Agricultural Price Fluctuation and Its Effects on Small-Scale Farmer Income: A Case of Maize Crop in Kilolo District

Abstract

This study examined the agriculture crop price fluctuation and its effects on small-scale farmer income in Tanzania, specifically in Kilolo District in Iringa Region. The study sampled 90 respondents, where 84 respondents were for structured questionnaire and 6 for interviews. Simple random sampling and purposive sampling techniques were used to collect data. The mixed-methods data were analysed using linear regression estimation techniques, estimated Ordinary Least Squares estimator, and content analysis for qualitative data. The study revealed that Agriculture cash crops positively influence the yearly income of small-scale farmers, signifying that increased engagement in cash crop cultivation contributes to higher income levels for these farmers. Conversely, the study unveiled the negative implications of crop price fluctuations on small-scale farmers’ yearly income, demonstrating that erratic price variations can substantially challenge their economic stability. These findings were robustly supported by statistical analyses, including the t-test and regression analysis, which underscored the significance of Agriculture cash crops and crop price fluctuations as determinants of small-scale farmers’ yearly income. The adjusted R² value of 0.607 further substantiated these results, signifying that the independent variables, Agriculture cash crops, and crop price fluctuations account for approximately 60.7% of the variation observed in the dependent variable. In such a sense, small-scale farmers’ yearly income is determined by agricultural cash crops done by small-scale farmers and the crop prices fluctuation in the markets. There is a need for marketing officers to provide marketing information to small-scale farmers from time to time for small-scale farmers to be aware of cash crop price fluctuations and what kind of cash crops will have a higher market value, hence lowering the level of price fluctuation in the markets. Such a move would increase small-scale farmers’ yearly income in Kilolo District