DETERMINANTS OF RISK MANAGEMENT STRATEGIES AND HOUSEHOLD INCOME SOURCES AMONG RICE FARMERS IN KEBBI AND EBONYI STATES, NIGERIA

Authors

  • A. I. DAVID
  • Y. U. OLADIMEJI
  • A. S. HUSSAINI
  • O. YUSUF
  • S. ABDULRAHMAN
  • C. U. UCHENDU
  • M. A. OWOLABI
  • M. UMAR

Keywords:

Risks, Management strategies, Household, Income, Nigeria

Abstract

Smallholder farmers in rural Nigeria are usually confronted with agricultural risks which necessitate livelihood diversification. This study was conducted to determine risk management strategies and household income sources, and effects of farmers’ attributes on the agricultural risks’ sources and risk coping strategies. The study examined rice production in Nigeria, with reference to Kebbi and Ebonyi States where rice production is predominant. It utilized a multistage sampling procedure with sample size of 63 rice farmers from Ebonyi State and 315 from Kebbi State. Multinomial logit was used to analyze major factors determining the choice of risk management strategies adopted by the rice farmers. Rice production in the two states is predominantly embraced by middle-aged farmers, with mean ages of 43 and 42, respectively. Overall average household size was 9 people per household. About 54.0% of rice farmers lack formal education, in Ebonyi State and 39.0% in Kebbi State. Male genderism has marginal effect on market monitoring and evaluation risk mitigating strategies, with a household increase of 0.2%, indicating a higher likelihood of adopting economic factor strategies. Increasing rice farm size leads to a decrease in farmers' adoption of information and development factor, social factor and market and monitoring evaluation mitigating strategies. All households, on average, generate 75.4% of their total income from agriculture, with 25.0% receiving income from off-farm sources. Farmers either grow only rice, having no other income sources, or may diversify into some other categories. With age, rice farmers are more likely to engage in non-farm income activities due to the capital- and labor-intensive nature of rice cultivation. Higher education levels increase the probability of rice farmers adopting management strategy by 2.5%. The study found that socioeconomic and institutional factors influence rice farmers' risk management strategies and income sources. Most farmers rely on farming, suggestive the need for adult literacy programs and risk-mitigating strategies.

 

Author Biographies

A. I. DAVID

Department of Agricultural Economics, Ahmadu Bello University, Zaria, Nigeria

 

Y. U. OLADIMEJI

Department of Agricultural Economics, Ahmadu Bello University, Zaria, Nigeria

 

O. YUSUF

Department of Agricultural Economics, Ahmadu Bello University, Zaria, Nigeria

 

S. ABDULRAHMAN

Department of Agricultural Economics, Ahmadu Bello University, Zaria, Nigeria

 

C. U. UCHENDU

Samaru College of Agriculture, Division of Agriculture College, Ahmadu Bello University, Zaria, Nigeria

M. A. OWOLABI

Department of Agricultural Economics, Ahmadu Bello University, Zaria, Nigeria

 

M. UMAR

Department of Agricultural Economics, Ahmadu Bello University, Zaria, Nigeria

 

References

Abdulrahman, S., David, A. I., Yusuf, O., Abdulazeez, R. O., and Binuyo, G. 2016. Analysis of Livelihood Diversification by Farming Households in Kaduna State, Nigeria. 2nd International Conference on Dry land Agriculture, Centre for Dry land Agriculture, Bayero University, Kano. 12th -16th December, 2016. Proceeding, 2: 45-49.

ACReSAL, 2024. Kebbi Agro-Climatic Resilience in Semi-Arid Landscape https://acresal.gov.ng/states/kebbi/

Ahmed, F. F. 2012. Income diversification determinants among farming households in Konduga, Borno State, Nigeria. Academic Research International 2(2): 556-561. ISSN- L: 2223-9553, ISSN: 2223-9944.

