Agricultural Development And Sustainable Income To Farmers In Osun State Challenges And Prospects

Agricultural Development and Sustainable Income to Farmers in Osun State: Challenges and
Prospects
In-text: (Abefe and Salaudeen, 2019)
Your Bibliography: Abefe, B. and Salaudeen, A. (2019). Agricultural Development and Sustainable
Income to Farmers in Osun State: Challenges and Prospects. In: T. Umar, ed., Multifarious Issues in
Nigeria Today: Multidisciplinary Approaches, 1st ed. Akure: Science and Education Development Inst.,
Nigeria, pp.172-190.

Multifarious Issues in Nigeria Today: Multidisciplinary Approaches
This work is licensed under a Creative Commons Attribution 4.0 Unported License
ISBN: 978-978-54770-2-3. Science and Education Development Inst., Nigeria
172
Chapter Eighteen
Agricultural Development and Sustainable Income to Farmers in Osun State:
Challenges and Prospects
Bola Abefe and A. G Salaudeen
Department of Business Administration and Management, The Federal Polytechnic,
Ede, Osun State, Nigeria.
Abstract
The dwindling oil price and expected population rise is a serious cause of concern
for every Nigerian at home and in the Diaspora. This calls for the need to
diversify the economy and expressly shift focus to once abandoned agriculture
considering Nigeria abundant natural and human resources, and the role of
agro-allied enterprises in economic development. The study sought to examine
the role of small-scale livestock, cocoa and fisheries farmers in a developing
economy. It can be noted that agricultural practices have the potential for the
development of any economy which can manifest in employment generation,
skills acquisition, economic growth, rural development, industrialization and
better utilization of indigenous resources. Therefore, the study addressed the
importance/roles, challenges, and prospects of farmers in the socio-economic
development of the rural community vis-à-vis the Osun State. It has been
discovered through the findings that small-scale farming has contributed to the
growth and development of the economy, while there is no commensurate
attention/contribution by the government. Developing agricultural sector is the
best alternative to the oil economy, and an important strategic move to get the
country out of her current economic predicament. The government should
encourage local farmers and production of goods and services to promote small
industries by buying/using locally made products and or services and allocating
adequate funds for SMEs (more importantly agricultural sector) growth and
development in the Nigerian economy.
Keywords: Agriculture, Rural community, Economic development,
Small-scale.
Introduction
The volatility of global oil price has
plunged Nigeria into recession and this
has been a serious matter of concern to
every individual, business
organizations/corporations and the
government because it dwelled only on

173
its huge crude oil and gas resources as
the major source of revenue. Nigeria is
the largest oil exporting country in Africa
and depends largely on United State of
America (USA) for sales of its
exploration but over the years, USA has
doubled effort on domestic production
pushing oil import low. The economic
woes befalling Nigeria, however, is
getting has her due to the crashing of oil
price in the global market over the years.
In the year 2016, the “fall continued to
the lowest level in more than five years”
(Rotimi, 2016). There is also widespread
disenchantment among the masses and a
feeling of hopelessness in many quarters.
The sole dependence on oil and gas not
only rendered the economy unviable, the
proceeds from there sources are being
mismanaged at the expense of economic
growth and national development. This
has imposed irreparable damage on
various factors depending on the
economy for survival, currently, the
government is incapacitated, business
organizations find it difficult to survive
and those that manage to survive to
retrench workers as a result of
unfavorable economic condition.
Diversification presents the most
competitive and strategic option for
Nigeria in light of her developmental
challenges and given her background.
For a country to attain growth and
development of the economy has to be
diversified, that is there should be a
simultaneous development of various
sectors instead of practicing mono-
economy.
Agriculture was the mainstay of the
Nigeria economy, the sector was the
major employer of labor. The main cash
crops were cocoa, palm oil, rubber,
cotton, and groundnut. In the year 1958,
when oil was discovered in commercial
quantities and as Nigeria began to earn
fast money from oil sale, agriculture was
neglected to the background. The neglect
of agriculture in Nigeria hindered efforts
at different levels to reduce poverty,
unemployment and food shortage. The
danger such “sole dependence portends
might have informed the tremendous
commitments by the government
towards diversifying the economy”
(Bamidele, 2016).
It is on the backdrop of oil and gas
unstable revenue allocation from the
Federal Allocation (FA) that the
government of Osun State decided to
embark on revamping the agricultural
sector as a primary source of materials,
improved food sufficiency, reduce total
reliance on FA, and create employment
for millions of skilled and unskilled
people. Aregbesola (2016) describes the
recession as a beehive of opportunities
available to the State to fully resuscitate
agricultural sector using the abundant
natural resources to accrue wealth,
economic growth than development.
It is recognized that agricultural
commercialization and investment are
the key strategies for promoting
accelerated modernization, sustainable
growth and development and hence
poverty reduction. However, to attract

