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Economic Evaluation of Agroforestry Practices in Ogun State, Nigeria

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Economic Evaluation of Agroforestry Practices in Ogun State, Nigeria 39 Advances in Forestry Science Original Article Economic evaluation of agroforestry practices in Ogun State, Nigeria Idayat Ayoka Kareem 1* Michael Femi Adekunle 1 Dorcas Tokunbo Adegbite 2 Jubril Akanni Soaga 1 Victoria Olufunmilayo Kolade 1 1 Department of Forestry and Wildlife Management, Federal University of Agriculture, Abeokuta, Ogun State, Nigeria. 2 Department of Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta ͐ , Ogun State, Nigeria. * Author for correspondence: [email protected] Received: 09 March 2016 / Accepted: 04 June 2016 / Published: 30 September 2016 Abstract a wide gap between demand for and supply of food (CBN Evaluation of the economic aspects of agroforestry provide 2005). basis for estimating financial needs and feasibility, As a result, productivity in agriculture is far from highlights trade-offs between multiple benefits and monitors satisfactory. Within the last two decades, yields from economic efficiency in a given agroforestry system. This various crops have not been commensurate with the study evaluated the economic aspect of selected agroforestry expected level, using the same amount of input. Literature practices in Ogun State, Nigeria. Multistage sampling abound, showing substantial decline in yield of crops over technique was used to select 240 respondents involved in the years (Phillip 2005). This was also reflected through the agroforestry practices from four agricultural zones in Ogun decline in the contribution of agriculture to the GDP which State (Abeokuta, Ilaro, Ikenne and Ijebu-Ode). Data were in the early years of independence was about 60 and 80% of collected with the aid of structured and pre-tested export earnings then, were accruable to agriculture but in questionnaire administered interpersonally to the today’s agriculture, the Nigerian agricultural sector accounts respondents. Data were analyzed using descriptive statistics for a third of the GDP and < 1% of export earnings (Sanni and cost and returns analysis. The mean age of the 2005). agroforestry farmers was 53 years; and the majority (76.7%) Evaluation of the economic aspects of agroforestry was male; married (89.6%), the average household size of provides a basis for estimating financial needs and six. Most of the respondents (64.5%) funded their farms feasibility, highlights trade-offs between multiple benefits from personal savings. The mean farming experience was 19 and monitors economic efficiency. Economic budgeting is a years and the mean farm size was 2.4 ha; while 68.8% very flexible process but effective application of budgets acquired their lands through inheritance. Seven agroforestry requires an understanding of the commodity, practice or practices were identified in the study area, out of which system to which it is being applied. Agroforestry poses some ‘scattered trees on farmland’ was predominantly practiced unique economic budgeting problems because it involves (77.5%) when prioritized according to the level of multiple enterprises with varying production cycles, such as participation. The cost and returns analysis revealed that in trees, agronomic crops, forages and/or livestock (Godsey all zones (pooled) the total revenue (TR) generated from 2008). agroforestry products was N411,135.40 ($2,055.70) and the First, unlike most agricultural commodities, agroforestry net profit was N190,229.90 ($951.20). In each zone TR and has a “planning horizon” of greater than one season due to net profits were Abeokuta [N467,879.17 ($2,339.40) and the tree component. A “planning horizon” is simply a time N296,369.62 ($1,481.80)]; Ijebu-ode (N284,049.17 period in which all costs and revenues for a given practice ($1,420.30) and N134,426.57 ($672.10); Ilaro [N566,566.67 are realized. For soybeans, a planning horizon may be six ($2,832.80) and N244,207.39 ($1,221.00)] and Ikenne months to a year. For agroforestry, a simple planning [N326,046.67 ($1,630.00) and N124,266.98 ($621.00)] per horizon may be as long as 6-8 years when the wood values hectare respectively. Conclusively, agroforestry practices of trees are taken into consideration (Godsey 2008). were found to be profitable and capable of providing rural Secondly, because of the long planning horizon of employment and contribute to food security in the study agroforestry practices, many of the revenues and area. costs do not occur at regular or predictable intervals Key words : Costs and returns; Trade-offs; Profitability; throughout the entire planning horizon, but are irregular in Prioritization. occurrence. Finally, because agroforestry practices typically Introduction incorporate a fixed tree component with a crop or livestock In spite of the dominant roles of the petroleum sector as component, the crop or livestock component may change the major foreign exchange earner, agriculture remains the over time. For example, an