EFFECT OF NIGER STATE RICE INVESTMENT CONSORTIUM PROJECT ON COMMERCIALIZATION LEVELS OF SMALLHOLDER FARMERS IN NIGER STATE, NIGERIA.

Abstract

Abstract The Niger State Rice Investment Consortium (NSRIC) project, consistent with the Niger State Agricultural Policy, promotes the transformation of the predominantly subsistence Agricultural production system to a modernized and Commercial-oriented system. This study assessed the effect of Niger State Rice Investment Consortium (NSRIC) project on commercialization levels of smallholder rice farmers in Niger State, Nigeria. A total sample size of 234 (made up of 117 participants and 117 non-participants) drawn from twelve (12) localities in three (3) Local Government Areas (LGA) were selected through multi-stage sampling technique. Data were collected from primary source, using well-structured questionnaire administered by the researcher and with the assistance of well-trained enumerators from the Niger State Bureau of Statistics (NBS). Data were analyzed using Descriptive Statistics, Household Commercialization Index, Tobit regression model and Henry Garrett technique. The result of descriptive statistics show that the respondents were in their productive age with mean age of 39 and 44 years of participants and non-participants respectively. Also, the results show that 80.34% and 81.22% of the participants and non-participants respectively were married. The result further revealed that the mean farm size were 2.0ha and 1.84ha for participants and non-participants respectively. The Household Commercialization Index (HCI) analysis reveal that the mean household commercialization indices were 67.25%, 31.57% and 49.41% for participant, non-participant and pooled sample respectively. The Tobic regression analysis reveal that the coefficients of household size and extension contact were negative but significantly influenced smallholder level of rice commercialization. While the coefficient of gender, farm size, quantity of rice produced, NSRIC project participant, access to market information, unit price of product, irrigation, access to tractorization and training are positive and significantly influence smallholder rice commercialization. The costs and returns analysis reveal that the farmers earned positive net farm incomes of N123,684.08 and N46,872.14 for participants and non-participants, respectively. From the findings of this study, it was therefore, recommended that governments at all levels must develop appropriate policies and strategies to promote the commercialization of smallholder Agriculture in the state, farmers themselves should form and maintain effective farmer groups to take advantage of better market prices for their products through their collective bargaining power.