Farm risks and management strategies among arable crop farmers in Odogbolu Local Government Area of Ogun State, Nigeria

Abstract

This study examines farm risk and management strategies adopted by arable crop farmers in Ogun State, Nigeria. A two-stage sampling procedure was employed to select 120 respondents for the study with the aid of questionnaire. Data were analysed using descriptive statistics, Likert scale and logit regression model. Results revealed that erratic rainfall, pest and diseases were the major production risks faced by the farmers. Ill-health (69.2%) and low produce price (92.5%) were the major personal risk and marketing risk experienced by the farmers respectively. The major financial risks were insurance (86.7%) and lack of access to loan (83.3%) while the major institutional risk was lack of agricultural loan and subsidies (100%) from government. The major preventive strategy adopted by the arable crop farmers were use of agrochemicals and selling at reduced price. The most employed mitigation strategies were diversification (82.5%), on-farm sales (78.3%), esusu (77.5%), cooperative society membership (71.7%) and self-medication (70%). The prominent coping strategies employed were hired labour (77.5%), off-farm activities (73.3%) and borrowing (60%). The significant factors influencing the attitude of arable crop farmers to risk were sex, educational level of the farmers, household size, farming experience, membership of cooperative association, access to bank loan, farming system and off farm income The study concluded that the arable crop farmers were risk averse and recommended that efforts should be geared towards training the farmers on the appropriate management strategies with emphasis on the need for the farmers to adopt innovations that will enhance improved farm practices in the study area.
Keywords: Arable crop, farm risk, management strategies, logit