DETERMINANTS OF POVERTY STATUS OF RURAL FARMING HOUSEHOLDS IN OSUN STATE, NIGERIA

Abstract

This study examined the determinants of poverty status of rural farming households in Osun State, South western, Nigeria. A total of one hundred and twenty representative farming households comprising of the beneficiaries and non-beneficiaries of the Farmers Empowerment Programme (FEP) in the state were used for the study. Descriptive statistics, the Foster, Greer and Thorbecke class of weighted poverty indices as well as the Tobit regression model were used to analyse the data generated from the survey. The results of the poverty indices show that 35 per cent of the beneficiaries of the Farmers Empowerment Programme were poor as against 55 per cent for the non-beneficiaries of the programme. The regression results show household size, amount of credit utilised and annual farm income as the factors influencing the poverty status of the rural farming households in the state. The lower incidence of poverty and access to credit for the beneficiaries of FEP in the state are indications of better welfare for this category of farming households. It is therefore suggested that the programme be sustained for poverty reduction among farming households in the state.