Effect of Poverty on Participation in Non-Farm Activity in Ibarapa Local Government Area of Oyo State, Nigeria

Abstract

Poverty has become a major constraint to agricultural production in Nigeria, thus the need for Nigerians to venture into non-agricultural activities. This study was designed to determine the effect of poverty on participation in non-farm activities in the study area (Ibarapa Central Local Government Area of Oyo State). In order to accomplish the objectives of the study, data was collected from 120 respondents using interview schedule and the data collected was analyzed using Descriptive statistics and Inferential statistics ( such as Probit model ,OLS Regression model and The Foster , Greer. Thorbecke (FGT) poverty index). This study revealed that about 85.8% of the respondents participate in one non-farm activity or the other and 85.19% of the total household income was generated as no-farm-income and this shows the importance of nonfarm activities and income among the rural households.Result of the FGT model revealed that households who earn there income from nonfarm activities are less poor by all three variants of FGT poverty measure. Within the group of households that participated in nonfarm activities, less than 45% are living below poverty line, compared to about 61% and 59% for farming households and all households respectively. Result of Probit model showed that age of respondents, years of schooling, farm size, access to credit facility, distance to market, level of urbanization and poverty status were significant determinants of participation in non farm activities while age, years of schooling, farm size, market distance, Household assets and poverty status were the determinants of earnings from non-farm activities. The study therefore recommended policies that will promote development of market and road infrastructures in order to promote nonfarm activities which will reduce poverty.

Key Words: Poverty, Participation, Non-farm Activities Rural.