Economic determinants of rice marketing decisions among smallholder rural farming households, Federal Capital Territory, Nigeria

Abstract

This study determined the economic determinants of rice marketing decisions among smallholder rural farming households, Federal Capital Territory, Nigeria. Data were obtained from primary source for this study. Data were collected through the use of well- structured questionnaire. The questionnaires were administered to two hundred and seven (207) smallholder rural rice farming households. Multi-stage sampling technique was adopted. Data were analyzed using Descriptive Statistics, Heckman Two Stage Model (Probit Model, and (OLS) Regression). The results of the Heckman two stage selection equation Probit model in the first stage revealed that educational level of the household head (P<0.05), farm size (P<0.01), extension services (P<0.05), price information (P<0.01), and marketing experience (P<0.01) were among the significant factors influencing market participation. The results of the second stage OLS model showed that the significant factors influencing the extent of market participation regarding how much quantity of rice sold in a given market include: education of the household head (P<0.10), quantity of rice output harvested (P<0.01), and expected price of rice output (P<0.05). The coefficient of the multiple determinations (R2) was 0.849. This showed that the exogenous or explanatory variables included in the model explained about 85% variations in the quantity of rice sold in a given market. This study therefore, recommends that; smallholder farmers should be encouraged by providing them with credit facilities to influence their decision to produce marketable surplus to enable them participate in rice marketing, new innovations and technology that targets increased productivity should be promoted, provision of adequate extension officers is needed, input market supply for storage facilities should be made accessible to farmers, provision of rice processing equipment should be made available, effort to empower women should be designed, contract marketing should be encouraged, and information dissemination via communication devices for increased market participation and increased value sold among rice farmers should be a priority to eradicate poverty and improve livelihood of smallholder farmers. The study also provides insight into required policies and actions to be taken by government and NGOs to encourage market participation, eradicate poverty, provide food security and improve livelihood among smallholder rural rice farming households.

Keywords

• Determinants
• Rice
• Marketing
• Decisions,
• Smallholder farmers,
• Heckman two stage

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