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Manuscript ID : IJASRT-2305-1280 (R1) Visit : 241 Page: 119 - 130

20.1001.1.22517588.2023.13.2.6.4

Article Type: Original Research

Rice Farmers' Technical Efficiency and Level of Poverty: Evidence from the Anchor Borrower Program (ABP)

Subject Areas : Extension and Economic

Kafayat Belewu 1 , Abraham Ajao 2 , Ayinde Ezekiel 3

1 - Department of Agricultural Economics and Farm Management, University of Ilorin, Ilorin, Nigeria.
2 - Department of Agricultural Economics, Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria
3 - Department of Agricultural Economics, Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria

Received: 2023-05-15 Accepted : 2023-06-20 Published : 2023-06-30

Keywords: ABP, Gini-coefficient, rice farmer, vulnerability-index,

Abstract :

To avoid the moribund path of most of the earlier implemented agricultural-based interventions in Nigeria. Anchor Borrowers’ program was introduced to contribute meaningfully to the economy. The study investigated on rice farmers’ technical efficiency and level of poverty in Nigeria: Evidence from the Anchor borrower program. Primary data were analyzed using Descriptive analysis, Gini coefficient, Stochastic production Frontier model, Regression analysis, and Vulnerability Index. Evidence from the result revealed that the average yield per hectare of paddy rice for the beneficiaries (70%) majorly was 4500 kg while non-beneficiaries (52%) was 3500kg. The production function showed that the coefficient of regression for herbicides, seed and fertilizer was positively significant at 5% and %, respectively. The factors that influencing technical inefficiency (farm organization, farm size, farm experience and ABP loan) were found to be negatively significant. The logistic regression model estimate revealed that factors influence loan acquisitions of respondents include: (farm organization, extension agent visit, age of household, and farm size) which were positively statistically significant and this is important in explaining ABP credit acquisition access among households. The results of the Gini coefficient also indicated that income inequality was higher in ABP beneficiaries than non-beneficiaries. Vulnerability index results showed that ABP non-beneficiaries were more vulnerable to poverty than beneficiaries. Additionally, the non-beneficiaries have a poorer population than beneficiaries. However, these results indicate that the Anchor borrower program has a positive impact on beneficiaries’ welfare.

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