Akaakohol, M., Aye, G. 2014. Diversification and farm household welfare in Makurdi, Benue State, Nigeria. Development Studies Research, 1(1): 168-175. http://dx.doi.org/10.1080/21665095.2014.919232

Akintunde, O., Ajayi, F., Bamiwuye, O. P., and Olanrewaju, K. 2022. Factors influencing livelihood diversification among farming households in Ejigbo local government area of Osun State, Nigeria. Economic Engineering in Agriculture and Rural Development, 22(3): 15-22. PRINT ISSN 2284-7995, E-ISSN 2285-3952

Akrasi, R. O., Eddico, P. N., Adarkwah, R. 2020. Income diversification strategies and household food security among rice farmers: pointers to note in the north tongu district of Ghana. Journal of Food Security 8(3): 77-88. Http://dx.doi.org/10.12691/jfs-8-3-1

Asfaw, S., McCarthy, N., Paolantonio, A., Cavatassi, R., Amare, M., Lipper, L. 2015. Livelihood diversification and vulnerability to poverty in rural Malawi (ESA Working Paper No. 15-02). Rome: FAO. http://dx.doi.org/10.2139/ssrn.3305894

Babatunde, R. O., Adejobi, A. O., and Fakayode, S. B. 2010. Income and calorie intake among farming households in rural Nigeria: results of parametric and non parametric analysis. Journal of Agricultural Science, 2(2): 135–146. DOI:10.5539/jas.v2n2p135

Cooke, J. G., Jonathan, E. 2016. Tracing the Roots of Nigeria’s Agricultural Decline. Center for Strategic and International Studies, Washington, D.C., Online]. Available https://www.csis.org/analysis/tracing-roots-nigeriasagricultural-decline, Accessed on 25/12/2024.

David, A. I., Oladimeji, Y. U., Yusuf, O. 1., Abdulrahman S., Hussaini, A. S., Kehinde, E. A. 2024. Effects of risk management strategies on the efficiency of rice farmers in Nigeria. Journal of Agricultural Research and Entrepreneurship, 1(1), 45-53.

Ebonyi State Agricultural Development Programme EBADP, 2012. Bulletin, No 2, 6pp.

Hjelm, L., and W. Dasori. 2012. Ghana Comprehensive Food Security & Vulnerability Analysis 2010: Focus on Northern Ghana, Ministry of Food and Agriculture Ghana StatisticalService,1–61. http://documents.wfp.org/stellent/groups/public/documents/ena/wfp257009.pdf .

Ibeje, A., Anthony, E. 2020. Statistical analysis of climate data of Southeast Nigeria. Umudike Journal of Engineering and Technology, 6(2): 82-87. Http://dx.doi.org/10.33922/j.ujet_v6i2_10

Idowu, A. O., Ambali, O. I., Onasanya, A. S. 2014. Living condition, livelihood and crop diversification among rural farm households in Remo division of Ogun State Nigeria. Asian Journal of Agricultural Extension, Economics & Sociology, 3(6): 619- 629. Http://dx.doi.org/10.9734/AJAEES/2014/8608

Kebbi Agricultural and Rural Dev Authority (KARDA), 1992. Basic Information, 17 pp.

Kuwornu, J. K. M., Iziden, M. P. M., Osei-Asare, Y. B. 2011. Supply response of rice in Ghana: A co-integration analysis. Journal of Economics and Sustainable Development, 2(6): 1-14. ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online).

Kyire, S. K. C., Kuwornu, J, Bannor. R., Apiors, E., Martey E. 2023. Perceived risk and risk management strategies under irrigated rice farming: Evidence from Tono and Vea irrigation schemes-Northern Ghana. Journal of Agriculture and Food Research, 12(2023) 100593. https://doi.org/10.1016/j.jafr.2023.100593. www.sciencedirect.com/journal/journal-of-agriculture-and-food-research.

