African Development Geography (Geography/Development/Social) | 06 December 2011
Cost-Effectiveness Evaluation of Smallholder Farm Systems in Nigeria Using Panel Data Analysis
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Abstract
Smallholder farms in Nigeria face significant challenges in cost-effectiveness due to resource constraints and market volatility. A mixed-method approach combining econometric modelling with qualitative field observations was employed. Panel data from 50 randomly selected farms over three years were analysed to estimate cost-effectiveness ratios and determine the impact of different inputs such as fertilizer and irrigation technology. The panel regression analysis revealed that a balanced use of fertilizer (150 kg per hectare) and improved irrigation systems resulted in an average increase of 20% in crop yield compared to traditional farming methods. This study provides robust evidence for the cost-effectiveness of targeted agricultural interventions, particularly when combined with appropriate technology application. Policy makers should prioritise funding for research and extension services that promote the adoption of cost-effective farm management practices among smallholder farmers in Nigeria. Smallholder farms, Cost-effectiveness, Panel data analysis, Agricultural productivity, Nigeria The empirical specification follows $Y=\beta_0+\beta^\top X+\varepsilon$, and inference is reported with uncertainty-aware statistical criteria.