Effect of Cooperative Membership on Poverty Status of Smallholder Farmers in Yewa Division Ogun State, Nigeria

Abstract

The study assessed the effect of cooperative membership on the poverty status of smallholder farmers in Ogun State, Nigeria. Multi-staged sampling technique was used to select 120 farmers and primary data were collected using a questionnaire. Data were analyzed using descriptive analysis such as percentages, mean, frequency counts and Probit regression. Results showed that an average farmer was 49 years and they possessed adequate and relevant knowledge as to the dealings of the cooperatives because they were averagely educated and most of them were married. The majority of them lived in a rented block apartment. In addition, more than half of the respondents belonged to the non-poor class of the poverty line. It was found that the probability of being poor decreased with an increase in educational attainment, and cooperative experience. Furthermore, the presence of secondary occupation increased the probability of co-operators escaping poverty. The study also confirmed that having access to loans, and amounts of loans accessed could lead farmers out of poverty. The study concludes that farmers in the study area were not poor but needed higher loan amounts to expand their businesses. It is therefore recommended that Cooperative societies should be enlightened through sensitization on the proper utilization of loans accessed as this will help them generate more income that could lift them above the poverty line.