Determinants of Income Diversification Strategies among Smallholder Cashew Nut Farmers in Nigeria

Abstract

The study examined the determinants of income diversification strategies among cashew nut farmers in Kogi State, Nigeria. It determined the socio-economic characteristics, status of income diversification and factors influencing income diversification among the cashew nut farmers. A multi-stage sampling procedure was used to select 150 respondents for the study. Primary data were collected with the aid of structured questionnaire. Descriptive statistics, diversification index, mean of income share approach and Tobit regression model were employed to analyse the data. The results revealed that the farmers were literate with 73.4 percent having secondary school education and above. They had small holding farm with over 80% cropping between 1-5 hectares and with average farm size of 3.7 hectares. The farmers were involved in different income sources with civil service jobs, arable crop farming and livestock farming were the major farming system used by the farmers. The determinants of income diversification in the study area were education, household size, income, extension visit and extension contact and these variables were positively related to income diversification.  The study concluded that, the respondents in the study area adopted multiple income generating activities with only 6.7 percent of the farmers had income generating of one (1) were civil service remained the dominant income source for the respondents. Socio- economic characteristics of the respondents were positively and significantly related meaning that as socio-economic characteristic increases the income diversification of the respondents' increases. Therefore based on the findings the following are recommended; training of farmers to improve their knowledge should be encourage, provision of credit facilities, extension  agents trainings should be made available to the farmers since it has significant effect for the farmers in creating different livelihood activities.