Transactions costs and agricultural household supply response of maize farmers in Oyo State of Nigeria

• Published in: Journal of Agriculture and Social Sciences (Pakistan) Vol. 7; no. 2; pp. 69 - 74
• Main Authors: Oladejo, J.A. (Ladoke Akintola Univ. of Technology, Oyo State (Nigeria). Dept. of Agricultural Economics and Extension), Ajetomobi, J.O. (Ladoke Akintola Univ. of Technology, Oyo State (Nigeria). Dept. of Agricultural Economics and Extension), Fabiyi, Y.L. (Ladoke Akintola Univ. of Technology, Oyo State (Nigeria). Dept. of Agricultural Economics and Extension)
• Format: Journal Article
• Language: English
• Published: 01.04.2011
• Subjects: COST ANALYSIS; FARMERS; MAIZE; MARKET PRICES; MARKETING; NIGERIA; PRODUCTION COSTS; SUPPLY FUNCTIONS; SURVEYS; TRANSPORT
• ISSN: 1813-2235

This research is an attempt to determine the magnitude and the direction to which the level of transactions costs influence changes in maize supply in Oyo state of Nigeria. Multistage random sampling technique was employed to select 220 maize producing farmers for the study. Data for the study were collected using structured interview schedule and analyzed using descriptive statistics and estimation of Cobb-Douglas regression model. The result showed that mean age for respondents was 45.8 years, while more than half of them were literates. The major source of finance for the farmers was personal savings, while the mean land area cultivated was 2.2 ha. The results of the regression analysis showed that significant relationships exist between transactions costs and agricultural household supply response in the study area. The average fixed and proportional transaction costs were N2960.82 and N15906.58, respectively.