Determinants of market participation of maize farmers in rural Osun State of Nigeria

Type Journal Article - International Journal of Agricultural Economics & Rural Development
Title Determinants of market participation of maize farmers in rural Osun State of Nigeria
Author(s)
Volume 5
Issue 1
Publication (Day/Month/Year) 2012
Page numbers 28-29
URL https://www.researchgate.net/profile/Linus_NWAUWA/publication/265466598_Determinants_of_Market_Parti​cipation_of_Maize_Farmers_in_Rural_Osun_State_of_Nigeria/links/540f431f0cf2f2b29a3dda17.pdf
Abstract
The study investigated the levels of market participation of small-scale maize farmers in Osun State,
Nigeria with objective of examining the determinants of their market participation. A multi- stage sampling
technique was employed in the selection of the respondents. The first stage is the purposive selection of ten
Local Government Areas from the six agricultural zones in the state. The second stage involved random
selection of six villages from each Local Government Area (LGA). The third stage was random selection of 24
farmers from each village. Tobit model was used to analyse the factors affecting market participation while
Regression model was used to analyse the volume of maize offered to the market for sale. The result of the
Tobit model correctly predicted 67% of the observation with a significant chi square of 52.93 and it shows the
overall significance of the model. All variables had positive coefficients significantly different from zero except
years of education, transaction cost, marital status and household size. This means that a unit increase in the
quantity of these variables will increase the proportion of maize offered for sale by the respondents. The result
of the regression model also showed that R –Square and adjusted R-Square are respectively 91% and 90% with
a significant overall fit. Volume of maize sold by individual respondents was used as the dependent variable.
Total maize produced (p<0.01), age (p<0.05), years of education (p<0.10), ownership of cultivating equipment
(p<0.01), access to non farm income (p<0.05), and belonging to farmers’ association (p<0.01), means of
information (p<0.10), all had a significant and positive relationship with the volume of sales. This suggests that
an increase in any of these variables will lead to an increase in the volume of maize offered for sale while
marital status (p<0.05), and transportation cost (p<0.05), had a negative and significant relationship with the
volume of maize sold and this is in line with the a priori expectation. The study recommends that effort should
be made at establishing more points of sales in farming areas in order to lower transportation costs to promote
market participation and youths should be encouraged to participate in agricultural production and consequently
market participation so as to inject new blood into the system.

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