Analysis of Farmers’ Food Price Volatility and Nigeria’s Growth Enhancement Support Scheme

Uduji, Joseph and Okolo-Obasi, Elda and Asongu, Simplice (2020): Analysis of Farmers’ Food Price Volatility and Nigeria’s Growth Enhancement Support Scheme. Forthcoming in: African Journal of Science, Technology, Innovation and Development

Abstract

Food prices in Nigeria have become significantly higher and more volatile since 2012. The purpose of this research was to find out what affects farmers’ participation in the growth enhancement support scheme (GESS) in the country. We determined the effect of the GESS on the ease of access to market information and agricultural inputs that influence price volatility at farm gate level. A total of 2100 rural farmers were sampled across Nigeria’s six geopolitical zones. Result from the use of recursive bivariate probit model showed that farmers depended on the GESS for the resolution of food price volatility by providing food market information and agricultural inputs that bring down the incidence and amount of anxiety-impelled price rise in Nigeria. The results advocated for the need to improve the GESS in line with the agricultural transformation agenda (ATA) by cutting down the deterrents mostly linked with the use of mobile phones, and the distance of registration and assemblage centers. In extension and contribution, the findings suggest that smallholder farmers can be part of the volatility solution when they are provided with rural roads and transportation to get their product to the market, and technology to receive and share the latest market information on prices.

• Item Type: MPRA Paper
• Language: English
• Keywords: Agricultural transformation agenda, recursive bivariate probit model, food price volatility, growth enhancement support scheme, rural farmers, Nigeria.
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa

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