FACULTY OF AGRICULTURE
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Item Welfare Effects of Policy-induced Rising Food Prices on Farm Households in Nigeria(AgEcon search, 2014) Shittu, A. M.; Obayelu, O.A.; Salman, K. K.Against the background that domestic policies in Nigeria have been linked to an endemic - high, volatile and rising food prices in the country, this paper empirically examined the transmission of key monetary policy variables to domestic food prices in Nigeria. Furthermore, the study employed estimates of policy induced price changes from estimated cointegrating relations between commodity prices and policy variables, and demand elasticities from a system of household demand equations to estimate the associated compensating variation as a measure of the welfare impacts on farm households. The study found that government management of exchange rates and money supplies as well as withdrawal of subsidies from petroleum products have been the main driver of rising food prices in the country. While an average farmer was found to have benefited from the policy induced rising food prices with the mean compensated variation of -3.3% of the household budget, most of the farm households ended up being losers. The gainers were mostly owners of the relatively few large farms (-36.9%) including the commercial livestock farms (-38.9%), rice farm (-35.0%), and fish farms (-27.8%). Smallholders, which constituted about three-quarter of the farm households, lost on the average, about 8.1% of their purchasing power to the rising food prices, with female headed households also loosing 6.6% of their purchasing power.Item Does credit constraint in agriculture influence choice of nonfarm activities?(ISDS LLC, 2019) Adepoju, A.O.; Omolade, O.K; Obayelu, O.A.Agriculture is less becoming the main source of livelihood in rural Nigeria owing to high climatic risks, poor returns to investment and lack of modern tools. Thus, rural households are beginning to diversify their livelihoods from farming into non-farm activities, as alternative income sources. However, investment in non-farm income generating activities that yield higher returns require in most cases credit availability and accessibility. A household’s participation in and choice of nonfarm activities is thus expected to vary significantly between those who have access to credit and those who do not. However, recognition of the widespread nature and possibly far-reaching impacts of credit on non-farm income activities is scarce. This study examines the link between credit constraint status of rural households and their choice of nonfarm activities. Descriptive statistics, Probit and Multinomial Logit Regression models were employed for analysis. Results revealed that trading, artisanship and commercial transportation activities were the major non-farm activities engaged in by the households. A household credit constrained status also significantly influenced the choice of non-farm activities. Credit constrained households were more likely to participate in commercial transportation activities relative to other non-farm activities owing to its less capital-intensive nature. Promoting access to credit is thus pertinent and should be of utmost priority in the design of any programme for rural households in Nigeria.