174
investment into agriculture, it is
imperative that those constraints
inhibiting the performance of the sector
are first identified with a view to
unlocking them and creating a conducive
investment climate in the sector.
This paper examines the challenges and
prospects of farmers to generate
sustainable income in Owode-Ede Local
Council Development Area, Osun State
with a view to providing policy
recommendation to accelerate the
performance of farmers and agro-allied
enterprises.
Statement of the problem
The current state of the economy and
lingering volatility of oil prices which
serve as the bedrock of the national
revenue drag the attention of
government at all levels to source for
alternative means of generating revenue
to rescue the economy from total
collapse. It is on this call that the
diversification of the economy becomes a
reality and leading to various efforts by
individuals, corporate bodies and all
arms of government to redeem the lost
glory of agriculture, as the best
alternative to oil to generate required
funds, in recognition of the sector
potentials towards national
development. The dawn of realization of
the fact that heavy dependence upon
Federal Government Allocations by
states; ministries, departments, and
agencies (MDAs), and paid employment
by individuals, can no longer sustain the
teeming population and its economic
aspirations. Therefore, there is a need to
look towards generating sustainable
income via agricultural practices.
Purpose of the Study
This study aims at highlighting the role
of agriculture in generating sustainable
income for the farmers in particular and
the government in general. It is also to
identify the problems facing agriculture
and agro-businesses in Owode-Ede
LGDA, Osun State.
Research Questions
The following questions guided this
study.
- What are the various contributions of the
agricultural sector to the sustainable
income of the farmers and the Osun
State?
- What are the constraints of the farmers
and Osun State Government to the
growth and development to the
agricultural sector?
Statement of Hypotheses
In order to achieve the objective of this
study the following hypotheses will be
tested: H0-Agricultural development
does not contribute to the sustainable
income of the farmers and the state.
H1-Agricultural development
contributes to the sustainable income of
the farmers and the State.
Scope and limitation of the study
The government of this country has
declared that there is an urgent need to

175
tap and explore the potentials endowed
in agriculture to rescue the crumbling
economy. It becomes imperative to
examine the challenges and prospects of
farmers in generating sustainable income
in a depressed economy. This research
work covers small scale livestock, cocoa,
and fisheries farmers and traders in
Owode-Ede Local Council Development
Area, Osun State.
Conceptual Review
The agriculture sector is one of the
earliest sectors of the economy globally.
It started when a man has to survive
through the gathering of fruits and nuts.
Rimando (2004) defines agriculture as
the “systematic raising of useful plants
and livestock under the management of
man. Moreover, the agricultural sector
plays an important role in providing
large scale employment for people. Large
and moderately large farms employ
workers to undertake the various jobs
relating to the cultivation of crops and
care of farm animals.” Agriculture,
according to Bareja (2014), agriculture is
the “art and science of growing plants
and crops and the raising of animals for
food, other human needs or economic
gains. “This definition describes
agriculture as both an art and a science-
needs skill and founded on scientifically
verified facts-, and thus includes
specialized disciplines; the words
growing and raising are descriptive of
enterprise, activity or practice. It has two
main divisions; plant or crop production
and animal or livestock production; and
its ultimate purpose is for food
production, other human needs such as
clothing, medicines, tools, artistic
display, and dwelling, or for economic
gain or profit. In most countries of the
world agriculture, according to Victor
(2016), “remains the biggest sector
responsible for employing and feeding a
larger percentage of the population. It is
also important from the point of view of
appraising the standard of country
development, based on the competence
of the farmers.”
Traditionally, agricultural practices
include farming in all its branches and
cultivation and tillage of the soil,
dairying, the production, cultivation,
growing, and harvesting of any
agricultural, aquaculture, floricultural or
horticultural commodities; the growing
and harvesting of forest products upon
forest land, breeding and raising of
livestock including horses, the keeping
of horses as a commercial enterprise, the
keeping and raising of poultry swine,
cattle and other domesticated animals,
and any forestry or lumbering
operations. The main purpose of
agriculture is to provide food and raw
materials for human use. Ikponmwosa,
(2016) noted that agriculture currently
contributes between 30 and 40 percent to
the national gross domestic product
(GDP) of Nigeria.
Nchuchuwe and Adejumo (2012) quoted
Macrae et al. (1990) as saying that:
“Sustainable agriculture is both a
philosophy and a system of farming. It is
rooted in a set of values that reflects an

