FACTORS INFLUENCING FARMERS INCOME IN GROUNDNUTS VALUE CHAIN IN WESTERN AGRICULTURAL ZONE OF BAUCHI STATE, NIGERIA

Abstract

The study examined the factors influencing farmers’ income in groundnuts value chain in western agricultural zone of Bauchi State, Nigeria. Multistage random sampling technique was used in selecting 180 respondents. Data were collected using structured questionnaire. Data collected were analysed using descriptive and inferential statistics. The result reveal that farm size (P≤ 0.05), household size (P≤ 0.05), fertilizer (P≤ 0.05) labour (P≤ 0.05), farming experience (P≤ 0.01) and seeds (P≤ 0.01) were the significant factors influencing the income of groundnut producers. The result of factors influencing groundnut marketing reveal that age (P≤ 0.01), price of groundnut (P≤ 0.01) and transportation (P≤ 0.01) were the significant factors influencing the groundnut marketing while income (P≤ 0.01), membership of cooperatives (P≤ 0.01) and educational level (P≤ 0.05) were the significant factors influencing the groundnut processing. However, the major constraints faced by groundnut producers were high cost of labour (68.0%), lack of access to credits (64.0%) and inadequate capital (60.0%), while the groundnut marketers were constrained by inadequate capital (75.0%), high cost of labour (70.8%), tax (70.8%) and seasonality (66.7%). The study concluded that household size packaging and prices of the groundnut significantly influenced the marketing income of the respondent. Similarly, household size, farming experience, farm size, fertilizers and labour were the affecting the productivity while sex, membership of association price and cost of groundnut oil significantly affect the income of groundnut processors in the study area. It is recommended that groundnut value chain actors should participate in cooperative membership to take advantage of economies of scale. Government should provide incentives and high quality seeds to groundnut value chain actors in the study area.