Effect of non-farm income on poverty status among rural farmers in southwest Nigeria

Abstract

The study examined poverty level and the use of non-farm activities as coping strategy among farmers in Osun and Oyo states representing the southwest Nigeria. Data were collected with the aid of a structured questionnaire administered to 240 respondents randomly selected from both states. Data collected were analysed using descriptive statistics and Tobit regression model to examine the determinants of poverty status. The findings revealed that 43.3% and 30.0% of the respondents were between the age range of 41–50 years in Osun and Oyo states respectively. Majority of the farmers are formally educated and engage in farming activities as primary occupation. The average monthly farm income for farmers were 28, 708 ($191) and 36, 321 ($242) while non-farm income were 33, 440 ($222) and 47, 845 ($319) for Osun and Oyo states respectively. Result also showed that 72.5% and 74.2% of the respondents were core and moderately poor. Tobit analysis revealed that poverty significantly increased with age but decreased with farm and non-farm income in Osun and Oyo states. In order to reduce poverty, it is recommended that favourable conditions be created for farmers in nonfarm activities given the higher average income. However, agricultural production needs reinvigoration to avoid total shift from farm to non-farm activities.