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EFFECT OF MEMBERSHIP OF GROUP-FARMING COOPERATIVES ON FARMERS FOOD PRODUCTION AND POVERTY STATUS IN NIGERIA

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EFFECT OF MEMBERSHIP OF GROUP-FARMING COOPERATIVES ON FARMERS FOOD PRODUCTION AND POVERTY STATUS IN NIGERIA

 

 

Abstract

The problems of agriculture affect mostly the small scale farmers who have small fields in different places. Group farming cooperatives serve as good alternative to boost food production as well as lifting people out of poverty. In this study we used a recent survey data in Nigeria to examine the effect of membership of group-farming cooperatives on food production

and poverty status. Probit regression model estimate is used to analyse the decision to join

group farming cooperatives and the effect of membership of group-farming cooperative on poverty status and ordinary least square is employed to examine the effect of membership of group-farming cooperatives on food production and productivity of farmers. We find that, group-farming cooperatives have positive and statistically significant effect on food

production at 5% level of significance; prevalence of poverty is higher among non-members of group-farming cooperatives. Being a member of other forms of cooperatives also helps to

reduce poverty in the farming households. Therefore, we recommend that both the governments and non-governmental organization should develop strategies that will encourage

participation in group-farming cooperatives and also create more awareness among farming households, which can motivate more farmers to partake in this form of farming techniques. Key words: Group-farming, cooperative, food production, poverty status, probit regression, OLS.