Agricultural commercialisation, poverty reduction and pro-poor growth: evidence from commercial agricultural development project in Nigeria

Abstract

Commercial Agriculture Development is widely seen as a pathway to agriculture commercialization, poverty reduction and pro-poor growth in developing economies. Using a counterfactual approach, this study assessed the impact of the Commercial Agricultural Development Project (CADP) in Nigeria on poverty status of beneficiaries and non-beneficiaries; determine its impact on commercialization of beneficiaries and non-beneficiaries and ascertain the pro-poor impact of the Project. Data from 1199 households comprising 678 beneficiaries and 521 non-beneficiaries were used for analysis. Propensity score matching was used to select comparable observations which reduced the sample size to 1142 observations: 655 beneficiaries, 487 non-beneficiaries. Data were analyzed using descriptive statistics, propensity score matching technique, Foster-Greer-Thorbecke (FGT) poverty measures, Average Treatment effect on the Treated (ATT) and Poverty equivalent growth rate (PEGR) pro-poor measure. FGT poverty indices were lower for CADP Beneficiaries than the non-beneficiaries. The impact of the CADP on poverty using the income of beneficiaries as proxy showed that those who participated in CADP had their income increased by N446,073.89 ($ 1,239.09) and were better off in terms of their welfare compared to those who did not participate in the program. For the impact on commercialization, the programme led to a statistically significant increase in the commercialization index of beneficiaries. Also the PEGR for non-beneficiaries was higher than the actual growth rate while that of beneficiaries was less than the actual growth rate implying that CADP was not pro-poor. The study concludes that even though the CADP impacted the poverty level of beneficiaries positively, it was not pro-poor hence there is a need to ensure that the poor are effectively targeted in designing development intervention programmes.

Small Farmers and Agricultural Transformation: A Sociological Study in three Villages of India

“…Previous Studies: Finding of some studies e.g. ; Sanchez et al, 2022;Ojong et al, 2022;Etuk & Ayuk, 2021;Ma et al, 2021;Christiaensen & Martin, 2018;Rapsomanikis, 2015;Collier & Dercon, 2014;Christiaensen et al, 2011;Dercon, 2009;Datt andRavallion, 1998 andVon Braun, 1995 revealed that agricultural commercialisation can be a source of poverty reducing, whereas it aims at adopting agriculture not only to produce food for family's consumption, but also for generating better income by professional applying of technologies and machinery that leads to rising agricultural productivity. The Productivity includes agricultural land and labour which both together are more effective at increasing the incomes of small farmers and poor households who are involved in family farming.…”

Nexus of Improving Agricultural Commercialization and Poverty Alleviation in West Africa

“…Agricultural marketing strategies that encourage commercialization can be an effective way of enhancing agricultural efficiency, raising agricultural household income, and, as a result, improving household food and nutrition security [8]. Furthermore, commercialization may have an impact on dietary improvements and nutrition by expanding the availability of self-produced goods and changing gender roles in the home [9]. Because of this, most developing nations, particularly in West Africa, have made it a major priority in their development plans to include initiatives that might boost agricultural production [7].…”

“…Furthermore, to capitalize on the potential benefits of this industry, governments, donor organizations, and even the private sector have made large-scale commercial investments in it [7,10]. There is no question that African agriculture is rapidly commercializing [9]. We analyze literature from the last decades on increasing agricultural sector participation and its implications on poverty reduction and food security in West Africa in this study.…”

Attitudes of farmers toward the farmer card program in Girigondo Village, Pituruh District, Purworejo Regency

“…Agricultural activities must incorporate agricultural development as one of their primary focuses. Agricultural development is expected to contribute to an increase in this sector's production [2]. The agricultural economy will be able to realize its full potential as a result of agricultural development.…”