The effects of input subsidies and output pricing policies on food crop production in Nigeria: A case study of maize farmers in Obokun local government area of Oyo state
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Date
1985
Authors
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Publisher
Obafemi Awolowo University, Ile Ife, Nigeria
Abstract
production in Nigeria using the maize farmers of Obokun Local Government Area of Oyo State
as a case study. Data were collected from 100 randomly selected samples and the data covered
the Socio-economic backgrounds of farmers, costs, yield and revenue involved in the maize
production. The data were summarized and analysed using regression Statistical method.
The result of the analysis indicated that;
(a) Majority of the farmers were not aware of the Government subsidy on inputs and that the
inputs were not easily available to the farmers when actually needed,
(b) About 62% of the farmers one time or the other sold their maize through the commodity
Board but majority of them (precisely 96.78%) no longer sell their maize through the commodity
Board because they are not satisfied with prices being offered since these prices are actually
lower then what is obtainable in the open market, and also far below the cost of maize
production.
(c) As regards cost of production the study showed that while the import Parity price and
Guaranteed Minimum Price for a tonne of maize in the 1983 production season were N185.00
and N210.00 respectively, the cost of production stood at #402.93 for the same period, in which
case the cost of production appeared to be higher then the Guaranteed Minimum Price for that
season.
(d) Maize input prices including subsidies; and maize output prices are important determinants
of the quantity of maize production.
Policy recommendations advanced in the study include the involvement of the private sector in
the importation and distribution of inputs particularly the use of Farmers Cooperatives in
fertilizer distribution. Also stressed was the need to have realistic guaranteed prices which cover
the cost of maize production.
Description
72p
Keywords
Food, Food crops, Income, Socio-economic factors, Government policy, Fertilizer, Price, Maize, Distribution channels, Farmers cooperatives societies