Vol. 5(10), pp. 382-389, October, 2013
DOI 10.5897/JDAE12.065
ISSN 2006-9774 ©2013 Academic Journals
http://www.academicjournals.org/JDAE
Journal of Development and Agricultural
Economics
Full Length Research Paper
Effects of property rights on agricultural production:
The Nigerian experience
A. A. Akinola* and R. Adeyemo
Department of Agricultural Economics, Obafemi Awolowo University, Ile- Ife, Osun State, Nigeria.
30 Accepted July, 2013
The study was conducted to examine the effects of property rights and other factors on the outputs of
maize, yam and cassava in three zones of Osun State in Nigeria. This study employed a multi-stage
sampling technique to select 105 farmers involving growers of maize, yam and cassava in the study
area. Data were analyzed with the aid of descriptive statistics, budgetary techniques and a multiple
linear regression model. The results of budgetary analysis showed that variable cost was highest in
yam production. The average revenues per hectare for maize, yam and cassava were (N is Nigerian
currency equivalent to about $0.0067) N104, 487.50, N583, 846.20 and N438, 208.50, respectively.
However, the average net incomes were N19, 908.40, N432, 079.00 and N96, 543.90 for maize, yam and
cassava, respectively. Based on the rates of returns, N1 invested in each of maize, yam and cassava
production yielded N1.2, N3.4 and N3.1, respectively implying that yam was the most profitable crop in
the study area. The result of the multiple regression model revealed that farm size significantly affect
the outputs of the three crops. Land rights type (having either use right/use and transfer right) and
security of land defined by duration of land use affected maize output while duration and ownership
type affected yam output, whereas, duration only affect cassava output. There is therefore the need to
review the land distribution and administration policies based on the identified significant factors
affecting each crops.
Key words: Nigeria, Osun State, crops, maize, yam, cassava, land rights.
INTRODUCTION
Land is probably the most important factor of production.
The unique feature of land is its fixed nature and this has
generated a lot of policies administration in its use rights
and transfer. The rights to land are an international issue
with dynamisms depending on individual country’s tenure
arrangement. Property rights will determine land
ownership related factors affecting the application of
technologies for agricultural and natural resource
management. Secured property rights give sufficient
incentives to the farmers to increase their efficiencies in
terms of productivity and ensure environmental
sustainability. It is natural that without secured property
rights, farmers do not feel emotional attachment to the
land they cultivate, do not invest in land development and
will not use inputs efficiently (Tenaw et al., 2009). There
is broad agreement in the literature that secure individual
land rights will increase incentives to undertake
productivity enhancing land related investments. More
secure property rights could affect productivity by
improving household's security of tenure and thus their
ability and readiness to make investments; providing
better access to credit; and reducing the transaction
*Corresponding author. E-mail: aakinola2000@yahoo.com.