Factors Influencing Tomato Farmers’ Market Participation and Constraints in Production

Abstract

Smallholder market participation is imperative for agricultural growth and development leading to a structural transformation of the agricultural sector which entails a reduction in poverty and food insecurity among rural households in sub-Saharan Africa. This study investigates the factors influencing smallholder farmers' participation in tomato marketing in Akinyele Local Government Area, Oyo State, Nigeria. The objective is to understand the level of participation and the determinants affecting it. The study employs a multistage sampling technique, resulting in 217 usable responses from tomato farmers. The socio-economic characteristics of respondents are described, revealing that the majority are male (94.9%), married (71.9%), and primarily engaged in farming (79.3%). The analysis employs the Market Participation Index (MPI) and a Probit regression model to assess the factors influencing market participation. The findings suggest that 74.7% of farmers have a high level of participation in tomato markets. The Probit regression identifies significant factors affecting participation: marital status, farm size, and source of capital. Being married and having a larger farm size are associated with reduced market participation, while increased access to capital positively impacts participation. The study contributes to understanding the dynamics of smallholder farmers' engagement in market activities, highlighting the importance of financial support in promoting agricultural commercialization. Policymakers and stakeholders can utilize these insights to design targeted interventions that enhance market participation and contribute to rural development.