ELEMENTS OF RURAL OFF-FARM ECONOMY: EFFECTS OF OFF-FARM INCOME ON PRODUCTIVITY AND POVERTY STATUS OF RURAL MAIZE FARMING HOUSEHOLDS IN KADUNA STATE, NIGERIA

Abstract

This study evaluated elements of rural off-farm economy: effects of off-farm income on productivity and poverty status of rural maize farming households in Kaduna State, Nigeria. This research study was designed specifically to achieve the following objectives: determine the socio-economic characteristics of rural maize farmers, determine the poverty status of rural maize farmers, determine the elasticity of production and return to scale of rural maize production, examine the effect of off-farm income on productivity of rural maize farmers, examine the effect of off-farm income on food security of rural maize farmers, and determine the constraints facing rural maize farming households. The econometric and statistical tools used to achieve stated objectives were; descriptive statistics, Foster, Greer and Thorbecke (FGT) poverty model, elasticity of production, return to scale, Probit model analysis, and Stochastic production frontier model. Age distributions of rural maize farming households (x ̅=39.50 years) shows that 83% of rural maize farming households were less than 50 years. About 69% of rural maize farming households had less than 10 people per household (x ̅=6 people per household).The food poverty line was 4,210.16 Naira (8.77 USD). Poverty incidence 〖(P〗_0),poverty depth 〖(P〗_1) and poverty severity 〖(P〗_2) of rural maize farming households were 0.517, 0.216 and 0.221 respectively. Determinants of productivity of rural maize farming households are farm size (P < 0.05), seed input (P < 0.05), fertilizer input (P < 0.05), chemical input (P < 0.10), and labour input (P < 0.05). In the inefficiency model, level of education (P < 0.05), marital status (P, 0.10), off-farm income (P < 0.05), access to extension agents (P < 0.05) and access to credit (P, 0.10) statistically and significantly reduces the probability of rural maize farming households of being food poor. Factors that statistically and significantly reduces food poverty status among rural maize farming households were gender (P < 0.05), educational level (P < 0.10), extension contact (P < 0.01) and off-farm income (P < 0.01). The retained production constraints facing rural maize farming households in the principal component analysis are lack of credit facilities, lack of fertilizers, lack of improved seeds, bad road infrastructures and lack of extension services.

Keywords

• off-farm income
• productivity
• poverty status
• rural maize farmers
• kaduna state
• nigeria