Determinants of Agricultural Commercialization Among Smallholder Rice Farmers in Ekiti-State, Nigeria.

Abstract

The purpose of the paper is to examine the determinants of agricultural commercialization among smallholder rice farmers in Ekiti-state, Nigeria. Examining factors influencing agricultural commercialization among smallholder rice farmers is important for boosting rice production and making price of rice affordable. However, study focusing on factors influencing agricultural commercialization among smallholder rice farmers are very few. Hence the need for this study. The paper used cross sectional data obtained from a simple random sampling where a sample of 420 smallholder rice farmers was obtained. Descriptive statistics and double hurdle regression analysis were employed as analytical methods to obtain results on respondents’ socioeconomics characteristics and factors influencing agricultural commercialization. The findings indicate that men engaged more in rice production than women irrespective of their commercialization status and commercializing respondents produce more tonnes of rice than their non-commercializing counterparts. Some of the determinants of the decision to commercialize and intensify commercialization include: education, earning income from other crops, access to credit, being member of agricultural production group and reduced cost of transportation. Therefore, in order to boost rice production there is the need for government and NGOs to support rice farmers (particularly the young male) in terms of improving their level of education and access to credit via group lending which would promote group formation. Also, efforts in the direction of reduction of transaction costs via good road networks, subsidizing price of means of transport and as well as mobile phone and improving extension services delivery should be prioritized.