Research Article
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Economic Impact Analysis of Value Chain Development Programme (VCDP) on Net Farm Income of Rice Farmers in Niger State, Nigeria

Year 2024, Volume: 14 Issue: 1, 54 - 63, 28.06.2024
https://doi.org/10.53518/mjavl.1349336

Abstract

This study evaluated economic impact analysis of VCDP on net farm income (NFI) of rice farmers in Niger State, Nigeria. Primary data were used. A multi-stage sampling technique was used to select a total sample size of 292 rice farmers which comprised of 155 value chain development program beneficiaries and 137 non- beneficiaries. Data were analyzed using descriptive statistics, gross margin analysis, multiple regression analysis, difference-in-difference method (DD), propensity score matching (PSM), principal component analysis, F-Chow test, and t-test. The gross margin ratio for VCDP beneficiaries and non-beneficiaries was 88% and 71%. Rice production was profitable. The result of the difference-in-difference regression analysis showed that treatment (P< 0.10), period (P< 0.01), interaction (P< 0.10), level of educational (P< 0.10), and farm experience (P< 0.10), were statistically significant variables influencing the net farm income of rice farmers in the study area. The results of PSM show that the coefficient of Average Treatment Effect for all matching algorithms for net farm income of rice farmers such as nearest neighbor, radius, kernel, and stratification were significant at (P< 0.01). The F-Chow test conducted for difference between NFI of participant and non-participant of VCDP was statistical significant. This shows that VCDP impacted positively on NFI of rice farmers. The study recommends that low-interest loans should be made available to rice farmers to increase income.

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Project Number

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References

  • Bamidele, T; Olayide, O; and Ohigbinde, D (2019). Assessing IFAD Value Chain Development Programme on Productivity and Income of Smallholder Farmers’ in Obafemi-Owode and Yewa Local Government Areas of Ogun State, Nigeria. African Journal of Sustainable Development, 9 (1), 1 – 22.
  • Bashir, M.K., Schilizzi, S., & Pandit, R. (2018). The Determinants of Rural Household Food Security for Landless Households of the Punjab, Pakistan. AgEcon Search.
  • Ben-Chendo, G, N., Lawal, N., Osuji,M.N., Osugiri, I.I., and Ibeagwa, B.O (2015). Cost and Returns of Paddy Rice Production in Kaduna State, Nigeria. International Journal of Agricultural-Marketing, 2 (5), 084 – 089
  • Emodi, I. A. and Madukwe, M.C. (2012). A review of policies, acts and initiatives in rice innovation system in Nigeria. Journal of Agricultural Extension, 12(2). doi:10.4314/jae.v12i2.47052.
  • Fakayode, S.B., Babatunde R.D and Ajao R.(2014). “Productivity Analysis of Cassava-Based Production Systems in the Guinea Savannah: Case Study of Kwara State, Nigeria”. American-Eurasian Journal of Scientific Research, 3, 33-39
  • IFAD (2017). Value Chain Development Programme (VCDP) Supervision report. Main Report and appendices.
  • West and Central Africa Division Programme Management Department, 28-08-2017. Obtained on 18-04-2018 from https://operations.ifad.org/documents/654016/e186f287-8f12-4738- 9499-9b89093e5f0a
  • Nwalieji, H. U., Madukwe, M.C, Agwu, A.E and Umerah, M. I (2014). Adoption of Rice Technologies Introduced by the United States Agency for International Development in Anambra and Ebonyi States, Nigeria. Journal of Agricultural Extension, 18(1), 158-169.
  • Ojogho, O and Alufohai, G.O. (2010). Rice Consumption Pattern in Nigeria: A Road to Sustainable food Consumption. Int’l. J. Agriculture, 3(3), 56-63
  • Olaoye, O. J., Ashley-Dejo, S. S., Fakoya, E. O., Ikeweinwe, N. B., Alegbeleye, W. O., Ashaolu, F. O and Adelaja, O. A., (2013). Assessment of Socio-Economic Analysis of Fish Farming in Oyo State, Nigeria. Journal of Agricultural Research, 3 (2), 22-30.
  • Olagunju, F.I, Adesiyan, I.O. and Ezekiel, A.A. (2010) Economic Viability of Cat Fish Production in Oyo State, Nigeria. Journal of Human Ecology, 21(2), 121-124.
  • Olukosi, J.O. and Erhabor, P.O (2005) Introduction to Farm Management Economics: Principles and Applications. Zaria: AGITAB Publishers.
  • Pufahl, A and Weiss, C.R (2009). Evaluating the Effects of Farm Programmes: Result from Propensity Score Matching. European Review of Agricultural Economics, 36(1), 79 - 101
  • Sani A, Yakubu, A.A., and Bello, H.M. (2014). Resource-Use Efficiency in Rice Production Under
  • Small Scale Irrigation in Bunkure Local Government Area of Kano State. Nigerian Journal of Basic and Applied Science. 18(2): 292-296
  • Value Chain Development Program (2015). Who we are. Obtained on 18-04-2018 from http://vcdpnigeria.org/? page_id=94IFAD(n.d.)Performance of VCDP/Olam Partnership in Nigeria in 2017 Cropping Season.
  • WBCSD (2011). World Business Council for Sustainable Development. A Vision for Sustainable Consumption, Innovation, Collaboration, and the Management of Choice. WBSCD Consumption and Value Chain. https://docs.wbcsd.org/2011/10/AVisionforSustainableConsumption. 24/7/23
  • World Bank (2011a). Missing food: The case of postharvest grain losses in sub-Saharan Africa. The World Bank.
  • World Bank (2011b). Gender Equality and Development. World development report 2012.
  • Zalkuwi, J (2015). Production Cost and Return; Comparative Analysis of Sorghum in India and Nigeria. Economics, 4,18. Doi:10.11648/j.eco.20150402.11.
Year 2024, Volume: 14 Issue: 1, 54 - 63, 28.06.2024
https://doi.org/10.53518/mjavl.1349336

