Effects of Social Capital Dimensions on Income of Cocoa Farming Households in Osun State

Abstract

Cocoa’s contribution to the economic development of Nigeria is enormous. However, in recent years, income of cocoa farming  households has reduced tremendously due to a number of factors. Participation in social groups could increase the households’ income through its benefits, social capital dimensions. Therefore, the study investigated the effects of social capital dimensions on the income of cocoa farming households in Osun State. Multistage sampling procedure was used to select 100 respondents for the study. Data were analyzed using descriptive statistics, social capital indices, farm budgetary techniques and OLS regression model. The results of the study showed 49 years for age, 16 years for year of experience, 6 persons for household size and 6 hectares for farm size. The results also revealed that six dimensions of social capital namely cash contribution, labour contribution, decision-making, meeting attendance, heterogeneity and density of membership were available to the households. The estimated costs and return to cocoa farming households per hectare of land on the average were ₦243,671 and N540,306.4 per annum, while return per naira outlay was ₦2.217 and the benefit cost ratio was ₦2.71. OLS estimates showed that age, farming experience, and social capital dimensions such as decision making and meeting attendance significantly influenced the income of cocoa farming households. The study  concluded that social capital dimensions are among important variables influencing the income of cocoa farming households. The study therefore recommends that members of cocoa farming households or household head should be encouraged to be members of farmers’ organization and also actively participate in the decision-making process of the organization. This can be achieved through
regular meeting attendance.

Keywords: Cocoa, Farming households, Social capital, Income, Osun State