EFFECTS OF INCOME DIVERSIFICATION ON FOOD SECURITY OF SMALLHOLDER RICE FARMING HOUSEHOLDS IN OGUN STATE, NIGERIA

Abstract

ABSTRACT Income diversification by farmers can positively impact their food availability, accessibility and stability. Hence, this study examined the effects of income diversification on food security of smallholder rice farming households in Ogun State, Nigeria. Multi-stage sampling technique was used to select 160 rice-farming households in Ogun State. Structured questionnaire was used to obtain data on socioeconomic characteristics, food expenditure and income diversification of the rice farming households. Data were analyzed using descriptive statistics, Simpson index, Food Expenditure Approach, Tobit Regression and Ordered logit Regression. The results showed that 63.1% of the household heads were male, 55.6% were married, 88.7% had some form of formal education with mean age and monthly income of 48 years and ₦57,858.33k respectively. Most (69.4%) of the respondents had access to credit. However, 98.1% derived income from the sale of farm produce, 86.3% from petty trading, 76.9% from cash and tree crops and 75.0% from artisanal fishing activities. The average income diversification index was 0.59. The result of tobit regression showed that sex of household head (β = 0.0178), marital status (β = 0.1289), farming experience (β = 0.0042) and access to credit (β = 0.1778) significantly (p<0.01) influence income diversification. Most (68.2%) of the farming households had very low food security status. The result of the ordered logit regression showed that sex of household head (β = 1.8662), farming experience (β = -0.1721), access to credit (β = -4.8067) and income diversification index (β = 19.1417) had significant (p<0.01) effect on food security status of rice farming households in the study area. The study concluded that income diversification significantly affects the food security status of rice farming households in the study area. Therefore, rice farming households should be trained on how to effectively diversify their income in the study area so as to enhance food security.