Enterprise Combinations in Cassava Based Food Crop Farming System in Nigeria: Evidence from Ogun State

This study examines the enterprise combination in cassava based food crop farming system in Ogun state. Three stage sampling technique was used to select 120 cassava farmers from the study area. The data were analyzed using descriptive statistics, economic land equivalent ratio (ELER), linear programming and stochastic production frontier to actualize all the objectives. Descriptive statistics was employed for the description of socio-economic characteristics while economic land equivalent ratio (ELER) and linear programming were used for cost-return structure and optimal combination of crops in cassava based farm enterprises respectively. Descriptive statistics shows that most of the farmers are in their late forty with the mean age of the farmers being 48.2 years with 6years of formal education and wealth of farming experience of about 19 years. The farmers cultivated area of land that varies between 0.5ha and 5 hectare with a mean of 2 hectare. All enterprise combinations are profitable; however, cassava/maize/vegetable production enterprise is the most profitable with net farm income of N36649.90 per hectare closely followed by cassava /maize with N36462.67 per hectare. The optimal cassava based combination was actualized by linear programming model which shows that cassava/maize and cassava/maize/vegetable are the optimal combination because only the two combinations contributed to the gross margin and also added zero opportunity cost to the total cost of production. The result also shows that land and capital are the limiting resources whereas labour is not which means that for optimal cassava based production land and capital investment should be increased. In lieu of these findings, farmers in Ogun state farmers should intercrop cassava, maize and vegetables or intercrop cassava and maize, this will not only increase their net farm income per hectare, it will also ensure flow of income during on and off seasons. Farmers should also increase the utilization of the limiting resources, that is capital base and hectrage of land cultivated

Determinants of rural bank loan repayment capacity among farmers in Yewa Division of Ogun State, Nigeria

This study examined the determinants of the Nigeria Agricultural Cooperative and Rural Development Bank (NACRDB) repayment by farmers in Yewa division of Ogun State. Primary data collected through scheduled interview with the help of a structured questionnaire as well as secondary data were used for this purpose. Descriptive analytical tools, linear discriminate function, and multiple regression analysis were used to analyze the data collected. Results show that majority of the respondents attributed reasons for loan default to production failure due to weather, pests, diseases and poor storage (72.5%). Furthermore, a good proportion of loan defaulters (52.5%) use the loan for farming. Discriminate analysis conducted shows that the total annual income of the household heads, other occupation of the respondents and membership of cooperative society are the most significant variables that discriminate between rural bank users and non-­‐users. The regression analysis shows that the most important variable for loan repayment is farm size (hectares) accounting for 32% of the variations in repayment level of the credit user, followed by farm income(0.29%). It was suggested that NACRDB loans should be disbursed through farmers’ cooperative society, with adequate monitoring and supervision