Estimating financing gaps in rice production in Southwestern Nigeria

Abstract

Rice is one of the most valuable cereal crops cultivated and consumed all over the world. It is a staple food in several African counties, Nigeria as an example and constitutes a large portion of the diet on a regular basis (Lu et al. 2018). Rice is cultivated in mostly all agro-ecological zones in Nigeria but on a relatively small scale. As asserted by FAO (2015), Nigeria is the continent's leading consumer of rice, one of the largest producers of rice in Africa and simultaneously one of the largest rice importers in the world. Rice is an important food security crop, it is an essential cash crop for it is AbstractThis study analysed the financing gaps relative to production frontier of rice farmers in Southwestern Nigeria. A multistage sampling technique was used to collect crosssectional data from 360 rice farmers selected from three states in the region. A Cobb-Douglas stochastic frontier and an adapted form of Harrod-Domar (HD) growth model was employed to determine the financing gap required the farmers to be at the frontier level. The empirical results of the frontier model show that quantity of labour, quantity of rice as planting material and herbicides were statistically significant in explaining the variations in the efficiency of rice production in Nigeria. However, age, gender, farming experience, household size, access to credit, access to information, adoption of improved variety and location of rice farmers as sources of technical inefficiencies. As revealed by the result of the HD growth model, the average amount of credit per season that farmers had access to was, 38,630.56 naira (₦) while the mean financing in the form of credit required to produce at the frontier level was ₦193,626.50, showing a financing shortfall of about 80%. As unravelled by the result of the study, it can thus be concluded that technical efficiency of rice farmers can be improved by ameliorating access to timely credit and agricultural information for improving rice productivity. These findings suggest that filling the financing gap of smallholder rice farmers will improve rice productivity in Nigeria. The study, therefore, recommends that strengthening the existing technology by building farmers' capacity on farm management practices would be the surest means of improving rice productivity growth in Nigeria. This would not only contribute to the intensification of rice production in Nigeria to meet its increasing rice demand, but also improve rice farmers' productivity and their households' incomes.

Analysis of profit efficiency among smallholder sheep farmers of N8 development corridor Free State, South Africa

“…This result is consistent with Ojo et al (2020) who found gender to have positive influence on profit inefficiency among smallholder rice farmers in Nigeria. However, Bahta and Baker found a negative relationship between gender and profit inefficiency.…”

“…Similar studies in Africa (e.g. Tijani et al 2006;Mawa et al 2014;Bahta and Baker, 2015;Ojo et al 2020) have analysed the profit efficiency of smallholder farmers. However, there is limited information available in South Africa on the profit efficiency of smallholder sheep farmers, thereby, making this study very relevant.…”

“…This result is consistent with the findings of Nganga et al (2010). However, Ojo et al (2020) found household size to positively influence smallholder rice farmers in Nigeria.…”

Does the Incidence of COVID-19 Pandemic Affect Rice Yield? Lessons from Southeast Nigeria

“…It has become a staple food in Nigeria such that every household, both the rich and the poor, consumes a great quantity [14]. A combination of various factors seems to have triggered the structural increase in rice consumption over the years with consumption broadening across all socioeconomic classes, including the poor [15]. The rising demand could be as a result of increasing population growth and income level coupled with the ease of its preparation and storage [14].…”

Sustainability and Determinate of Farmers’ Mitigation Strategies to Greenhouse Gases Emission: a case in Rice Agric-Food System of Nigeria

“…It has become a staple food in Nigeria such that every household; both the rich and the poor consume a great quantity. A combination of various factors seems to have triggered the structural increase in rice consumption over the years with consumption broadening across all socio-economic classes, including the poor [23]. Rising demand could be as a result of increasing population growth and income level coupled with the ease of its preparation and storage.…”