Magaji, B. D., Oladimeji, Y. U., Hassan, A. A., Siewe, F., Njiforti, P. P. 2021. Risk management strategies of micro, small and medium agribusiness enterprises in north-west, Nigeria. Journal of Agripreneurship and Sustainable Development, 4(2): 214-227.http://dx.doi.org/10.59331/jasd.v4i2.223

Man. N. 2009. Factors affecting the decision making in off farm employment among paddy farmers in Kemasin Semerak. Pertanika Journal of Social Science and Humanity, 17(1), 7-15. ISSN: 0128-7702

Obianefo, C. A., Okoroji, N. O., Obiekwe, N. J., Osuafor, O. O., Shah, Z. A. 2022. Economics of good agronomic practices adoption by rice farmers in value chain development programme, Anambra State, Nigeria. Journal Food, Agriculture and Nutrition Development, 22(8): 21308-21330. https://doi.org/10.18697/ajfand.113.2142522.

Oladimeji, Y. U., Abdulsalam, Z., & Abdullahi, A. N. 2015. Determinants of participation of rural farm households in non-farm activities in Kwara State, Nigeria: A paradigm of poverty alleviation. Ethiopian Journal of Environmental Studies and Management, 8(6): 635 – 649. http://dx.doi.org/10.4314/ejesm.v8i6.3

Oladimeji, Y. U., Galadima, S. A., Hassan, A. A., Sanni, A. A., Abdulrahman, S., Egwuma, H., Ojeleye, A. O. and Yakubu, A. 2019. Risk analysis in fish farming in Oyo State, Nigeria: A prospect towards improving fish production. Animal Research International, 16(1): 3226 – 3237. ISSN 1597-3115. https://www.scholar.google.com

Pham, T. T., LeDang, H., . Pham, N. T. A.and Dang, H. D. 2021. Adoption of contract farming for managing agricultural risks: a case study in rice production in the Mekong Delta. Vietnam Journal of Agribusiness Development and Emergency Economy, 1-13. https://www.emerald.com/insight/2044-0839.htm

Shahid, M., Munda, S., Khanam, R., Chatterjee, D., Kumar, U., Satapathy, B. S., Mohanty, S., Bhaduri, D ., Tripathi, R., Nayak, P. K., and Nayak, A. K. (2021). Climate resilient rice production system: Natural resources management approach. ORYZA- International Journal on Rice, 58(1), 143-167.

http://www.dx.doi.org/10.35709/ory.2021.58.spl.6

Singh, B. R. 1995. Soil management strategies for the semi-arid ecosystem in Nigeria: the case of Sokoto and Kebbi States. African Soils, 28: 317-320.

https://doi.org/10.5897/JAERD2013.0547.

Teshome, B., Edriss, A. K. 2013. Determinants and patterns of income diversification among smallholder farmers in Akaki District. Ethiopia Journal of Research in Economics and International Finance, 2(4): 68-78. http://dx.doi.org/10.22004/ag.econ.157598.

Umar, M., Oladimeji, Y. U., Egwuma, H., Owolabi, J. O. 2024. A comprehensive analysis of market structure- performance of sugarcane (Saccharum officinarum L.) in north-central Nigeria. 2nd Faculty of Agric. Int Con. (Hybrid). Theme: Digitalization of Agriculture and Bio-Conservation for Food Security held at Nnamdi Azikiwe University, Awka, Nigeria, from 12-14th March, 2024. Proceeding, 2: 276- 285. https://journals.unizik.edu.ng/faic/article/view/3500

Yakubu, D. H., Oladele, O. I. 2021. Determinants of Use of Climate Change Adaptation Practices by Rice Farmers in Kebbi State, North-West Nigeria. Science Journal of Warsaw University of Life Sciences, 21(1): 52–69. DOI: http://dx.doi.org/10.22630/PRS.2021.21.1.4

Yesuf, M., Bluffstone, R. 2007. Risk aversion in low-income countries: Experimental evidence from Ethiopia, IFPRI discussion papers 715, International Food Policy Research Institute (IFPRI). Environment and Production Technology Division, Washington, D.C. https://hdl.handle.net/10568/21522

Downloads

Published

2025-07-11

Issue

Section

Articles