IMPACT OF COMMERCIAL AGRICULTURE DEVELOPMENT PROJECT

CHAPTER ONE

INTRODUCTION

1.1         Background to the Study

In recent years, attention has been drawn to the need to improve the business environment for agriculture to become more successful by gradually shifting from subsistence to commercial agriculture. Commercial transformation of subsistence agriculture is an indispensable pathway towards the development of the agricultural sector of any economy. Commercial agriculture stems from the need to improve food production, engage more farmers and enhance sales of agricultural products. Hence, the need for empowerment programmes to support farmers meet up with the increased demands of commercial agriculture.

Empowerment has assumed a prominent role in rural and agricultural development with support to farmer groups and organisations entering the dialogue between donors and governments in Asia and Africa (Mohammad, 2012). A central argument used by donors for supporting farmer empowerment is that there is a strong relation between farmer empowerment and such development outcomes as poverty reduction, improved agricultural opportunities for growth and better governance. More so, is that empowerment can give greater ownership to a project and to a particular direction in development. The UNDP document (2002) states that ownership is the acceptance of responsibility through the process of stakeholder participation, empowerment and concensus. In the words of Rifkin (2003), empowerment is a mechanism or process through which individuals, organizations and groups can work on things and have more control over what they are involved in. So that individuals, organizations and groups with a high power could control the resources, build confidence, make capacity and have an active participation in managing their life.

Hence, the concept of farmers‟ empowerment is an integral part of almost all intervention programmes by government, international and non governmental organisations. Intervention in the area of farmers‟ empowerment is necessitated by the prevalence of food scarcity, abject poverty and low standard of living among rural dwellers, mostly farmers. All these factors or indicators are reasons behind the unsatisfactory nature of the performance of the agricultural sector and farmers in Nigeria. However according to Alsop (2005), the indicators which directly affect the empowerment of farmers include having access to the inputs, credit, infrastructures, information and taking part in social decision making. Training is also an essential component in the empowerment process (Fleming, 2000). Farmers‟ empowerment goes hand in hand with the modernization theory of development as both concepts are related to agricultural development. Modernization theory assumes that agriculture progresses from being oriented towards subsistence farming that occurs on small plots to commercial farming of large scale; one that is characterized by the availability of mechanized production, improved seeds, storage facilities, access roads, market opportunities, modern equipment, etc. These empowerment opportunities have immense potentials for enhancing the productivity of commercial farmers in the State towards a greater impact on the society.

Nigeria‟s agriculture remains largely subsistence-based with 90% of agricultural output coming from rural farmers/small farms (Oluwatayo et al, 2008). However, successive administrations ignored agriculture and failed to expand the economy beyond overdependence on oil sector and even if effort is made, with the initiation of strategic programmes and policies for agricultural transformation, it falls short of being realized as adequate measures are not taken to sustain such programmes.

As articulated in its National Economic and Empowerment and Development Strategy (NEEDS), Nigeria is seeking options to diversify into non-oil sources of growth and away from over dependence on oil and gas. The agricultural sector is seen as one of the main sources of growth and important option for the diversification. Development of commercial agriculture affords at least in the short-to-medium term, the opportunity to increase employment and reduce especially persistent rural poverty. Diversification into commercial agriculture is important for making growth sustainable, to diffuse its benefits to rural areas, and to hedge against the shocks from a single resource dependence on oil.

Agricultural productivity in Nigeria has not grown sufficiently due to under-investment in new technology, slow adoption of existing improved technologies, constraints associated with the investment climate, and lagging infrastructure. Public interventions to accelerate agricultural growth such as the Fadama programme have targeted poor farmers engaged in largely subsistence production with modest interaction with the markets to the detriment of commercialization.

Recently, government is well disposed to empowering small and medium-scale commercial agriculture with assistance from the World Bank. This translates into the ongoing Commercial Agricultural Development Project (CADP) which is being piloted in five states of the Federal Republic of Nigeria including Kaduna State. It is expected that the project would help to promote access of participating small and medium scale commercial farmers to improved agricultural technologies, infrastructure, funds and product markets. It will also provide an investment climate through policy or regulatory mechanisms and other appropriate complementary instruments.

