ABSTRACT

The study analyzed the effect ofthe Second National Fadama Programme or Fadama II on the welfare and income offarm households in Imo State, Nigeria. Cross sectional data used in the study was obtained through the administration ofstructure questionnaires on sampled respondents. Comparative analysis ofthe income of beneficiaries and non-beneficiaries of the project using the student’s z-test showed the farm income of beneficiaries of the programne was significantly different from and higher that of non beneficiaries (zoi = 3.774 at 1%). Household monthly per capita expenditure (PCHE) (per adult equivalent) was used as a proxy for living standard. Comparative analysis of the standard of living of beneficiaries and non beneficiaries of the project using the student’s z-test showed significant difference in the standard of living of the two groups of respondents with tine beneficiaries enjoying higher standard of living than the non beneficiaries, (zcai = 9.201 at 1 %). The determinants of household living standard for the beneficiaries ofthe programme included: household size, age of household, value of household assets, sex of household head and education. For the non beneficiaries, the determinants of household standard of living were: household size, age of household, value of assets, sex of household head and education. Chow’s test was used to determine the effect of SNFDP on household living standard. The tests for difference in intercept reveled the heterogeneity ofthe intercepts of the two households types and confirmed significant difference in their standard of living and positive effect ofthe project on beneficiaries living standard. The extent of household commercialization was captured using the household commercialization index (HCI). The determinants of household commercialization for the beneficiaries were: labour cost, other inputs cost, access to credit, nonfarm income and quantity consumed at home. The determinants of living standard for non beneficiaries of the Second National Fadama Programme were: farm size, access to credit, household size, nonfarm income, quantity consumed at home and years offarming experience. The analysis ofthe effect of SNFDP on household commercialization using the Chow’s test showed inequality in the coefficients of the beneficiaries and non beneficiaries, as well as heterogeneity of intercepts; confirming significant difference in the extent of commercialization of the two groups and positive effect of the SNFDP on household commercialization. The study recommended the extension of the project to more communities and Local Governments Areas, as well as the implementation of policies and measures to make more land available for Fadama farming. The introduction of appropriate technologies to ensure maximum output from limited Fadama land and the imposition ofsubsidies on farm inputs were also advocated