Off-Farm Incomes Share and Farm Investment in North-Central, Nigeria: The Heckman Selection Model Approach

1
Ogbanje, Elaigwu Christopher
Ogbanje, Elaigwu Christopher
2
Ogbanje
Ogbanje
3
Elaigwu Christopher.
Elaigwu Christopher.
4
Chidebelu
Chidebelu
5
Sonny A.N.D.
Sonny A.N.D.
6
Nweze
Nweze
7
N.J.
N.J.
1 University of Agriculture

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The study evaluated the probability of investing offfarm income’s share of household income in farming among small-scale farmers in North-Central Nigeria. Multistage sampling technique was used to select 360 respondents. Primary data for the study were analysed using Heckman’s two-stage selection model. The lambda of the model was 1.38%, while the chisquare was significant. While education, household size and operating profit margin significantly (p < 0.05) increased the probability of off-farm work participation, education, total crop revenue, primary occupation, farm asset to household asset ratio, and asset turnover ratio significantly (p < 0.05) increased investible off-farm income's share. Thus, factors in the business environment, other than government policies, shape off-farm work and farm investment decisions. Therefore, policy thrust should focus on interest and tax rates reduction and ease of farm asset acquisition for small-scale farmers.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Ogbanje, Elaigwu Christopher. 2015. \u201cOff-Farm Incomes Share and Farm Investment in North-Central, Nigeria: The Heckman Selection Model Approach\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 15 (GJHSS Volume 15 Issue E3): .

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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 149999
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May 15, 2015

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English

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The study evaluated the probability of investing offfarm income’s share of household income in farming among small-scale farmers in North-Central Nigeria. Multistage sampling technique was used to select 360 respondents. Primary data for the study were analysed using Heckman’s two-stage selection model. The lambda of the model was 1.38%, while the chisquare was significant. While education, household size and operating profit margin significantly (p < 0.05) increased the probability of off-farm work participation, education, total crop revenue, primary occupation, farm asset to household asset ratio, and asset turnover ratio significantly (p < 0.05) increased investible off-farm income's share. Thus, factors in the business environment, other than government policies, shape off-farm work and farm investment decisions. Therefore, policy thrust should focus on interest and tax rates reduction and ease of farm asset acquisition for small-scale farmers.

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Off-Farm Incomes Share and Farm Investment in North-Central, Nigeria: The Heckman Selection Model Approach

Ogbanje
Ogbanje
Elaigwu Christopher.
Elaigwu Christopher.
Chidebelu
Chidebelu
Sonny A.N.D.
Sonny A.N.D.
Nweze
Nweze
N.J.
N.J.

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