The CADP is a comprehensive five-year project developed by the Federal Ministry of Agriculture and Water Resources (FMAWR) in collaboration with the World Bank and other stakeholders to help participating small and medium scale commercial farmers access improved technological training, finance and output markets. The major objective of the project is to promote the commercialization of agriculture on a sustainable basis that will positively enhance farm output and income. The income effect will largely depend on the appropriate value addition and marketing of the products. Marketing of agricultural products suffer from an array of problems ranging from improper pricing, poor market infrastructure, including rural roads and local markets, inappropriate storage and processing technologies to inadequate market information system.

It is against this backdrop that this study seeks to access the impact of Kaduna State Commercial Agriculture Development Project (CADP) on farmer‟s empowerment vis-à-vis the objectives of its establishment.

1.2         Statement of the Research Problem

Over the years, several agricultural empowerment programmes have been introduced to reduce abject poverty among rural dwellers, mostly farmers, in sub-Saharan Africa and also improve their standard of living. Some of these programmes include: United Nations Development Programme (UNDP), International Fund for Agricultural Development (IFAD), Agricultural Development Programmes (ADP), Food and Agricultural Organisation (FAO), and National Economic Empowerment and Development Strategy (NEEDS), The Directorate of Food, Roads and Rural Infrastructure (DIFRRI), National Orientation Agency (NOA), National Accelerated Food Production Programme (NAFPP), Green Revolution (GR), Operation Feed the Nation (OFN), etc. (World Bank, 1993; World Bank, 1995a; World Bank, 1995b; World Bank, 1996; Hashmi and Sial 2007; IFAD 2001), but it seems that these efforts have yielded little or no impact on the rural population, as argued by Afolayan (1997). Supporting this view, Agwu and Abah (2009) argue that the various attempts by Nigerian government in initiating agricultural development programmes aimed at achieving food security have failed (e.g. as seen in the second National Fadama Development Project) In addition, Adekeye and Bello (2013) posits that, in spite of many policies on development programmes by the government, the physical and socio-economic conditions in most of the communities in Nigeria do not seem to have improved significantly.

The Kaduna State Commercial Agriculture Development Project objectives are: to provide access to funds (in the form of matching grant) to farmers; improved market; and technological training for increased agricultural output and income. Thus, despite the claim of provision of matching grant to farmers through the Commercial Agriculture Development Project‟s over three million dollars ($3,000,000) so far accessed by Kaduna State government (KDSCADO, 2014 Report), the extent of farmer‟s performance, empowerment and agricultural output is still below expectations. Reiterating this position Onyeahialam (2002), observed that for more than two decades now, the agricultural sector of the Nigerian economy has continued to perform below expectation despite the huge sums of money being allocated to the sector in each year‟s budget. This situation thus raised question as to the effectiveness of the World Bank assisted Commercial Agricultural Development Project (CADP) which was established in the belief that such project will empower farmers to radically transform agriculture and increase country‟s food production.

More so, the project component is to facilitate agricultural production and commercialization which matches with the characteristics of modernization theory which postulates that agriculture progresses from being oriented towards subsistence farming that occurs on small plots to commercial farming on large scale. The problem is much more confounding when one realizes that the farmers in most parts of Kaduna State still engaged in primitive and traditional methods of agricultural production. For example, in communities like Saminaka, Zaria, Kachia, etc, where farming activities are practiced in large scale, it is observed that primitive forms of agriculture are still being used. This therefore, among other factors raises questions on the credibility of the processes involved in the disbursement of the matching grant to farmers in Kaduna State.

1.3         Research Questions

To further give credence to the problem of the study and provide a guide for empirical finding, the researcher addressed the questions highlighted below:

1. To what extent has the matching grant provided by the Kaduna State Commercial Agriculture Development Project improved farmers‟ standard of living?

1. What technological training have farmers acquired to support the project in increasing agricultural output?

iii.             To what extent have the Kaduna State CADP market opportunities for small and medium scale commercial farmers enhanced their income?

1. What are the challenges confronting CADP operations in Kaduna State?

1.4         Objectives of the Study

The central objective of this research is to assess the impact of Commercial Agriculture Development Project (CADP) on the empowerment of farmers in Kaduna State. However, specific objectives of this research are to:

1. determine the extent to which the matching grant provided by the CADP has affected the living standard of farmers.

1. find out the technological training farmers have acquired to support the project in increasing agricultural output.

iii.             examine the extent to which the Kaduna State CADP market opportunities for small and medium scale commercial farmers has enhanced the income of farmers.

