INCOME DISCRIMINATION-A MANIFESTATION OF INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (IFAD) RICE PROGRAMME IN NIGERIA’S NIGER STATE: INVISIBLE OR INVINCIBLE

Abstract

The present study evaluated the income inequalities between IFAD and non-IFAD rice farmers in Nigeria’s Niger state. Undated data of 2018 cropping season elicited through structured questionnaire coupled with interview schedules from a total of 296 rice farmers (111 IFAD rice farmers and 185 non-IFAD rice farmers) through a multi-stage sampling technique. Tools viz. descriptive statistics, censored regression, Chow F-test statistics, Average treatment effect (ATE) and Oaxaca-Blinder decomposition model were used for data analysis. The findings showed that the programme had effect on the farmers’ income in the short-run; while in the long-run, the non-remunerative product’s price has diffused the impact of the programme on the farmers’ income. However, it was observed that participation in the programme made the average income accumulation of the participated farmers to higher than that of the non-participants. The discrimination difference called programme participation accounts for more than 75% of the income gap, while endowment or characteristics difference accounts for less than 24% vis-à-vis the non-treated groups. Therefore, the programme should link the farmers with the appropriate off-takers in order to insulate them from adverse effect of market imperfection which tends to dampen the rice price during the boom season. Also, the farmers should engage in co-operative marketing and monitor price behavior using market information and intelligence. The scope of programme coverage should be expanded beyond the target group so as to enhance the farm families’ livelihoods; the rural, state and the national economies.

Keywords

• discrimination
• IFAD programme
• income
• Nigeria
• rice farmers