Do Farmer-Based Organizations Shape Welfare? Evidence from Rice-Farming Households in Niger and Nasarawa States, Nigeria

Over the years, farmer-based organizations have been recognized as a key approach for small-scale farmers to enhance their income and address challenges in agricultural production and marketing. This paper presents a framework for analyzing the effect of membership of farmer-based organizations on the welfare of rice-farming households. The research utilized a multistage sampling technique and a total of 300 rice-farming households were selected. The analytical techniques involved descriptive and inferential statistics, logit regression, and quantile regression. The findings of the logit analysis indicated that education level, farming experience of household head, non-farm income and access to credit were the factors influencing membership in farmer-based organizations. Results of the quantile regression analysis showed that membership of farmer-based organizations had a negative effect on the welfare of rice-farming households and was significant at (p< 0.1). Household size and farm size had an inverse relationship with the welfare of rice-farming households and were significant at (p<0.001) across all quantiles. Non-farm income and farming experience all had a positive influence on the welfare of rice-farming households. The study, therefore, recommends that farmers should be encouraged to join and participate in farmer-based organizations. Efforts should also be made to facilitate the formation and sustainability of these organizations.