Farm level correlation analysis of maize supply and market participation in Kaduna State, Nigeria

Abstract

Maize supply is limited by the structural and institutional constraints that have persisted despite market reforms in the State. The resultant effect is that smallholder subsistence farmers remain mostly outside the mainstream exchange economy, unable to take advantage of the exchange economy. Using data collected from 600 randomly selected maize farmers, descriptive statistics and the multiple regression model, the paper examined the correlation of maize supply and market participation in Kaduna State. Results of the descriptive statistics show that the average age, level of education, number of household members participating in maize production of the farmers were 44 years, 7 years and 9, respectively. The outcome of the multiple regression analysis established that maize supply is directly and significantly responsive to quantity of maize output sold (proxy for market participation) (0.956) and technical efficiency of farmers (739.29) at (p<0.01) of probability. Other significant variables were age (61.653), level of formal education (114.074) and years of farming experience, which were significant at different levels (p<0.05, p<0.01 and p<0.01, respectively). In conclusion, maize supply is directly and significantly responsive to market participation and technical efficiency of farmers. Maize farmers can increase commercialization through contract farming and produce buying centres. There is also the need for continuous government support to the agricultural sector.