Wealth Status and Improved Rice Varieties Adoption Among Smallholder Farmers in Nigeria
17 Pages Posted: 31 Jan 2013
Date Written: January 29, 2013
Due to the high cost and risk associated with adoption, the wealth of a household may be an important factor in the decision to adopt Improved Rice Varieties (IRVs) in Nigeria. This study assessed the role of household wealth in IRVS adoption. The study employed the Principal Component Analysis (PCA) to generate the wealth index which was used to partition the respondents into wealthy and non-wealthy households. The logit and the Tobit models were adopted to assess the determinants and intensity of adoption of IRVs among 600 randomly selected smallholder rice farmers from the three major rice producing ecologies in Nigeria. Data were collected using well-structured questionnaire. Results indicated that factors determining the adoption and intensity of adoption of IRVs varied between the wealthy and non-wealthy households. Farmers organization, access to credit, access to seed, education, wealth index, contact with extension agents were some of the variables that had positive and significant influence on the farmers decision to adopt IRVs. Farm size, wealth and income positively and significant affected the intensity of adoption. The cost off seed had negative and significant effect on both the decision to adopt and the intensity of adoption. Hence, if the desired adoption rate and intensity of adoption of IRVs is to be achieved, it is important to embark on wealth group specific policies, adopt programs and policies that can lead to improvement in wealth and households income, encourage formation of farmers’ organization and ensure the price of IRV seeds are affordable to the rural farmers.
Keywords: Adoption, Wealth, Rice, Farmers, Logit, Tobit, Nigeria
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