Economic Impact Analysis of Value Chain Development Programme (VCDP) on Net Farm Income of Rice Farmers in Niger State, Nigeria

Abstract

This study evaluated economic impact analysis of VCDP on net farm income (NFI) of rice farmers in Niger State, Nigeria. Primary data were used. A multi-stage sampling technique was used to select a total sample size of 292 rice farmers which comprised of 155 value chain development program beneficiaries and 137 non- beneficiaries. Data were analyzed using descriptive statistics, gross margin analysis, multiple regression analysis, difference-in-difference method (DD), propensity score matching (PSM), principal component analysis, F-Chow test, and t-test. The gross margin ratio for VCDP beneficiaries and non-beneficiaries was 88% and 71%. Rice production was profitable. The result of the difference-in-difference regression analysis showed that treatment (P< 0.10), period (P< 0.01), interaction (P< 0.10), level of educational (P< 0.10), and farm experience (P< 0.10), were statistically significant variables influencing the net farm income of rice farmers in the study area. The results of PSM show that the coefficient of Average Treatment Effect for all matching algorithms for net farm income of rice farmers such as nearest neighbor, radius, kernel, and stratification were significant at (P< 0.01). The F-Chow test conducted for difference between NFI of participant and non-participant of VCDP was statistical significant. This shows that VCDP impacted positively on NFI of rice farmers. The study recommends that low-interest loans should be made available to rice farmers to increase income.