Impact of fertilizer subsidy on farmers’ productivity

Case study of rural farmers in lapai communities of Niger State, Nigeria

Abstract

This study investigates the extent to which access to fertilizer subsidy enhance farmers’ productivity in Lapai rural communities. A cross-sectional data were obtained through a structured questionnaire from 142 farmers and multiple regression analysis was applied on fertilizer subsidy, micro credit and farmers’ productivity. Finding shows that fertilizer subsidy and microcredit contributes to farmers’ productivity. Fertilizer subsidy contribution is more in rice than the maize productivity, as the rate of returns in rice is almost twice to that of maize production. The study therefore recommends further subsidy in the prices of fertilizers in order to ensure its affordability by all farmers, as well as, access to micro loans should be improved with removal of bureaucratic nature attached to obtaining loans in order to attract farmers to applying for loans.