Determinants of Farmers’ Choice among Alternative Rice Output Markets in Kano State, Nigeria

Abstract

The aim was to analyze the output market outlets accessible to rice farmers and determinants of farmers’ choice among alternative rice production in Kano State, Nigeria. Primary data were collected from 164 rice farmers with the aid of structured questionnaire. This study was conducted in Kura, Garun Malam and Bunkure Local Government Areas of Kano State during 2015 cropping season. A multistage sampling techniques were used for data collection through the use of structured questionnaire. The ordered probit  model was used to estimate the parameters of the determinants of farmers’ choices among alternative rice output market outlets by rice farmers in Kano state. The generalized likelihood ratio statistics was -113.401.  This ratio exceeds the critical chi-square values at p<0.01 level of significance. The log likelihood ratio value represents the value that maximizes the joint densities in the estimated model. This shows that at least one of the predictors' regression coefficient is not equal to zero in the model. The Prob > chi2 was (50.03) and statistically significant at p<0.01 level of probability. The probability of obtaining this chi-square statistic shows the effect of the predictor variables on specified alpha level. This implies that at least one of the regression coefficients in the model is not equal to zero. farmers’ choices among alternative rice output market outlets was significantly determined by educational status of the farmers, access to credit, cooperative membership, distance to market, quantity of output produced by the farmers and  market price of rice (P<0.10). Based on the findings of this study, it could be concluded that the most commonly used output markets by rice farmers was rural assembler (82.3%). Despite increasingly competitive markets, pricing issues for rice remains a concern for farmers.