ASSESSMENT OF FACTORS AFFECTING INVESTMENT BEHAVIOUR OF RUBBER FARMERS IN EDO STATE, NIGERIA

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Date

2013-03-21

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Enterpreneurship Department, Nasarawa State University, Keffi

Abstract

This paper investigated major factors influencing investment behavior of natural rubber farmers in Edo State, Nigeria. A structured interview schedule was used to obtain data from randomly selected one hundred and sixty farmers. Data collected was analyzed using descriptive statistics and multiple regressions. The results show that about 41% of respondents had rubber farming as their only occupation. Regression analysis show that income derived from farm and off-farm activities, loan obtained for farm activity (at 1% level) and farm size (at 10 % level) constituted significant influence on investments. About 70.6% of the variations in the level of investment were accounted for by the variables included in the model. Pearson correlation analysis showed that the relationship between investment and farm size (0.64), farm income (0.75) and offf arm income (0.60) was strong at 1% level while loan (0.33), age (0.42), farming experience (0.37) and interest rate (0.17) had weak relationship with investment. The study further revealed that there was inadequate investment by the farmers. The paper recommends that the informal saving sector (ESUSU) monthly contribution be examined with a view to seeing how it can be integrated into the formal sector for developmental goals. Rubber farmers in the area are also advised to join or form co-operative societies to enable them have easy access to inputs and loans. Also since increased income should result in proportionately higher volume of savings which probably may translate into increased investments, maintenance of subsidies on agriculture and granting of soft loans to rubber farmers will encourage them to make capital investments.

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Keywords

Investment, Behaviour, Rubber farmers, Farm income

Citation

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https://keffi.nsuk.edu.ng/handle/20.500.14448/2294

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