Abstract
The study examined the effect of Anchor Borrowers Programme on Profitability and Income of Anchor Borrowers Programme (ABP) beneficiary rice farmers in Kebbi State, Nigeria. A Multistage sampling technique was used to select 500 ABP beneficiary and non-beneficiary rice farmers each giving a sample size of 1000. A well- structured questionnaires were administered to ABP beneficiary and non-beneficiary rice farmers for data collection. Data were analyzed using Descriptive Statistics, Net Farm Income Analysis, Gini-Coefficient and Lorenz Curve. Net Farm Income analysis revealed that both ABP beneficiary and non-beneficiary rice farmers realized net returns of N150, 827.62 and N62, 294.37, respectively per hectare, suggesting that both farmers realized profit. However, rate of return on investment for the two categories of farmers revealed that for every N1.00 invested, ABP beneficiary rice farmers realized N 2.04 while the non-beneficiary rice farmers realized N1.45. The high gain among the ABP beneficiary rice farmers suggest that ABP enhances the profit of the beneficiary rice farmers. Results further revealed Gini-coefficient values of 0.4152 and 0.7012 for beneficiary and non-beneficiary rice farmers, respectively. The result showed that income was more evenly distributed among the beneficiary rice farmers, suggesting that ABP enhances the income of the beneficiary farmers when compared with the non-beneficiary farmers. It is recommended that since ABP enhances the profitability and income of the beneficiary rice farmers, the program should be pursued vigorously in other States in order to improve the living condition of farmers in Nigeria. It is recommended that policies should be tailored towards inclusion of more farmers to benefit from ABP intervention.
Highlights
Rice is a staple food for about 2.6 billion people in the world
Gini Coefficient Model The Gini coefficient was employed to ascertain the pattern of income distribution among the Anchor Borrowers Programe (ABP) beneficiary and nonbeneficiary rice farmers
The Gini coefficient is a measure of inequality among values of a frequency distribution, for example, levels of income, wealth etc
Summary
Rice is a staple food for about 2.6 billion people in the world. It is the most important staple food for large part of the world human population. It is the second highest worldwide production after maize [1]. Since a large portion of maize crops are grown for the purpose other than human consumption; rice is the most important grain with regard to human nutrition and calorie intake [2]. In 2008, Nigeria produced approximately 2 million metric tonnes of milled rice and imported roughly 3 million metric tonnes, including the estimated 800,000 metric tonnes that is suspected to enter the country illegally on an annual basis [4].
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