alley cropping practice in US mainstay of the Nigerian economy. Apart from the sector’s may start out as soybeans (Glycine max ) grown between contribution to the Gross Domestic Product (GDP), it is also rows of eastern black walnut (Juglans nigra ) trees, but by the largest non-oil export earner, a key contributor to wealth the time the trees are producing nuts, hay may be the crop creation and poverty reduction as well as the largest grown between the rows of trees because more of a mat is employer of labour in the country (Ladipo 2010). According required to harvest the nuts (Godsey 2008). to Azeez (2002), a large percentage of Nigeria’s populations In spite of the immense contributions of agroforestry derive their income from agriculture and agriculture-related practices to households economy in terms of food and fibre activities in which over 75% of rural inhabitants are farmers. production, little information is available about its economic However, over the years, the growth rate in agricultural profitability. Hence the study intends to bridge this gap by production has stagnated and has failed to keep pace with carrying out a budgetary analysis to provide information on the needs of the rapidly growing population, resulting in a the profitability of the agroforestry practices in Ogun State, progressive rise in import bills for food. This has resulted in Nigeria. ISSN: 2357-8181 Adv. For. Sci., Cuiabá, v.3, n.3, p.39-44, 2016 40 Kareem et al. Material and methods the variable cost items include: transportation, site preparation, seedling and planting costs. Study area The study area is Ogun State, otherwise known as the Table 1. Sampling plan of Ogun State, Nigeria, 2013. Sample Gateway State, that was created out of the former Western Zones Blocks Cells State of Nigeria on February 3, 1976 and the State capital is sizes Imeko (10), Ayetoro Abeokuta. Ogun State is situated within the tropics, with a Imeko 30 total land area of 16,409.26 km -2, lies within latitude Ilaro (10), Ilaro (10) (60) Ado-odo (10), Atan-ota o o o o Ado-odo 30 6 20`and 7 58` in the tropics and longitude 2 40`and 4 35` (10), Igbesa (10) East of the Greenwich Meridian, and has an estimated Isoyin (10), Atan (10), Isoyin 30 population of 3,728,098 people (NBS 2009) of which 67% Ijebu-ode Ijebu-ode (10) were farmers (OGADEP 1998). Ogun State shares (60) Ago-Iwoye (10), Oru Ago-Iwoye 30 boundaries with Lagos State in the south, Republic of Benin (10), Odosenlu (10) in the west, Ondo State in the East and Oyo State in the Olorunda (10), Papa Olorunda 30 north. Ogun State is politically stratified into 20 Local Abeokuta (10), Imala (10) (60) Odeda (10), Olodo (10), Government Areas (LGAs). Its natural resources include Ilugun 30 extensive fertile soil suitable for agriculture, rivers, rocks, Osiele (10) Isara (10), Imagbon (10), lagoons, mineral deposits and an ocean front (Kareem Isara 30 Orile-oko (10) 2003). The State has vegetation ranging from derived Ikenne (60) Obafemi (10), Kajola Obafemi 30 savanna to rain forest. The climate follows the usual tropical (10), Ajebo (10) pattern, with the rainy season starting around March and ending around November each year, followed by a dry Multistage: season which makes it easy for the production of major Stages → Division of the zones into four to produce primary agronomic crops in the State. Such major crops include selection units. cassava (Manihot esculentum ), maize (Zea mays ), rice Stage 1: Produce primary selection units → zones (4) – (Oryza sativa ), kolanut (Cola acuminata ), melon (Citnullus Abeokuta, Ilaro, Ikenne and Ijebu-ode. lanatus ), fruit and leafy vegetables. The State predominated Stage 2: Zones → Blocks; 2 blocks were purposively by Yorubas with dialects which bring about the selected from each zone. distinguishable features among the inhabitants, which Stage 3: Blocks → Cells; 3 cells were purposively selected include the Egbas, Egbados (Yewa), Remos, Ijebus as well from each block. as Eguns. There are also some natural endowments such as Stage 4: Simple random selection of 10 respondents from Olumo rock, Yemoji waterfalls etc. each cell which gave a total of 240 respondents. Analytical techniques Results and discussion This study was based on both primary and secondary data. The primary data were obtained through the Socio-economic characteristics of respondents administration of a structured questionnaire on the The socio-economic characteristics of the respondents respondents. Information collected was supplemented with were expected to impact on the productivity levels of the secondary data which was obtained from journals, agroforestry farmers. monographs, and data from Central Bank of Nigeria (CBN A proportion of the agroforestry farmers (23.8%) were 2005) and Food and Agricultural Organization data bank in the age group of 41-50 years with a mean age of 53 years (FAOSTAT). Multistage sampling technique with a four (Table 2). This implies that most of the farmers were in the stage design was used to collect data for this study.
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