The research was carried out to analyses the effectiveness of cooperatives on agricultural production in Akinyele local government area of Oyo State. This study therefore sets out to determine resources use efficiency of farmers, to...
moreThe research was carried out to analyses the effectiveness of cooperatives on agricultural production in Akinyele local government area of Oyo State. This study therefore sets out to determine resources use efficiency of farmers, to compare the net return of cooperating and non-cooperating farmers and to identity problems faced by farmers.
In this study a total of 100 farmers (50 cooperators and 50 non-cooperators were selected using random sampling technique). The number of farmers interviewed from each town was determined by limited of fund and time constraints. For the analysis input-output data for 2000 crop farming season were collected.
The farmers’ characteristics were studied, and the results showed that the average sampled farmer in an illiterate with considerable experience in crop farming. Most farming in the study area cultivated less than ten hectares of land and in scattered holdings. Education and farm size were found to have an effect on the management techniques adopted by farmers while age was independent of methods of farming.
Cost and returns analysis showed that higher revenue accrued to cooperators than non-cooperators and these were N3,199.12 and N1,128.98 per hectare, respectively. However, net returns per farmers for a mean land area of 5.7ha for non-cooperators. The revenue that accrued to cooperators was higher than that of non-cooperators because cooperators cultivated more are of land than non-cooperators. This is due to the cooperatives funds made available to the cooperators, which has helped them to procure more inputs at moderate prices and at their desired time, which consequently enhanced their agricultural production.
The value of crop output (y) was regressed on the independent variable VIZ; farm size, family labour, hired labour, cost of planting materials, cost of planting materials, cost of fertilizer, cost of chemical, cost of hired tractor and farming experience.
The result of regression analysis revealed that for cooperators the following variables, (farm size, cost of fertilizer, cost of planting materials, cost of chemical and farming experience) were positively signed, an indication of positive relationship with the output’s value which indicated that increase in farm cost, cost of fertilizer, cost of planting materials, cost of chemical and farming experience also brought about an increase in output’s value and vice versa while the cost of hired tractor has a negative correlation with the output’s value, meaning that as tractor hiring cost increases output’s value decreases and vice versa.
For non-cooperators farm size had positive relationship with output’s value while family labour had negative correlation with the value of output.
Production functions were fitted separately for the two groups and the result showed that the double-log function had the best fit with coefficients of multiple determination (R2) of 0.94 for cooperators and 0.54 for the non-cooperators. The R square values were high which showed that much explanation can be offered for the variation in output’s value (Y) by the independent variables, these important determinants of variations in gross returns were farm size, fertilizer, chemicals, crop combination and management techniques practiced by farmers in the two groups. Also, there was significant difference between the technical efficiency of the two groups of farms.
The problem militating against crop farming an Akinyele local government on the basis of the findings are in the following order of importance to the cooperators VIZ: Diseases and pests, transportation problems, inadequacy of farm inputs, climate and edaphic problems inadequacy of credit facilities. While the order of importance of the problems to non-cooperators are as follows, inadequate credit facilities, insufficient farm inputs, transportation problems disease and pests, climate and edaphic problems.
On the basis of these findings, some recommendations are as follows:
(1) Farmers Cooperative society membership should be encouraged among crop producing farmers since this has been shown to increase agricultural production and net returns of farmers.
(2) Government should make credit facilities available to farmers to improve their purchasing power of input, so as to increase agricultural production.
(3) There is need to increase and improve the level of resources (land, labour, fertilizer and planting materials) in order to stimulate agricultural production in the study area.
(4) As was pointed out in the study farmers generally should improve on the farming methods to increase farm production. Therefore, extension services should be intensified and communication between the farmers and extension agent made effective.
(5) Existing agricultural co-operative societies as well as the up-coming ones should be financially assisted by the government. This would not only increase the level of agricultural production to meet various demands but agricultural production would be sustained for the ever-increasing needs for human non-human uses.