP) at the farmgate for palm oil producers shows that producers have been protected. NRPs at the border for cacao beans and cocoa products are negative, which may be due to a quality gap, the export market structure, and the concentration of buyers in global markets. Negative NRPs at the farmgate are seen for all regions, showing disincentives in the cacao beans export market reverberate through the domestic market despite domestic support policies. In both value chains, NRPs at farmgate vary across regions partially due to regional policy frameworks and partially due to local conditions impacting price transmission.
Several adaptation strategies to climate change are being practiced by farmers but empirical information on the influence of such practices on crop output is not tested. This study examined farmer's response to climate change problems and the possible effect on crop output. The study area was Akinyele local government from which 100 farmers were randomly selected from 16 villages. Data were collected through oral interviews using questionnaires. The data were analyzed using descriptive and econometric tools. The results show that the decrease in output noticed by farmers was attributed to the changing conditions in the weather, the nature of the soil and soil conservation techniques. Farmers' perceptions on climate change are related to the negative effects such as crop destruction (26 percent) while some of them (42 percent) saw it as being 'supernatural'. The common response (43 percent) is to mitigate its effect by changing the planting date of crops while another 16 percent increased the use of chemicals on the farm. Other adaptation techniques include a decrease in the land area for crops such as maize and an increase of the land area under cassava. The econometric analysis shows that some of the adaptation techniques are having negative impacts on output. The research showed that farmers have varied understanding of climate change. There is a need for proper education and awareness on correct adaptation strategies as well as state support for proper adaptation of such techniques so that food supply will not be jeopardized.
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