The Effect of Household Income on Agricultural Productivity in Nigeria: An Econometric Analysis

Agricultural development is one of the most powerful tools to end extreme poverty, boost shared prosperity and feed a projected 9.7 billion people by 2050 . Growth in the agriculture sector is two to four times more effective in raising incomes among the poorest compared to other sectors. Agriculture i s also crucial to economic growth. It is in consideration of this fact that this study empirically examines the effect Household Income on Agricul tural Productivity in Nigeria. In achieving the objectives of the study, stationarity and long run tests inclu ding Ordinary Least Square Methods were adopted. In testing for the time series properties, the evidence from estimated economic models suggests that all the variables examined are stationary at first difference I(I) using the Augmented Dickey Fuller (ADF) and Phillips - Perron. Besides, Johansen Co - integration test reveals that the variables are co integrated which confirms the existence of long - run equilibrium relationship between the variables. Thus, this suggests that all the variables tend to move togeth er in the long run. Empirical evidence reveals that a naira increase in per capita gross domestic product of individual households in Nigeria translates to about 0.92 million naira increase in agricultura l output between 1986 to 2016. Similarly, a naira in crease in government expenditure on agriculture results to 0.75 million naira increases in agricultural output also within the period under reference. It is therefore, recommended that government must provide funds to a cquire sophisticated farm tools (harv esters, herbicides, fertilizer etc), build irrigation, dams, and storage facilities and establishes food processing industries across the thirty - six states of the federation to enable farmers' process and preserve their food stuff. This will bring value ad dition and make our export competitive in the international market. Finally, the peasant farmers who live in the rural areas, and incidentally the major providers of food for the nation should be adequately catered for and motivated by making the rural are as more conducive and habitable through the provision of adequate infrastructural facilities such as good road networks, recreation centres, educational and farm institutes, pipe - borne water and electricity. The provision of these facilities will no doubt impact positively on the rural farmers' output.