Smallholder's Market Participation, Characteristics, Tractor Use Implications and Determinants in Nigeria

The smallholders' transformation from the passive nature of farming using crude implements into active and rewarding market participation remains problematic. Over the years, smallholder farming and market have been associated with trails of many middlemen, farm gate sales, and consumption. However, there is a lack of information on the recent changes that have occurred due to government intervention, globalization, and the fourth industrial revolution in Nigeria and many other developing countries. Hence, this study investigates the smallholders' market participation, level of participation, determinants of the smallholders' market participation, driving force behind the smallholder farming, tractor-use, and tractor-use impact on the smallholders' market participation. A multistage sampling technique was applied to select 280 smallholder farmers for the research. Descriptive statistics and propensity score matching (PSM) were used to analyze the data. The findings revealed that the smallholders' market participation level is low. Most smallholders (62 percent) could not sell up to 50 percent of their products. The study showed that smallholders participate in the market at different output sales levels, with most tractor-users participating in the market at a high output sales level. In contrast, many non-tractor users participated at low output sales, indicating poor market participation. Most smallholders sell their produce at the farm gate to date. Smallholder tractor use remains low. Only 28 percent of the total respondents used tractors. The PSM analysis revealed that tractor-use significantly impacts the smallholders’ market participation alongside the education level, area cultivated, and access to information on farming activities such as market information. The smallholders’ involvement in another occupation negatively impacts their market participation. The year(s) of farming experience did not positively impact the smallholder’s market participation, which could be due to poor adoption of technology. The farming and market participation seems unchanged, with most individuals, not collective smallholders, not frequently producing for the market. Their market participation has not experienced meaningful progress despite income generation forming the major motive behind their farming. It is true that some smallholders mainly produce for consumption, but the sole purpose of ensuring households' food security is the least reason many households embark on farming. Positive transformation of the smallholder into active and mainstream market participation is possible if technology, including tractor, and suitable approaches are adopted, as evidenced by this research among smallholders who used tractors. It was recommended that the smallholders' tractor-use issue be prioritized in all policies addressing the smallholders' market participation. Smallholders should not be viewed as farmers who only went into farming for consumption.