ABSTRACT

 It has long been understood that with increasing economic growth, small farm production systems could not remain static and would need to gear themselves to some degree of commercialization for their survival. Increased commercialization shifts farm households away from traditional self sufficiency goals and toward profit- and income-oriented decision making. As commercialization proceeds, exits from small-scale agriculture are bound to occur. The question now is, do exits from subsistence agriculture guarantee improved welfare? Against this backdrop, this study was designed to examine the effect of commercialization on the welfare of arabic crop farm households in Abia State, Nigeria. Primary data was collected from simple random sampling of 120 arabIc crop farmers. The socioeconomic characteristics of the farmers were examined; the commercialization index (gross value of crops sold I gross value of CTOS produced) of the 1 20 respondents were determined and the mean value was used as a threshold to differentiate the respondents into commercialized and non-commercialized farm households; the determinants of commercialization were estimated among the farm households; effect of commercialization on the welfare of the farm households and the problems militating against commercialization were assessed. Data analysis consisted of the use of such statistical and econometric tools like percentages, frequencies, multiple regression analysis by the ordinary least square and chow's test. The statistically significant determinants of commercialization were labour, age, capital input and non-Ihrni income. The results for the welfare function depicts that there were significant differences in household total income, household size, age, amount of household landholdings and employment between the commercialized and non-commercialized arabIc crops farm households. For the commercialized farm households, the result shows that gender, total income, household size, age, employment, education were the significant factors influencing their welfare while gender, household size , amount of household landholdings, education were the significant factors influencing the welfare of the non-commercialization households. The Chow's test showed thai. commercialized arable crop farm households have higher welfare status than the noncommercialized households. The farmers are constrained by many problems, including those of ioor access to modern and improved inputs, poor infrastructure, inadequate access to credit, unavailability and high cost of farm inputs, land climate change etc. it was reconmiended that adequate portions of land for agricultural pirses should be mapped out and made available to farmers at affordable rate and condition such that will encourage the farmers to commercialize. Making land available to small-scale farmers will increaseoverall production, as well as improve the welfare of arabl crop farm households and landless peasantry since the bulk of agricultural food production is dominated by the small-holder farmer in Abia 'State, Nigeria. This is very important as an increase in the welfare of the farmers will lead to food security, a condition in which Nigeria can adequately feed herself.