DETERMINANTS OF INCOME DIVERSIFICATION AMONG COCOA FARMERS IN ONDO STATE, NIGERIA

Abstract

This study examined the determinants of income diversification among cocoa farmers in Ondo state Nigeria. The study examined the socio-economic characteristics of cocoa farmers in the study area; identify other sources of income among cocoa farmers; analyze factors influencing income diversification among cocoa farmers and identify constraints to cocoa production in the study area. The primary data used for this study were collected through the administration of well structured questionnaire. A multistage sampling procedure was used for the study, the first stage was through a purposive selection of Idanre and Ile-Oluji/Okeigbo local government area because of the prevalence of cocoa farmers in the area. The second stage involved random selection of two communities from each local government area. Also simple random sampling was used at the third stage to select 30 respondents from each community to a total sample size of 120 respondents. Descriptive statistics such as mean, percentage and frequencies were used to examine the socioeconomic characteristics of the respondents. Tobit regression model was used to determine the factors influencing income diversification among the respondents. Mean income share approach was used to determine the share of income from each sources in the total income of the cocoa farmers. The study revealed that cocoa farmers practiced different income generating activities in order to augment their income which were mainly off-farm income generating activities. These include :transportation business, handcrafts, trading, civil service, and real estate. Majority (33.3%) of the cocoa farmers in the study area were within productive age with the mean age of 47.7 years. in the case of sex, cocoa farming is male dominant which account for 83.3% of the respondents in the study area. Both farm and non-farm activities were important sources of income to the cocoa farmers in the study area. Cocoa farming contributed the bulk of income generated by the respondents in the study area with the mean income share of 40.5%. thus, farm income contributed a total of 69.76% while non farm income contributed a total of 30.24% mean of income share respectively. Six of the nine variables ( sex, household size, labour cost, educational status, farm size and amount of credit) significantly influenced income diversification at 1% and 5% probability level respectively. The study showed that cocoa farmers were faced with a number of constraints which include insects and diseases, bad roads, lack of storage facilities, lack of improved seeds, inadequate capital, inadequate extension agent, high cost of inputs and climate change. The study therefore recommended that government and non governmental agencies should sensitize the farmers on awareness of climate and strategic measures against climate change. Government and financial institution should make credit facility to be accessible to rural dwellers and proper orientation should be given to them on credit utilization so that the credit could have positive influence on their livelihood. Furthermore, government should pay more attention to agricultural extension programs through recruitment and training of adequate extension workers in other to meet the need of the cocoa farmers.