Migrant Remittances and Agricultural Production Under Climate Change: Evidence From Rural Households in Nigeria

Abstract

Majority of Nigeria’s rural poor especially smallholder farmers who rely on agricultural production for their subsistence face considerable difficulties in increasing productivity due to the adverse impact of changes in climate. But migrant remittance has become an important part of the strategy for rural households to cope with negative environmental consequences through reduction in vulnerability to climate variability, improvement in livelihood and expansion in production. An empirical study to measure the impact of migrant remittances on small holder agricultural production was conducted. Through the multistage sampling technique, 120 smallholder farmers were selected and data were collected using questionnaire. Multiple regression analysis based on Cobb-Douglas production function was used to determine the impact of migrant remittance on agricultural production. Result of the analysis revealed that the most critical factors which positively and significantly (p<0.05) influenced the output of remittance receiving households were education, experience, farm size and labour. Findings also showed that the same covariates also influence output of non-remittance receiving households. Policies to increase the inflow of remittances to poorer households engaging in agricultural production would be a rational decision.