Linkage Effects of Rural Non-Farm Income Diversification on Poverty Reduction among Farm Households in Southeast, Nigeria

doi:10.21275/v5i5.nov163185

Cited by 3 publications

(1 citation statement)

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“…In line with these findings, Odoh et al (2020) found a lower level of income generation from farm activities than non-farm activities. Odoh and Nwibo (2016) also found that in Nigeria non-farm sector is a major contributor to employment and income generation of rural households, contributing up to 63% of household income.…”

Section: Factors Influencing Ict and Access To Creditmentioning

confidence: 97%

The impact of credit accessibility and information communication technology on the income of small-scale sugarcane farmers in Ndwedwe Local Municipality, KwaZulu-Natal Province, South Africa

Zulu,

Hlatshwayo,

Ojo

et al. 2024

Front. Sustain. Food Syst.

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IntroductionAccess to credit and information and communication technology (ICT) plays a pivotal role in enhancing the practices of small-scale sugarcane farmers, impacting their financial, social, and economic wellbeing. However, many small-scale farmers need help accessing these resources, thereby affecting their ability to generate sustainable income. This study aimed to assess the factors influencing the adoption of ICT and access to credit and their subsequent impact on small-scale farmers' income.MethodsEmploying a multistage sampling technique, 300 small-scale farmers were selected as participants in the study. The recursive bivariate probit regression model was used to assess the factors affecting adoption ICT and a selectivity-corrected ordinary least square regression model was utilized to estimate the synergistic effect of ICT adoption and access to credit on the income of small-scale sugarcane farmers.Results and discussionThe findings revealed that approximately 77% of small-scale farmers had access to credit, while more than 80% had adopted ICT. The results derived from the recursive bivariate probit (RBP) regression model indicated that access to credit, education, and extension support positively and significantly influenced the adoption of ICT. Conversely, marital status and non-farm income exhibited a negative and significant influence on the adoption of ICT. Gender and marital status were positively and significantly associated with access to credit, whereas age, education, and non-farm income showed a negative and significant relationship on access to credit. Subsequently, a selectivity-corrected ordinary least square regression model analysis revealed that factors such as gender, marital status, extension, government support, and transportation costs positively and significantly influenced farmer's income. In contrast, education, employment status, and non-farm income exhibited a negative and significant influence on income.Conclusion and recommendationsThe study concludes that socio-demographic factors, such as gender, marital status, extension support, government support, and transportation costs, positively contribute to farmers' income. Small-scale sugarcane farmer involvement in other non-farm activities is associated with reduced farm income. This implies that farmers' livelihoods options are reduced as they can only focus on sugarcane development as a source of income. There is a pressing need to educate small-scale farmers on ICT and provide them with access to agricultural credit. Additionally, extension workers should offer advisory support to small-scale farmers requiring assistance in accessing agricultural credit. There is a need to train sugarcane farmers on different agricultural income generating activities to reduce their over-reliance on sugarcane development. By addressing the identified socio-demographic factors and implementing targeted policy interventions, stakeholders can foster an enabling environment for small-scale farmers to thrive, ultimately contributing to the sustainable development of the sugarcane sector and the broader agricultural landscape in South Africa.

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Section: Factors Influencing Ict and Access To Creditmentioning

confidence: 97%

The impact of credit accessibility and information communication technology on the income of small-scale sugarcane farmers in Ndwedwe Local Municipality, KwaZulu-Natal Province, South Africa

Zulu,

Hlatshwayo,

Ojo

et al. 2024

Front. Sustain. Food Syst.

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Beyond Elite Bargains: Building Democracy from Below in Uganda

King

Hickey

2015

SSRN Journal

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Determinants of poverty among rural farming households in Maiha Local Government Area, Adamawa State, Nigeria

Dia

Oaya

Joshua

2023

Agricultura Tropica Et Subtropica

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Poverty is a critical factor affecting subsistence of farmers in Nigeria, especially in rural areas. The study examined determinants of poverty among rural farming households in Adamawa State, Nigeria. Specifically, the research objectives were to: describe the socio-economic characteristics of the respondents, determine the poverty status of the respondents, and examine the determinants of poverty among the respondents. Primary data used for the studies were generated from 255 respondents, who were selected using a multi-stage random sampling technique. The analytical tools used were descriptive, Foster-Greer-Thorbecke (FGT), and Logit regression models. The findings of the study revealed that the majority (90.98 %) of rural farming household heads were men, married (90.20 %) with a mean age of 38.42 years, educated (76.48 %), with a mean farm size of 2.65 ha and mean household size of 5 people. The majority (85.88 %) of the respondents had no access to credit. The study further revealed that respondents’ distributions by poverty status were 0.42, 0.23, and 0.16 for poverty incidence (Po), poverty depth (P1), and poverty severity (P2), respectively. The result of the Logit regression model revealed that sex, formal education, primary occupation, access to credit, total income, and annual remittances had a positive influence on poverty status, while age, marital status, and household size had a negative influence on poverty status among farming households and were statistically significant at various levels. Hence the study recommends need for the farming households to have access to credit schemes. This could increase the off-farm activities that could generate more income for the household and thereby reduce their poverty.

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Linkage Effects of Rural Non-Farm Income Diversification on Poverty Reduction among Farm Households in Southeast, Nigeria

Cited by 3 publications

References 6 publications

The impact of credit accessibility and information communication technology on the income of small-scale sugarcane farmers in Ndwedwe Local Municipality, KwaZulu-Natal Province, South Africa

The impact of credit accessibility and information communication technology on the income of small-scale sugarcane farmers in Ndwedwe Local Municipality, KwaZulu-Natal Province, South Africa

Beyond Elite Bargains: Building Democracy from Below in Uganda

Determinants of poverty among rural farming households in Maiha Local Government Area, Adamawa State, Nigeria

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