Rural Nonfarm Activities and Agricultural Crop Production in Nigeria

Although most rural households are involved in the farm sector, the nonfarm sector has grown significantly in recent decades, and its role in rural development has become increasingly important. This article examines the effect of participation in nonfarm activities on crop expenses of farm househol...

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Main Authors:	Oseni, Gbemisola, Winters, Paul
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Personal Finance D140 Time Allocation and Labor Supply J220 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Regional Economic Activity: Growth, Development, and Changes R110
Online Access:	http://hdl.handle.net/10986/4825

id	okr-10986-4825
recordtype	oai_dc
spelling	okr-10986-48252021-04-23T14:02:19Z Rural Nonfarm Activities and Agricultural Crop Production in Nigeria Oseni, Gbemisola Winters, Paul Personal Finance D140 Time Allocation and Labor Supply J220 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Regional Economic Activity: Growth, Development, and Changes R110 Although most rural households are involved in the farm sector, the nonfarm sector has grown significantly in recent decades, and its role in rural development has become increasingly important. This article examines the effect of participation in nonfarm activities on crop expenses of farm households in Nigeria. The relationship is modeled using a nonseparable agricultural household model that suggests that participating in nonfarm activities can relax the credit constraints facing farm households and reduce risk thereby helping households improve farm production and smooth consumption over time. The results show that participation in nonfarm activities by Nigerian farmers has a positive and significant effect on crop expenses and in particular on payments for hired labor and inorganic fertilizers. Separate analysis of the six geopolitical zones in Nigeria indicates that it is in the South-South and South-East zones where nonfarm participation appears to induce more hiring of labor. The results support the hypothesis that nonfarm participation helps relax liquidity constraints but suggests how that liquidity is used is zone-specific. In general, the results also indicate that liquidity is used more to pay for inputs into staple production as opposed to cash crops. 2012-03-30T07:29:55Z 2012-03-30T07:29:55Z 2009 Journal Article Agricultural Economics 01695150 http://hdl.handle.net/10986/4825 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Nigeria
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Personal Finance D140 Time Allocation and Labor Supply J220 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Regional Economic Activity: Growth, Development, and Changes R110
spellingShingle	Personal Finance D140 Time Allocation and Labor Supply J220 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets Q120 Regional Economic Activity: Growth, Development, and Changes R110 Oseni, Gbemisola Winters, Paul Rural Nonfarm Activities and Agricultural Crop Production in Nigeria
geographic_facet	Nigeria
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Although most rural households are involved in the farm sector, the nonfarm sector has grown significantly in recent decades, and its role in rural development has become increasingly important. This article examines the effect of participation in nonfarm activities on crop expenses of farm households in Nigeria. The relationship is modeled using a nonseparable agricultural household model that suggests that participating in nonfarm activities can relax the credit constraints facing farm households and reduce risk thereby helping households improve farm production and smooth consumption over time. The results show that participation in nonfarm activities by Nigerian farmers has a positive and significant effect on crop expenses and in particular on payments for hired labor and inorganic fertilizers. Separate analysis of the six geopolitical zones in Nigeria indicates that it is in the South-South and South-East zones where nonfarm participation appears to induce more hiring of labor. The results support the hypothesis that nonfarm participation helps relax liquidity constraints but suggests how that liquidity is used is zone-specific. In general, the results also indicate that liquidity is used more to pay for inputs into staple production as opposed to cash crops.
format	Journal Article
author	Oseni, Gbemisola Winters, Paul
author_facet	Oseni, Gbemisola Winters, Paul
author_sort	Oseni, Gbemisola
title	Rural Nonfarm Activities and Agricultural Crop Production in Nigeria
title_short	Rural Nonfarm Activities and Agricultural Crop Production in Nigeria
title_full	Rural Nonfarm Activities and Agricultural Crop Production in Nigeria
title_fullStr	Rural Nonfarm Activities and Agricultural Crop Production in Nigeria
title_full_unstemmed	Rural Nonfarm Activities and Agricultural Crop Production in Nigeria
title_sort	rural nonfarm activities and agricultural crop production in nigeria
publishDate	2012
url	http://hdl.handle.net/10986/4825
_version_	1764392902488752128

Rural Nonfarm Activities and Agricultural Crop Production in Nigeria

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