176
awareness of both ecological and social
realities and a commitment to respond
appropriately to that awareness. It
emphasizes design and management
procedures that work with natural
processes to conserve all resources and
minimize waste and environmental
damage while maintaining and
improving farm profitability integrated
into their regions, are better able to
generate robust growth and sustainable
growth than mono-economy as we have
today. ”Based on this wide scope,
agriculture must henceforth be treated as
a business and cease from being only
treated as development program if the
current efforts at diversifying the Nigeria
economy must be gainfully realized.
“The ancient counsel remains, that no
matter how far one has gone on a wrong
path, the right thing to do is to turn back,
if one is to get to the destination; no one
can get out of a pit by continuing to dig
deeper, one must stop digging”
(Ajimobi,2015).
Diversification in the present Nigeria
economy context simply means creating
new avenues for economic growth. It
involves using the right strategy to boost
revenue generated from other sectors of
the economy. That is, facilitating the
growth of other sectors of the economy
and through this, reversing the effects of
the economic crisis and returning the
economy to a growth path. It, however,
will not necessitate neglect of the oil and
gas sector but accommodates
maximizing revenue derivable from the
sector (Okechukwu, 2016).
.
Osun Farm Settlements
The current administration under
Ogbeni Rauf Aregbesola, Governor State
of Osun, had since assumption of office
through the Osun Rural Enterprise and
Agriculture Programme (O-REAP)
embarked on programmes directed at
revitalizing the nine farm settlements
(Ago-Owu, Esa-Oke, Oyere, Igbaye,
Ifon-Orolu, Oluponna, Mokore, Iwo, Ila
Orangun) through the measures that
would bring about improvement to
make them conducive for existing
farmers as well as encourage new ones
especially the youths who are interested
in farming.
Resuscitation of Cocoa Processing
Industry, Ede
The Osun State Government (OSG)
partnered with Shanghai Golden Minkey
Group, China to revive Cocoa Processing
Industry in Ede for the production of
cocoa paste, powder, and cake. The
maximum capacity of this plant before it
was upgraded was 5000 tons but it can
now produce 20,000 tons. This is done to
diversify the utilization of cocoa and also
create close market availability for the
sales of cocoa by farmers in the state. In a
bid to revive the agricultural sector to
stimulate the diversification plan of the
OSG signed a $50million Agriculture
Investment Memorandum of
Understanding (MoU) with International
Institute of Tropical Agriculture (IITA)
for the establishment of demonstration
farm at Ago-Owu Farm Settlement for
best farming practice. “The State

177
currently has nothing less than 66,000
cocoa trees which can fetch us N40
billion every year if fully cultivated”
(Aregbesola, 2016).
In the agreement, the state government
would make available 20,439 hectares of
land at the farm settlement for the
development of agriculture and
production of massive food as an
alternative to the reliance of oil sector.
The demonstration farm is also for the
purpose of conducting research and
training young farmers in the state in
modern, commercial and profitable
farming IITA will also carry out cassava,
plantain, and other crop multiplications.
Other aspects of the MoU covered the
development and infrastructural grade
of breeding, farming, and processing of
beef cattle ranches and the establishment
of agricultural equipment leasing and
hire centers to be managed by a private
firm via public-private partnerships
(PPP) scheme.
Types of Agriculture:-Agriculture is one
of the most widespread activities in the
world, but its character is not uniform
throughout. There are a number of ways
to classify agriculture and some of the
major criteria which can be adopted
include the scale of farming, crop and
livestock combinations, intensity of
farming, means and ways of disposal of
the farm produce and the level of farm
mechanization, etc. Osun State is
“predominantly an agrarian society with
about 70% of the population directly or
indirectly dependent on agriculture and
related occupations. There are many sub-
sectors in agriculture but these have been
condensed and treated under four
subsectors: Crops, Livestock, Fisheries
and Forestry” (Osun State Government,
2005)
Crops Production. The major arable
crops in Osun State include maize,
cassava, rice, and cowpea while major
tree crops are cocoa, oil-palm, citrus, and
cashew. Cultivation of these crops is
rainfed thus subjecting them to the
vagaries of the weather, with the result of
becoming susceptible to moisture stress.
Fisheries: The major fish species in Osun
State waters include Clarias, Tilapia spp.
Heterotis niloticus, Ophio cephalus, carp,
chrysichthys, mormyrm, Hepsetus, etc.
The highly culturable among these are
Clarias, Tilapia spp. and Heterotis. Fish
fingerlings production level at present is
less than 500,000 per annum as against
the current requirement of 10million
fingerlings for about 5,000 fish farms.
The yield from the over 5,000 fish ponds
in the State is around 5,000 metric tons
per annum as against the expected 30,000
metric tons. This a by small low yield is
due to the limited application of
Raw Materials Potential and Possible Cottage Level Industries in Ede North LGA.

