THE IMPACT OF FARM ACCOUNTING PRACTICES ON RURAL WEALTH GENERATION IN AKWA IBOM STATE

The paper examines the analysis of farm accounting practices and wealth creation of rural farmers in Akwa Ibom State. A multi-stage sampling method was applied and 381 respondents were used for the study. Rural farmers were drawn from six Akwa Ibom State Agricultural Development Programme field Structure Zones. The objectives of the study included to: determine the various types of farm account practiced by rural farmers, examine wealth creation level of rural farmers, and establish the relationship between farm accounting practices and wealth creation amongst rural farmers in Akwa Ibom State. The study reveals that rural farmers mostly kept records of debtors and creditors while majority rarely kept record as they considered it to be time consuming. The result obtained from wealth creation showed that majority (58.27%) of the farmers experienced an increase in income. The result of the multinomial regression showed that farmers accounting practices on preparation of balance sheet shows that there is a significant relationship in increase in income (P < 0.05) and increase in physical assets of rural farmers (P < 0.05). More so, farm accounting practices on debtors’ record and creditors’ record were significantly related to increase in income (P < 0.01) and physical asset (P < 0.01) of the farmers. Farmers’ accounting practices on preparation of cash flow statement, Cash receipt book, sales and purchases day book was only significant on increase in income (P < 0.05). The farm accounting practices on profit and loss statement affected income (P < 0.01) and investment in other businesses and services (P < 0.05). Farmer’s practices on records management showed a significant relationship in all the response variables as follows: increase in income (P < 0.01), increase in physical asset (P<0.05), ability to ‘meet family and other responsibilities (P < 0.05), investment in other business and services’ (P < 0.05) and improvement in knowledge and skill (P <0.05). The study therefore recommended that an enabling environment where farm accounting training with qualified extension personnel should be provided by government also formation of cooperatives which will help pull their resources to farm at large scale to ease the burden of preparing accounts for scattered farm plots and enhance their wealth creation capacities.