Empirical analysis of income inequalities and welfare among farmers in South Eastern Nigeria

Abstract

The study analysed income inequalities and welfare of farmers in South Eastern Nigeria, using Abia State where the occupation of majority is farming. Specifically, the study accessed the income inequalities of the farmers; determine the factors that influence welfare among the farmers in the study area; and made recommendations based on the findings. Multi-stage sampling technique was adopted for this study. First, two Local Government Areas were selected from each of the three agricultural zones. From these Local Government Areas, three communities were chosen. Finally, a random selection of twenty farmers was selected each from the three communities, bringing total of one hundred and eighty (180) farmers/respondents. Primary source of data was used for the study. This was actualized with questionnaire administered to the already selected respondents. The study employed Gini-coefficient and multiple regression in the analysis of the data collected. The Gini coefficient value was 0.67, showing that there was high income inequality in the study area. The regression result that determined the factors influencing farmer’s welfare showed that marital status, farm size, access to credit, value of access, cost of labour, farming experience and household size were major determinants of farmers’ welfare. The study recommended that government policies targeted at farmers should be strengthened, cost saving technologies should be introduced and farmer educated to adopt such measures, amongst others.