5. Economic impact of the value chain development program on the food security of rice farmers in Nigeria

Author: Olugbenga Omotayo Alabi, Godfrey Ajayi Sunday, Elizabeth Samuel Ebukiba

Abstract

This study evaluated the economic impact of the value chain development program (VCDP) on the food security of rice farmers in Nigeria. Data from primary sources were used. A multi-stage sampling technique was applied to select a total sample size of 292 rice farmers which comprises of 155 value chain development program beneficiaries and 137 non-beneficiaries. Data were analyzed using the following tools: descriptive statistics, food security index, Logit dichotomous regression model, F-Chow test, and t-test. About 61% and 27% of the beneficiaries and non-beneficiaries of the value chain development program were food secured based on head count ratio. The 2/3 MCFE for beneficiaries and non-beneficiaries were 13203.954 Naira and 4759.605 Naira respectively. The significant factors influencing food security among the rice VCDP beneficiaries were the following: gender (P< 0.10), household size (P< 0.01), farm experience (P< 0.10), access to credit (P< 0.05), and labour input (P< 0.10).  The F-Chow test conducted reveals that the VCDP impacted positively on the food security of rice farmers. The study recommends that interest rate free loans or low-interest loans should be made available to rice farmers to increase production and food security.

Keywords: economic impact, food security, Value Chain Development Program, rice farmers, Niger State Nigeria