Influence of membership of cooperative society on farmers’ income in rural areas of Kwara State, Nigeria

International Journal of Research and Scientific Innovation (IJRSI) | Volume VIII, Issue III, March 2021 | ISSN 2321–2705

Influence of membership of cooperative society on farmers’ income in rural areas of Kwara State, Nigeria

Abigail Gbemisola. Adeyonu^1*, Timothy O. Agboola², Blessing O. Fadeyi³, Bashir A. Tijani⁴, Elizabeth Fisayo Oladapo^5
1,³,⁴,⁵Department of Agricultural Economics and Extension, Landmark University, Omu-Aran, Kwara State, Nigeria
²Department of Agricultural Economics and Agribusiness Management, Osun State University, Nigeria
*Corresponding author

Abstract: Smallholder farmers with small farm sizes, low input utilization, and poor access to effective post-harvest technology are known for low income. These challenges led to the emergence of special programs and social organizations, the most common of which is cooperative society. Yet, little is known about the effect of membership of cooperative society on farmers’ income. Hence, this study examined the influence of membership of cooperative society on farmers’ income in Kwara State, Nigeria. Primary data collected between February and March, 2015 from 191 household heads were used for this study and were analysed using descriptive and inferential statistics. The results revealed that the mean income of farmers who were members of cooperative society, non-members of cooperative society and control group were ₦15,090±₦3,828, ₦17,686±₦18,306 and ₦11,020±₦2,378 respectively. The results of Kruskal Wallis statistic and the asymptotic significant probability, Jonckeere Terpstra test for significance of the mean incomes for the various categories of farmers were significant at 1% level. The results of ANOVA test also indicated the existence of significant difference between the means of the income levels of the three categories of farmers at the 1% level. The results of the Post Hoc test for differences/equality among the various categories revealed that the average income of the control category differs greatly from those of the non-cooperative and cooperative groups but there is no significant difference between the mean income of the cooperative farmers and that of the non-cooperative farmers. Thus, membership of cooperative society had positive effect on farmers’ income in the study area. Based on this, increasing awareness and information about cooperative societies among farmers in the study area becomes imperative.

Key words: Smallholder farmers, cooperative society, income level, membership, stratification

I. INTRODUCTION
The importance of the agricultural sector in Nigeria economy cannot be overemphasized, as it is the second important economic activity after the oil sector. Corroborating this assertion, National Bureau of Statistics (NBS) (2014) submitted that the means of livelihood of about 70% of the labour force are directly linked to agriculture. According to NBS (2014), the contribution of the sector to the Gross Domestic Product stood at about 40.07% in 2010 and 22% in 2014 (pre and post debasing periods respectively). The sector provides food for the ever increasing population and foreign exchange earnings as well as income for farmers. Similarly, Anaekwe (2012), reported that the sector is made up of various sub-sectors, namely: crop production, livestock, forestry fishing and processing of agricultural produce (value addition). There is new emphasis by most organizations as well as governments to focus on the whole value addition from production to markets, thereby making agriculture a business. Also, recent studies and research points to the need to add value to agricultural produce thereby creating more jobs and farmers as well could maximize on their benefits in the process (Pravakaret al. 2010).

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