MJAVL
Manas Journal of Agriculture Veterinary and Life Sciences
ISSN/e-ISSN 1694-7932
Volume 14 (Issue 1) (2024) Pages 54-63
MJAVL Volume 14 (Issue 1) © 2024 https://dergipark.org.tr/en/pub/mjavl
Manas Journal of Agriculture, Veterinary and Life Science is licensed under Attribution-NonCommercial 4.0 International
Research Article
Economic Impact Analysis of Value Chain Development Programme (VCDP) on Net
Farm Income of Rice Farmers in Niger State, Nigeria
Olugbenga Omotayo ALABI *
1
, Godfrey Ajayi SUNDAY
2
, Elizabeth Samuel EBUKIBA
3
,
Jeremiah Samuel ALUWONG
4
, Paul Akinwumi ATTEH
5
1,3
Department of Agricultural-Economics, Faculty of Agriculture, University of Abuja, PMB 117
Gwagwalada-Abuja, Federal Capital Territory, NIGERIA.
2
Plot 1027, Abdul One Mohammed Close, Off Abdulsalam Abubakar Way, Gudu District, Abuja,
NIGERIA.
4
Department of Agricultural-Extension and Management, School of Agricultural Technology,Nuhu Bamali
Polytechnic, Zaria, Samaru Kataf Campus, Kaduna State, NIGERIA.
5
Department of Agricultural Economics and Extension, Faculty of Agriculture, Federal University of Lafia,
PMB 146 Lafia, Nasarawa State, NIGERIA.
*Corresponding author e-mail: omotayoalabi@yahoo.com
ABSTRACT
ARTICLE
INFO
This study evaluated economic impact analysis of VCDP on net farm income (NFI) of rice farmers
in Niger State, Nigeria. Primary data were used. A multi-stage sampling technique was used to select
a total sample size of 292 rice farmers which comprised of 155 value chain development program
beneficiaries and 137 non- beneficiaries. Data were analyzed using descriptive statistics, gross
margin analysis, multiple regression analysis, difference-in-difference method (DD), propensity
score matching (PSM), principal component analysis, F-Chow test, and t-test. The gross margin
ratio for VCDP beneficiaries and non-beneficiaries was 88% and 71%. Rice production was
profitable. The result of the difference-in-difference regression analysis showed that treatment (P<
0.10), period (P< 0.01), interaction (P< 0.10), level of educational (P< 0.10), and farm experience
(P< 0.10), were statistically significant variables influencing the net farm income of rice farmers in
the study area. The results of PSM show that the coefficient of Average Treatment Effect for all
matching algorithms for net farm income of rice farmers such as nearest neighbor, radius, kernel,
and stratification were significant at (P< 0.01). The F-Chow test conducted for difference between
NFI of participant and non-participant of VCDP was statistical significant. This shows that VCDP
impacted positively on NFI of rice farmers. The study recommends that low-interest loans should
be made available to rice farmers to increase income.
Keywords: Economic Impact, Value Chain Development Programme(VCDP), Rice Farmers,
Nigeria
Cite this article as: Alabi, O. O., Sunday, G. A., Ebukiba, E. S., Aluwong, J. S., & Atteh, P. A.
(2024). Economic Impact Analysis of Value Chain Development Programme (VCDP) on Net Farm
Income of Rice Farmers in Niger State, Nigeria. Manas Journal of Agriculture Veterinary and Life
Sciences, 14(1), 54-63. https://doi.org/10.53518/mjavl.1349336
Received:
24.08.2023
Accepted:
26.12.2023