Small Holder Commercial Groundnut Production and Its Effect on Poverty Alleviation in Dass, Nigeria

Abstract

The paper examined small holder commercial groundnut production and its effect on poverty status of groundnut farmers in Dass Local Government Area of Bauchi State. Data for the study were collected using questionnaire administered to the respondents who were selected using random sampling technique. The data collected were analyzed using commercialization index, Foster Greer and Thorbeck (F.G.T) and Tobit regression model. The result showed that most of the small holder farmers grow their groundnut for commercial purpose ostensibly to raise their income portfolio. From the FGT analysis, the poverty line was constructed to be at per capital monthly expenditure equal (₦7,752.22). The poverty count index (P0) for the household was 60%. This means that 60% of the farming households in the study area were poor. The Tobit regression result showed that the variable poverty status was negatively significant. This implies that enhancing the farmer’s status will probably lead to an increased in commercialization. On the other hand, education, part-time occupation and distance to market were positively significant. It is therefore recommended that to alleviate the poverty status of the farmers, they should be encouraged to see groundnut farming as a business and not as subsistence venture. In this regard, infrastructural facilities (market stalls and roads) should be provided. Also, an enabling environment for small scale industries that utilized groundnut should be facilitated by the government. This will encourage the farmers to produce more and in return earn more, and consequently improve their socio economic well-being.