Estimating financing gaps in rice production in southwestern Nigeria

This study analyzed the financing gaps relative to production frontier of rice farmers in Southwestern Nigeria. A multistage sampling technique was used to collect cross sectional data from 360 rice farmers selected from three States in the region. A Cobb-Douglas stochastic frontier and an adapted f...

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Autores principales: Ojo, Temitope O., Ogundeji, Abiodun A., Babu, Suresh Chandra, Alimi, Taiwo
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2019
Materias:
Acceso en línea:https://hdl.handle.net/10568/146884
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author Ojo, Temitope O.
Ogundeji, Abiodun A.
Babu, Suresh Chandra
Alimi, Taiwo
author_browse Alimi, Taiwo
Babu, Suresh Chandra
Ogundeji, Abiodun A.
Ojo, Temitope O.
author_facet Ojo, Temitope O.
Ogundeji, Abiodun A.
Babu, Suresh Chandra
Alimi, Taiwo
author_sort Ojo, Temitope O.
collection Repository of Agricultural Research Outputs (CGSpace)
description This study analyzed the financing gaps relative to production frontier of rice farmers in Southwestern Nigeria. A multistage sampling technique was used to collect cross sectional data from 360 rice farmers selected from three States in the region. A Cobb-Douglas stochastic frontier and an adapted form of Harrod-Domar (HD) Growth model was employed to determine the financing gap required for the farmers to be at the frontier level. The empirical results of the frontier model show that quantity of labor, quantity of rice as planting material and herbicides were statistically significant in explaining the variations in the efficiency of rice production in Nigeria. However, age, gender, farming experience, household size, access to credit, access to information, adoption of improved variety and location of rice farmers as sources of technical inefficiencies. As revealed by the result of the HD growth model, the average amount of credit per season that farmers had access to was, ₦38,630.56 while the mean financing in the form of credit required to produce at the frontier level was ₦193,626.50, showing a financing shortfall of about 80%. As unravelled by the result of the study, it can thus be concluded that technical efficiency of rice farmers can be improved by improving access to timely credit and agricultural information for improving rice productivity. These findings suggest that filling the financing gap of smallholder rice farmers will improve rice productivity in Nigeria. The study, therefore, recommends that strengthening the existing technology by building farmers’ capacity on farm management practices would be surest means of improving rice productivity growth in Nigeria. This would not only contribute to the intensification of rice production in Nigeria to meet its increasing rice demand, but also improve rice farmers’ productivity and their households’ incomes.
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spelling CGSpace1468842025-11-06T07:20:44Z Estimating financing gaps in rice production in southwestern Nigeria Ojo, Temitope O. Ogundeji, Abiodun A. Babu, Suresh Chandra Alimi, Taiwo seed quality agricultural production rice farm income labour crop production smallholders stochastic models financing herbicides This study analyzed the financing gaps relative to production frontier of rice farmers in Southwestern Nigeria. A multistage sampling technique was used to collect cross sectional data from 360 rice farmers selected from three States in the region. A Cobb-Douglas stochastic frontier and an adapted form of Harrod-Domar (HD) Growth model was employed to determine the financing gap required for the farmers to be at the frontier level. The empirical results of the frontier model show that quantity of labor, quantity of rice as planting material and herbicides were statistically significant in explaining the variations in the efficiency of rice production in Nigeria. However, age, gender, farming experience, household size, access to credit, access to information, adoption of improved variety and location of rice farmers as sources of technical inefficiencies. As revealed by the result of the HD growth model, the average amount of credit per season that farmers had access to was, ₦38,630.56 while the mean financing in the form of credit required to produce at the frontier level was ₦193,626.50, showing a financing shortfall of about 80%. As unravelled by the result of the study, it can thus be concluded that technical efficiency of rice farmers can be improved by improving access to timely credit and agricultural information for improving rice productivity. These findings suggest that filling the financing gap of smallholder rice farmers will improve rice productivity in Nigeria. The study, therefore, recommends that strengthening the existing technology by building farmers’ capacity on farm management practices would be surest means of improving rice productivity growth in Nigeria. This would not only contribute to the intensification of rice production in Nigeria to meet its increasing rice demand, but also improve rice farmers’ productivity and their households’ incomes. 2019-11-27 2024-06-21T09:09:18Z 2024-06-21T09:09:18Z Working Paper https://hdl.handle.net/10568/146884 en https://doi.org/10.1017/S1368980018003075 https://doi.org/10.18697/ajfand.83.16950 https://hdl.handle.net/10568/99241 https://hdl.handle.net/10568/146569 https://hdl.handle.net/10568/147331 Open Access application/pdf International Food Policy Research Institute Ojo, Temitope O.; Ogundeji, Abiodun A.; Babu, Suresh Chandra; and Alimi, Taiwo. 2019. Estimating financing gaps in rice production in southwestern Nigeria. IFPRI Discussion Paper 1818. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/146884
spellingShingle seed quality
agricultural production
rice
farm income
labour
crop production
smallholders
stochastic models
financing
herbicides
Ojo, Temitope O.
Ogundeji, Abiodun A.
Babu, Suresh Chandra
Alimi, Taiwo
Estimating financing gaps in rice production in southwestern Nigeria
title Estimating financing gaps in rice production in southwestern Nigeria
title_full Estimating financing gaps in rice production in southwestern Nigeria
title_fullStr Estimating financing gaps in rice production in southwestern Nigeria
title_full_unstemmed Estimating financing gaps in rice production in southwestern Nigeria
title_short Estimating financing gaps in rice production in southwestern Nigeria
title_sort estimating financing gaps in rice production in southwestern nigeria
topic seed quality
agricultural production
rice
farm income
labour
crop production
smallholders
stochastic models
financing
herbicides
url https://hdl.handle.net/10568/146884
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