Abstract

Project Number

Nil

References

  • Bamidele, T; Olayide, O; and Ohigbinde, D (2019). Assessing IFAD Value Chain Development Programme on Productivity and Income of Smallholder Farmers’ in Obafemi-Owode and Yewa Local Government Areas of Ogun State, Nigeria. African Journal of Sustainable Development, 9 (1), 1 – 22.
  • Bashir, M.K., Schilizzi, S., & Pandit, R. (2018). The Determinants of Rural Household Food Security for Landless Households of the Punjab, Pakistan. AgEcon Search.
  • Ben-Chendo, G, N., Lawal, N., Osuji,M.N., Osugiri, I.I., and Ibeagwa, B.O (2015). Cost and Returns of Paddy Rice Production in Kaduna State, Nigeria. International Journal of Agricultural-Marketing, 2 (5), 084 – 089
  • Emodi, I. A. and Madukwe, M.C. (2012). A review of policies, acts and initiatives in rice innovation system in Nigeria. Journal of Agricultural Extension, 12(2). doi:10.4314/jae.v12i2.47052.
  • Fakayode, S.B., Babatunde R.D and Ajao R.(2014). “Productivity Analysis of Cassava-Based Production Systems in the Guinea Savannah: Case Study of Kwara State, Nigeria”. American-Eurasian Journal of Scientific Research, 3, 33-39
  • IFAD (2017). Value Chain Development Programme (VCDP) Supervision report. Main Report and appendices.
  • West and Central Africa Division Programme Management Department, 28-08-2017. Obtained on 18-04-2018 from https://operations.ifad.org/documents/654016/e186f287-8f12-4738- 9499-9b89093e5f0a
  • Nwalieji, H. U., Madukwe, M.C, Agwu, A.E and Umerah, M. I (2014). Adoption of Rice Technologies Introduced by the United States Agency for International Development in Anambra and Ebonyi States, Nigeria. Journal of Agricultural Extension, 18(1), 158-169.
  • Ojogho, O and Alufohai, G.O. (2010). Rice Consumption Pattern in Nigeria: A Road to Sustainable food Consumption. Int’l. J. Agriculture, 3(3), 56-63
  • Olaoye, O. J., Ashley-Dejo, S. S., Fakoya, E. O., Ikeweinwe, N. B., Alegbeleye, W. O., Ashaolu, F. O and Adelaja, O. A., (2013). Assessment of Socio-Economic Analysis of Fish Farming in Oyo State, Nigeria. Journal of Agricultural Research, 3 (2), 22-30.
  • Olagunju, F.I, Adesiyan, I.O. and Ezekiel, A.A. (2010) Economic Viability of Cat Fish Production in Oyo State, Nigeria. Journal of Human Ecology, 21(2), 121-124.
  • Olukosi, J.O. and Erhabor, P.O (2005) Introduction to Farm Management Economics: Principles and Applications. Zaria: AGITAB Publishers.
  • Pufahl, A and Weiss, C.R (2009). Evaluating the Effects of Farm Programmes: Result from Propensity Score Matching. European Review of Agricultural Economics, 36(1), 79 - 101
  • Sani A, Yakubu, A.A., and Bello, H.M. (2014). Resource-Use Efficiency in Rice Production Under
  • Small Scale Irrigation in Bunkure Local Government Area of Kano State. Nigerian Journal of Basic and Applied Science. 18(2): 292-296
  • Value Chain Development Program (2015). Who we are. Obtained on 18-04-2018 from http://vcdpnigeria.org/? page_id=94IFAD(n.d.)Performance of VCDP/Olam Partnership in Nigeria in 2017 Cropping Season.
  • WBCSD (2011). World Business Council for Sustainable Development. A Vision for Sustainable Consumption, Innovation, Collaboration, and the Management of Choice. WBSCD Consumption and Value Chain. https://docs.wbcsd.org/2011/10/AVisionforSustainableConsumption. 24/7/23
  • World Bank (2011a). Missing food: The case of postharvest grain losses in sub-Saharan Africa. The World Bank.
  • World Bank (2011b). Gender Equality and Development. World development report 2012.
  • Zalkuwi, J (2015). Production Cost and Return; Comparative Analysis of Sorghum in India and Nigeria. Economics, 4,18. Doi:10.11648/j.eco.20150402.11.
There are 20 citations in total.

Details

Primary Language English
Subjects Farm Management, Rural Management and Agribusiness, Agriculture, Land and Farm Management (Other)
Journal Section Research Article
Authors

Olugbenga Omotayo Alabı 0000-0002-8390-9775

Ajayi Godfrey Sunday 0009-0008-5486-1865

Elizabeth Ebukiba 0000-0002-6765-8697

Jeremiah Aluwong 0000-0001-8462-538X

Paul Akınwumı Atteh This is me

Project Number Nil
Publication Date June 28, 2024
Submission Date August 24, 2023
Published in Issue Year 2024 Volume: 14 Issue: 1

Cite

APA Alabı, O. O., Sunday, A. G., Ebukiba, E., Aluwong, J., et al. (2024). Economic Impact Analysis of Value Chain Development Programme (VCDP) on Net Farm Income of Rice Farmers in Niger State, Nigeria. Manas Journal of Agriculture Veterinary and Life Sciences, 14(1), 54-63. https://doi.org/10.53518/mjavl.1349336