ANALYSIS OF HOUSEHOLD SAVINGS BEHAVIOUR OF DRY SEASON RICE FARMERS IN GOMBE STATE, NIGERIA

Abstract

The study examined socio-economic determinants of household savings and constraints behaviour and poverty status of small-scale dry season rice farmers in Gombe State. A multi-stage sampling technique was used to select 357 respondents from eighteen villages for their popularity in rice production. Data were collected using structured questionnaires and were subjected to descriptive statistics for analysis. The results revealed the mean age of rice farmers was 38.76 years, 84.31% were males, 89.08% were married with mean family size of 7 persons. Also, majority (78.43%) of the farmers had formal education, with 10.51 years of experience and average farmland size holding of 1.67ha, having mean annual farm income of ₦ 846,337.10. The result also, revealed 62.34% of the farmers were savers. While the average propensity to save was 0.1634 implying 16.34% of the total households’ incomes were saved; the marginal propensity to save derived from simple linear regression model was 0.1406 meaning, holding other factors constant; one-naira increase in the total farm income will result to 0.1406 level increase in household’s savings. The study concluded that, obviously the increase in savings propensity among farming households may indicate their income growth and improved financial situation and hence, brings about changes in their standard of living and as well improve their farm productivity. Thus, the higher level of income occasioned by the expansion in productivity could translate into a higher level of savings. Therefore, government should provide favorable conditions for rural investment, so as to enhance expansion into other non-farm activities.