Agribusiness opportunities for youth in Nigeria: Farmers perceptions and willingness to pay for mechanized harvesting equipment

Abstract

Nigeria is facing two major problems. The high rate of post-harvest losses in rice value chain and high rate of youth unemployment. This study assessed farmers perception on business opportunities for youth as well as farmers willingness to upgrade and to pay for two mechanized harvesting equipment, mini-harvester and reaper that youth can use to provide services. The study is conducted in the two rice development hubs in Nigeria on 290 farmers. Contingent valuation method combine with a two stage approach is used to elicit farmers willingness to pay. Descriptive statistics show that farmers perceive harvesting and threshing as the main business opportunities for youth in rice value chain. Moreover, majority of farmers prefer mechanized harvesting equipment to traditional method and are willing to pay for that with a strong preference to reaper. Compared to the cost of traditional method, farmers are willing to pay 27.33% and 21.59% less respectively for mini-harvester and reaper. Double hurdle model reveals that access to credit, extension, training and perceptions increase farmers willingness to upgrade and to pay. The study suggest many policy actions Key words: Youth, Nigeria, Rice value chain, willingness to pay, contingent valuation Acknowledgement : Authors are grateful to CGIAR research program on rice for financing the study. Thanks to partners of State Agricultural and Rural Development Programs of the two rice hubs, executive of innovation platforms and all enumerators and facilitators in Nasarawa and Kano rice hubs.