Enhancing the Access of Rural Households to Output Markets for Increased Farm Incomes

In spite of various agricultural development efforts by national and international agencies, which have brought about technological innovations such as improved crop varieties and animal breeds as well as better production techniques, the resultant increase in farm output has not necessarily transla...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors Adejobi, A O, Amaza, P S, Ayoola, Gbolagade Babalola
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2006
Subjects
Agriculture
Farm income
Households
Rural areas
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Summary:In spite of various agricultural development efforts by national and international agencies, which have brought about technological innovations such as improved crop varieties and animal breeds as well as better production techniques, the resultant increase in farm output has not necessarily translated to increased farm income for farmers in Nigeria. This is mostly due to lack of market access and other market related factors. Suffice it to say that the development efforts had hitherto concentrated on the upstream agriculture at the expense of the downstream. Thus the objective of this study is to determine the role of market factors in the translation of incremental agricultural outputs into incremental farm incomes of rural households. Data from 400 households, randomly selected from 100 villages spread across 10 Local Government Areas in the four Agricultural Development Programme (ADP) Zones of Kebbi state, Nigeria were used to model the effect of some market-specific factors on rural households' farm income using Tobit Regression analysis. The result of the analysis revealed that the distance of the farm to the market, cost of transportation, medium of sales of farm produce, fees paid for space to display farm produce in the market and lack of up-to-date market information, had significant impacts on the farm income accruable to rural farming households in the study area. In addition to these, cost of transportation contributed the highest to the transaction cost of marketing farm produce. Therefore, the policies for increasing farming households' income require an integrated approach to intervention in downstream agriculture to enhance the market access, particularly in the area of fees paid to display farm produce in the market and transportation.