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Determinants of Food Crop Diversity and Profitability in Southeastern Nigeria: A Multivariate Tobit Approach

Author

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  • Sanzidur Rahman

    (School of Geography, Earth and Environmental Sciences, University of Plymouth, Drake Circus, Plymouth, PL4 8AA, UK)

  • Chidiebere Daniel Chima

    (School of Geography, Earth and Environmental Sciences, University of Plymouth, Drake Circus, Plymouth, PL4 8AA, UK)

Abstract

The present study jointly determines the factors influencing decisions to diversify into multiple food crops ( i.e. , rice, yam and cassava) vis-à-vis profitability of 400 farmers from Ebonyi and Anambra states of Southeastern Nigeria using a multivariate Tobit model. Model diagnostic reveals that the decisions to diversify into multiple crops and profits generated therefrom are significantly correlated, thereby justifying use of a multivariate approach. Results reveal that 68% of the farmers grew at least two food crops and profitability is highest for only rice producers followed by joint rice and yam producers, which are mainly for sale. Farm size is the most dominant determinant of crop diversity vis-à-vis profitability. A rise in the relative price of plowing significantly reduces profitability of yam and rice. High yield is the main motive for growing yam and cassava whereas ready market is for rice. Other determinants with varying level of influences are proximity to market and/or extension office, extension contact, training, agricultural credit, subsistence pressure and location. Policy recommendations include investments in market infrastructure and credit services, land and/or tenurial reform and input price stabilization to promote food crop diversity vis-à-vis profitability in Southeastern Nigeria.

Suggested Citation

  • Sanzidur Rahman & Chidiebere Daniel Chima, 2016. "Determinants of Food Crop Diversity and Profitability in Southeastern Nigeria: A Multivariate Tobit Approach," Agriculture, MDPI, vol. 6(2), pages 1-14, April.
    • Handle: RePEc:gam:jagris:v:6:y:2016:i:2:p:14-:d:67401
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    5. OBISESAN, Adekemi & AWOLALA, David, 2021. "Crop Diversification, Productivity And Dietary Diversity: A Gender Perspective," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 24(1), March.
    6. Abigail Gbemisola Adeyonu & John Chiwuzulum Odozi, 2022. "What are the Drivers of Profitability of Broiler Farms in the North-central and South-west Geo-political Zones of Nigeria?," SAGE Open, , vol. 12(1), pages 21582440211, January.
    7. Fatch, Paul & Masangano, Charles & Hilger, Thomas & Jordan, Irmgard & Mambo, Isaac & Kamoto, Judith Francesca Mangani & Kalimbira, Alexander & Nuppenau, Ernst-August, 2021. "Holistic agricultural diversity index as a measure of agricultural diversity: A cross-sectional study of smallholder farmers in Lilongwe district of Malawi," Agricultural Systems, Elsevier, vol. 187(C).
    8. Sanzidur Rahman & Chidiebere Daniel Chima, 2018. "Determinants of Pesticide Use in Food Crop Production in Southeastern Nigeria," Agriculture, MDPI, vol. 8(3), pages 1-14, February.
    9. Amolegbe, Khadijat Busola & Fontep, Eugenie Rose & Ahodode, Bernadin Géraud Comlan & Pagal, Emmanuelle Dorcas Mbanga & Ardelkrim, Araar, 2023. "Gendered Effects of Crop Diversification and Climate Shocks on Household Food Security Status in Nigeria," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334551, Agricultural Economics Society - AES.

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