Browsing by Author "SODIPE, OLUWATOYIN MORENIKE"

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    EFFECTS OF CREDIT UTILIZATIONAND RISK MANAGEMENT PRACTICES ON PRODUCTION EFFICIENCY OFCASSAVA — BASED FARMERS IN SOUTHWEST,NIGERIA
    (2025-06-12) SODIPE, OLUWATOYIN MORENIKE
    ABSTRACT Credit use and effective risk management are important in improving the efficiency and livelihood offarmers. Thus, this study examined the effects ofcredit utilization and risk managementpracticesontheproductionefficiencyofcassava-basedfarmersinSouthwest, Nigeria. A multistage sampling procedure was used to select 378 respondents for the study. The firststageinvolvedthepurposivesamplingofOgunandOyoStates,whileinthelaststage, convenient sampling technique was used toselect 378 cassava-basedfarmers for thestudy. Kobo Toolbox powered questionnaire was used to obtain primary data on farmers' personal characteristics,inputsandoutputsquantities,pricesandriskmanagementpractices.Datawere analysedwithdescriptivestatistics,Translogstochasticoutputandinputdistancefunctions. Resultsshowthat67.0%oftherespondentsweremalewithanaverageage,farmsizeand farmingexperienceof51years,2.1haand12years,respectively.Majority(62.0%)ofthe respondentsrentedfarmlandatH20,000.00/ha/annumwith450kg/haofcassavastemsanda mean output of 12.5tons/ha. Furthermore,respondents expended an average of R6,500/workday, H4,500/ltrandH680/kg onlabour, herbicidesandfertilizers, respectively.Majority (65.6%)of therespondentswere co-operativememberswhile 69.9%obtainedcredits from formal sources and predominantlyused credit for land clearing (73.2%), planting (71.6%), weeding (70.4%) and harvesting (64.5%). The respondents indicate that the major risks facing cassava-based farming were lowcrop yield (87.6%), pest and diseases (73.5%) and inflation (63.1%).Risk management practices commonlyusedbythe respondentswere planting ofearly maturingvarieties (85.6%) anddiversificationoffarmactivities(72.7%) while farm insurance(15.5%) and contractwith off-takers (27.3%) were less commonly practiced. Translog production function showed that the meantechnical,allocativeandeconomicefficiencyoftherespondentswere91.7%,94.8%and 93.7%,respectively.Also,quantityofcassavastem(§=-0.468,p<0.01)positivelyinfluenced iVcassavaoutput,whilefarmingexperience(§=-0.117),creditutilizationratio(§=-0.179E-04), contractwithoff-takers(§=-0.552),diversificationoffarmactivities(§=-3.765)andinsurance offarm(§=-1.504)haveapositiveandsignificant(p<0.01)effectonthetechnicalefficiencyof thecassava-basedfarmers.Priceof land (§=0.080),labour wage (§=0.099),cassava stemprice (§=0.869),fertilizer price(§=0.743)andherbicide price(§=0.133)significantly (p<0.01) influencedthecostofcassavaproductionwhilecooperativemembership(§=0.005,p<0.01)and contract withoff-takers (a=0.006,p<0.01) hadapositiveandsignificant effectoncassava-based farmers' allocative efficiency. The study concluded that the farmers were efficient in cassava production. The study recommended easy access to credit, diversification of farm activitiesandriskmanagementtrainingstoimprovetheproductionefficienciesofthecassava-based farmers.