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Causal Effect Of Credit And Technology Adoption On Farm Output And Income: The Case Of Cassava Farmers In Southwest Nigeria

Author

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  • Obisesan, Adekemi A.
  • Amos, Taiwo T.
  • Akinlade, Roseline J.

Abstract

This study examined credit accessibility, technology adoption and the impact on output and income of cassava farming households in Southwest Nigeria. Data were collected using structured questionnaire through a multi-stage sampling procedure. Ondo and Ogun states were randomly selected from the six States in Southwest, Nigeria. The next stage involved the random selection of four Local Government Areas from each State. Finally, a total of five hundred and forty cassava farmers were randomly selected from both States. Propensity Score Matching, descriptive statistics and Tobit regression model were employed in the analysis. There were 387 respondents with similar characteristics. Majority of the farmers were males with mean household size of six members. Average area of land cultivated was about 1 hectare. Credit accessibility was higher among the adopters. Credit access had a positive and significant (p<0.01) influence on level of adoption. Cassava yield and income (14.92 tonnes/ha and ₦321,758.00 respectively) of adopters with credit was higher than their counterparts (13.06 tonnes/ha and ₦287,110.90) without credit access. The impact of technology adoption was higher among adopters with credit access. Technology adoption increased cassava yield and income of adopters with credit access by 4.68tonnes/ha and ₦64,945.19 respectively compared with 2.57 tonnes/ha and ₦33,964.79 for those without access. This suggests that access to credit and technology adoption have the potential to transform smallholder agriculture in Nigeria. The study recommends that government should invest more on technology advancement and dissemination among smallholder farmers. Policy measures should also be oriented towards the improvement of rural credit.

Suggested Citation

  • Obisesan, Adekemi A. & Amos, Taiwo T. & Akinlade, Roseline J., 2016. "Causal Effect Of Credit And Technology Adoption On Farm Output And Income: The Case Of Cassava Farmers In Southwest Nigeria," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246443, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae16:246443
    DOI: 10.22004/ag.econ.246443
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    References listed on IDEAS

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    2. Asfaw, Abay & Admassie, Assefa, 2004. "The role of education on the adoption of chemical fertiliser under different socioeconomic environments in Ethiopia," Agricultural Economics, Blackwell, vol. 30(3), pages 215-228, May.
    3. Ater, P.I. & Umeh, Joseph Chinedu & Lawal, W.L., 2006. "Comparative Analysis of the Impact of World Bank Root and Tuber Expansion Programme on Poverty Alleviation of Peri-Urban and Rural Communities in Benue State, Nigeria," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25484, International Association of Agricultural Economists.
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    1. Yasir A. Nasereldin & Abbas Ali Chandio & Maurice Osewe & Muhammad Abdullah & Yueqing Ji, 2023. "The Credit Accessibility and Adoption of New Agricultural Inputs Nexus: Assessing the Role of Financial Institutions in Sudan," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    2. Seyi Olalekan Olawuyi & Abbyssinia Mushunje, 2019. "Social Capital and Adoption of Alternative Conservation Agricultural Practices in South-Western Nigeria," Sustainability, MDPI, vol. 11(3), pages 1-20, January.
    3. Adejumo, O. & Okoruwa, V. & Abass, A., 2018. "Improved Post-Harvest Technology: What Impact on Nigeria s Smallholder Cassava Starch Processors Welfare?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277054, International Association of Agricultural Economists.
    4. Wekesa, Bright Masakha, 2017. "Effect Of Climate Smart Agricultural Practices On Food Security Of Small Scale Farmers In Teso North Sub-County, Kenya," Research Theses 276427, Collaborative Masters Program in Agricultural and Applied Economics.

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    Financial Economics; Research and Development/Tech Change/Emerging Technologies;

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