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Determinants of Food Crop Diversity and Profitability in Southeastern Nigeria: A Multivariate Tobit Approach

Author

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  • Sanzidur Rahman

    () (School of Geography, Earth and Environmental Sciences, University of Plymouth, Drake Circus, Plymouth, PL4 8AA, UK)

  • Chidiebere Daniel Chima

    () (School of Geography, Earth and Environmental Sciences, University of Plymouth, Drake Circus, Plymouth, PL4 8AA, UK)

Abstract

The present study jointly determines the factors influencing decisions to diversify into multiple food crops ( i.e. , rice, yam and cassava) vis-à-vis profitability of 400 farmers from Ebonyi and Anambra states of Southeastern Nigeria using a multivariate Tobit model. Model diagnostic reveals that the decisions to diversify into multiple crops and profits generated therefrom are significantly correlated, thereby justifying use of a multivariate approach. Results reveal that 68% of the farmers grew at least two food crops and profitability is highest for only rice producers followed by joint rice and yam producers, which are mainly for sale. Farm size is the most dominant determinant of crop diversity vis-à-vis profitability. A rise in the relative price of plowing significantly reduces profitability of yam and rice. High yield is the main motive for growing yam and cassava whereas ready market is for rice. Other determinants with varying level of influences are proximity to market and/or extension office, extension contact, training, agricultural credit, subsistence pressure and location. Policy recommendations include investments in market infrastructure and credit services, land and/or tenurial reform and input price stabilization to promote food crop diversity vis-à-vis profitability in Southeastern Nigeria.

Suggested Citation

  • Sanzidur Rahman & Chidiebere Daniel Chima, 2016. "Determinants of Food Crop Diversity and Profitability in Southeastern Nigeria: A Multivariate Tobit Approach," Agriculture, MDPI, Open Access Journal, vol. 6(2), pages 1-14, April.
  • Handle: RePEc:gam:jagris:v:6:y:2016:i:2:p:14-:d:67401
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sanzidur Rahman & Chidiebere Daniel Chima, 2018. "Food Energy Availability from Agriculture at the Farm-Level in Southeastern Nigeria: Level, Composition and Determinants," Agriculture, MDPI, Open Access Journal, vol. 8(5), pages 1-18, May.
    2. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2020. "Crop diversity, household welfare and consumption smoothing under risk: Evidence from rural Uganda," World Development, Elsevier, vol. 125(C).
    3. Sanzidur Rahman & Chidiebere Daniel Chima, 2018. "Determinants of Pesticide Use in Food Crop Production in Southeastern Nigeria," Agriculture, MDPI, Open Access Journal, vol. 8(3), pages 1-14, February.

    More about this item

    Keywords

    Socio-economic determinants; food crop diversity; profitability; multivariate Tobit model; Southeastern Nigeria;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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