ABSTRACT

Investment decision, farm productivity and poverty status of farmers in Nigeria have continued to be of great concern to stakeholders in the agricultural sector. This study examined the effects of risk behaviour on investment, productivity and poverty status of rice entrepreneurs in Ebonyi State, Nigeria. Specifically, the study examined the socioeconomic characteristics of rice entrepreneurs and identified their sources of risk and risk management strategies and classified them according to their risk behaviour. Also, the study estimated the determinants of their risk behaviours and compared investment, productivity and poverty status of the respondents. The study identified the factors that influenced their productivity, investment and poverty status along risk behaviour and examined the problems they faced along risk behaviours. A multistage sampling technique was used to select 240 rice entrepreneurs for the study. Data were collected from the respondents using a validated questionnaire. Data collected were analysed using frequency distribution, percentages, means, total factor productivity (TFP) index, Foster Greer and Thorbeck (FGT) models, Analysis of Variance (ANOVA), ordered probit regression model, Ordinary Least Square regression model, Logit regression model, Tobit regression model and factor analysis. The results showed that the average age, farming experience, household size, farm size, savings, non-farm income, annual farm income and the mean quantity harvested of rice of the respondents were 48.2 years, 21.4 years, 6.68 persons, 2.37 hectares, N94,741.94.00, N127,484.85.00, N447,244.64.00 and 609.99Kg respectively. The rice entrepreneurs were mostly married while 47.9% had up to secondary level of education. Production risks ( = 3.14), marketing risks ( = 2.84), institutional risks ( = 3.33) and personal risks (  = 2.79) were the various sources of risks faced by the rice entrepreneurs. Age, education, farming experience, farm size, cooperative membership, non-farm income, extension visit, amount of credit obtained, and market price of product significantly determined the risk behaviour of the rice entrepreneurs. Risk-taking entrepreneurs significantly invested more in rice production than risk averse and risk neutral entrepreneurs. Age, education, value of farm output, household size, credit obtained, and cooperative membership significantly influenced the poverty status of the rice entrepreneurs based on their risk behaviours. Risk behaviour significantly influenced the productivity, investment and poverty status of rice entrepreneurs. Financial and social factors constrained the rice entrepreneurs in the study area. There is need for extension services, provision of credit, strengthening agricultural insurance industry to be made available by government and non-governmental organizations to provide support to risk averse farmer, guide them to the path of risk taking and address the identified socio-economic characteristics, social, financial and other factors that influenced their investment, productivity and poverty status in the study area.