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:
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