The Social Sciences
Economic Perspectives of the Diversity of Risks among Crop Farmers in the Northern Guinea Savanna of Nigeria
Authors : L.O. Olarinde, J.O. Akintola and V.M. Manyong
Abstract: In this study, we examine the diversity of risks that affect
farming in the Northern Guinea Savanna of Nigeria. We also investigate the perspectives
of these risks in relation to their economic implications on the farming enterprises.
We also show that through reorganization of these risks, some derived factors
have the ability to present themselves whether as corresponding to existing
categorization of the variables or not and also to enable us know which of the
factors is more important than the other. Gross margin and factor analytical
methods were used in computing the estimated results on a cross sectional sample
of 348 farming households. Results show that farmers who were grouped under
natural risk incurred the least mean production cost of 
11,
115.61 while the highest mean production cost of 15,998.18
was incurred by farmers grouped under production risks. The highest mean revenue
of 18,
998.16 was recorded by farmers under production risk which translated into a
mean gross margin of 65,
999.85. Verifying whether some derived factors would correspond to the existing
categorization of 14 risk types (from five sources) which the farmers faced,
results from the factor analysis and the consequent F-test from ANOVA show no
marked or significant differences among the identified factors and the existing
risk sources. Consequently, the individual effect or importance of the original
14 risk types that the sampled farmers considered important can be dully represented
and effectively regrouped into five sources (factors) as natural, technical,
social, ecosocial and biochemical.
How to cite this article:
L.O. Olarinde, J.O. Akintola and V.M. Manyong, 2011. Economic Perspectives of the Diversity of Risks among Crop Farmers in the Northern Guinea Savanna of Nigeria. The Social Sciences, 6: 262-268.