1. find out the challenges confronting CADP operations in Kaduna State.

1.5         Hypotheses

In order to achieve the objectives stated above, the following hypotheses have been formulated:

H₀1:     There is no significant relationship between the matching grant provided by the project (i.e. CADP) and improvement in farmers‟ standard of living.

H₀ 2:    There is no significant relationship between the technological training farmers acquired and increase in agricultural output.

H₀3:     Kaduna State CADP market opportunities for small and medium scale commercial farmers have not enhanced income of farmers.

1.6         Significance of the Study

The significance of this study cannot be undermined. Previous interventions in agricultural development programmes by government and the World Bank (Fadama Projects,) have focused on the provision of farm inputs which included credit facilities to farmers but the Commercial Agriculture Development Project (CADP) pioneers the matching grant approach to assisting farmers. This is probably because previous interventions have not yielded desired results. Also, many scholars including Ogbonna (2014), Dare (2014) among others have conducted researches on agricultural programmes and their impact on the lives of the people achieved through assisting farmers with farm inputs via the provision of credit facilities/loan (reimbursable funds). But this study is unique as it focused on matching grant (non reimbursable funds) advanced to farmers. For instance, Ogbonna (2014) conducted a study on “The effect of Fadama III Project on Rural Farm Women Production in Gombe State” where he emphasized on empowerment of farmers through the provision of credit facilities. Also, in another study on “Impacts of Agricultural Development Programme (ADP): A Study of Isan-Ekiti” by Dare (2014) talks about empowering farmers through accessibility to credit facilities.

More so, the project is timely as the interest in commercial agriculture in Nigeria is growing. The study is necessary now that the present government has shifted its prime focus from oil resources to the agricultural sector for diversification of the economy.

The study will also have an academic value to other researchers as there are scanty or no documented researches on the impact of Commercial Agriculture Development Project (CADP) on the empowerment of commercial farmers in Kaduna state. However, other writers focused on similar programmes that preceded CADP like National Economic and Empowerment and Development Strategy (NEEDS), National Fadama Projects I, II & III, which have to do with agricultural policies and empowerment of farmers.

Kaduna State Commercial Agricultural Development Project will provide an interesting prism through which to examine the dynamics and efficacy of public programmes in the State, as it attracts the interest of a wide variety of stakeholders in the agriculture sector. This study would also be of great value to the Kaduna State Government as findings and recommendations from the study will go a long way in correcting the ills in implementation of Kaduna State CADP. Also, lessons learnt can be useful in subsequent programmes.

1.7         Scope and Limitations of the Study

The scope of this study revolved around the operations of Kaduna State Commercial Agriculture Development Project vis-à-vis the empowerment of commercial maize farmers in the Kaduna State. This study delimits its scope to three (3) LGAs, viz: Giwa, Lere, and Kubau Local Government Areas out of the twenty three (23) Local Government Areas of the State. Justification for the choice of these Local Government Areas is that they had the highest numbers of beneficiaries of the CADP grant in the State which is more adequate for this study and also, the project has recorded more successes in these areas. Also, the choice of maize farmers is due to the fact that they contribute more than 87% of all the beneficiaries (i.e. 1,637/2,871 x 100). Apart from that, maize is observed to be the important staple food crop that is produced and consumed in most parts of Kaduna State. Though the project started in January, 2009, this study spans from 2010 – 2015. The justification for the choice of this period is that, funds for the project were not released until October, 2009. Hence, most of the interventions to the various local governments in the state were carried out within this period.

The scope of the CADP covered areas to do with: promoting the commercialization of agriculture; sustainability of that promotion exercise/component; enhancing farm output/value addition; income of farmers; and marketing of the output, processing, technology, market information, good pricing system, rural roads, local markets, storage facilities, etc.

The limitations of this research were in the areas of time and financial constraint, and also, the inaccessibility to some vital and essential documents (e.g. those specifying how the grants were disbursed) from the CADP office and relevant stakeholders/farmers/beneficiaries as they were skeptical about information to be released to outsiders. More so, the researcher was not unaware of the fact that not all farmers to be studied were knowledgeable in spoken English and as such posed a temporary challenge. However, the researcher employed the help of research assistants who are knowledgeable in the local language (i.e. Hausa) in order to easily ascertain their views on the study.

Get Full Project