Evaluation Of Farming Systems And Informal Insurance Measures For Optimum Income Of Rural Farmers In The Rain Forest Zone Of Nigeria

  • AI Achike
  • UJ Orekye
  • M Mkpado


Maintaining an increasing flow of income to rural farmers is a challenge to success of poverty alleviation programmes in developing economies, due to risks and uncertainties that characterize agricultural activities. The study thus, evaluated farming systems and other informal insurance measures used by farmers for optimum farm income in rain forest zone of Nigeria. Fifty farmers were randomly selected from Anambra East Local Government Area of Anambra State, Nigeria. Data collected through structured questionnaires and interview schedules were analysed using net farm income analysis, Pearson correlation, and two way ANOVA techniques. Results showed a positive correlation between number of sources of risks and uncertainties perceived by farmers and strategies employed to prevent their effects. The two way ANOVA showed that farmers who cultivated plantation crops, food crops, reared poultry and small ruminants have more income than those who do not. It also showed that adoption of risk management techniques, marketing strategies, souring of microcredit and improving information sources simultaneously, ensured higher income. Recommendations include encouraging farmers to adopt the most profitable farming systems and informal insurance measures as well as provision of more micro-finance facilities to rural people.

Keywords: Agriculture; Risks and Uncertainties; Informal Insurance; Income. Nigeria

Journal of Agriculture and Food Sciences Vol. 5 (1) 2007: pp. 53-63

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eISSN: 1597-1074