INCOME INEQUALITY AND INCIDENCE OF POVERTY AMONG RURAL FARMERS IN EKITI STATE, NIGERIA

Abstract

The study focused on sources of income inequality among rural farmers in Ekiti State of Nigeria by determining their poverty level and examining the existence of income inequality among them. A multistage random sampling was used to select 180 respondents from three (3) Local Government Areas out of 16 Local Government Areas in Ekiti State. A structured questionnaire was used to collect primary data from the sampled farmers. The data collected were analyzed using descriptive statistics, Gini coefficient, FGT poverty ratio and probit model. The mean age of the farming household heads was 48.89 years indicating that they were young due to the prevailing life expectancy in Nigeria which is 56years and they were predominantly males. Ninety two percent of the respondents were married with a mean of five members as household size. The study revealed that the respondents were small holder farmers as their mean farm size was 1.7ha and 77% of them acquired formal education. The results also showed that agriculture contributed about 60% of the household income and that farm income was inequality decreasing while off-farm income was inequality increasing. The mean annual per capita income was N153, 966.24 and the poverty line was N102, 644.14. About 60.91% of the rural farming households were non- poor due to the contribution of income from diversified activities to the household income. Gender, Educational level and occupation of spouse influenced the poverty status of the farming household in Ekiti State. In view of the above, it is hereby recommended that Agricultural activities should be promoted by both government and non-governmental agencies among rural farmers in Nigeria, because it remains a major source of livelihood for rural households. Also, direct targeting of the poor household for income transfer, should be considered to help reduce the high level of income inequality in rural Nigeria.