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Samaru Journal Of Agricultural Education

Year: 2016|   Volume No: 7|   ISSN: 0794 – 7860|   Page No: 


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Title:  

The Farm Support Policy Debate in Nigeria: Evidence from Small-scale Rice Production in selected villages of Kaduna State, Nigeria

A.A. Ammani , Z. Abdulsalam , M.A Damisa and T.K. Atala

NATIONAL AGRICULTURAL EXTENSION AND RESEARCH LIAISON SERVICES AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA DEPARTMENT OF AGRICULTURAL ECONOMICS AND RURAL SOCIOLOGY AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA

ABSTRACT

The study was aimed at finding answer to the question: should the government subsidize farm inputs or support farm producer prices? A multistage random procedure was employed to draw a sample of 241 rice farmers in Kaduna state. Primary data was collected and analyzed using the Policy Analysis Matrix (PAM). Sensitivity analyses were conducted to test the likely effects of changes on the costs of fertilizers and pesticides as well as price of output on farmers profit. Farmer profit was estimated at N93, 498.93 per hectare. Results indicated that a 25% and 50% increase in fertilizer costs will reduce farmers profit to N87, 661.00 and N81,825.80 respectively; a 25% and 50% increase in the costs of protection chemicals will respectively reduce farmers profit to N92, 295.00 and N91, 091.14. A 100% increase in the costs of rice seeds is expected to reduce farmers profit to N80, 161.07 i.e. by just 14%! However, a 25% and 50% increase output price will raise farmers profit to N143, 259.81 and N193,020.69 respectively. It is concluded that changes in inputs costs have much smaller effects on profits than changes in the prices of outputs; therefore government policies should be more towards producer price support than the provision of farm input subsidy.

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