178
Culled from ww.osunstate.gov.ng/Seeszontent.htm(2016)
Modern fishing and fish farming
methods. Fish farmers in the state are
forced to rely on poultry feeds, the
nutritional qualities of which are
inadequate for fish growth (OSG, 2005)
stated.
Osun Government Policy Reforms and
Strategies on Cash Crops
Some of the State Government policy
reforms and strategies to banish hunger
in and enhance wealth through a
massive increase in food production and
agriculture are listed below:-
i) Closer collaboration with
Universities and Research
Institutes to facilitate the
introduction of high yielding
varieties of crops to farmers; (ii)
Encourage the production of cash
crops which can enhance farmer’s
income and provide a basis for an
effective agro-industrial society in
Osun State. (iii). Specifically, to
vigorously develop extensive
farming in palm trees to create a
fully integrated oil palm
processing industry. (iv). Targets
and capture a minimum of 10% of
the multi-billion naira per day
food market
of neighboring states. (v). Support
cooperative efforts of farmers.
(vi). Catalyze the development
and promotion of micro, small
and medium enterprises that will
exploit available raw materials.
(vii). Set up price support scheme
for farmers through commodity
exchange board. (viii). Ensure
efficient and effective distribution
of fertilizers and other farm
inputs.
Sustainability is a multidimensional
concept covering environmental, social,
political, economic, cultural and spiritual
(Otitoola, 2009). Olokundun (2014:47)
quoted Harris (2003) as describing
“Sustainable development as
development which meets the needs of
the present without compromising the
ability of future generations to meet their
own needs. ” From agriculture angle,
Barbic (1995) refers to sustainability as
the “successful management of resources
for agriculture to satisfy changing
human needs while maintaining or
enhancing the quality of the
environment and conserving natural
resources.”
Ede
North
LGA
Cashew, pineapple, citrus,
cassava, yam, cocoyam,
maize, beans, soyabeans, oil
palm, pawpaw, bamboo,
livestock, vegetable
Fruit juice, edible oil, P.K Oil, soap making,
broom and other house hold products,
basket, toothpick, cocoyam, flour chips,
livestock, feeds, bean cakes, flour, soyabean
cake, oil, salad, food soup, bone mill

179
National income, according to Ande
(2015), is the “money value of the total
volume of goods and services produced
or the total income earned in a given
country over a period of time, usually a
year. He explained further that personal
income is the amount of money/income
received by individuals/households
over a given period of time, while real
income is money in terms of goods and
services it will buy. Disposable income is
the amount of money that is left to an
individual/household for spending and
saving after the deduction of personal
income taxes. ” Therefore sustainable
income is a financial resource at the
disposal of an individual/state to satisfy
changing needs independently while
living a virtuous life.
Importance of Agricultural Activities
in Economic Development
Importance of agriculture includes some,
though not exhaustive, of the following.
Source of Food Supply: Agriculture is
very important to human beings because
it forms the basis for food security.
Olukunle (2013) opined that
“agricultural products have been
recognized to have domestic food and
industrial value and great export
potential because they can provide food
for the entire population and income to
farmers as well as many economic agents
involved in the marketing of agricultural
products. ” It is not only nature-friendly
but also a very reliable source of
livelihood form a kind and also one of
the honest sources of incomes.
Agriculture helps human beings grow
the most ideal food crops and raise the
right animals with accordance to
environmental factors. Agriculture plays
a prominent role in the socio-economic
growth and development to rural areas
as the largest job creation for mankind
guarantying food security. Majority of
the populations in rural settings engage
in agricultural dominated activities.
Other areas of agricultural importance
according to European Commission-EU-
(2000), Pragyandeepa (2015) and
Studyread.com (2016) areas follow.
Contribution to National Income: The
lessons drawn from the economic history
of many advanced countries tell us that
agricultural prosperity contributed
considerably in fostering economic
advancement. In India, still, 28% of
national income comes from this sector.
Farming is the fabric of rural society and,
in many countries of the world; it is the
main economic activity. The main
potential contributions of farming to
rural development are in terms of
supporting employment, ancillary
businesses, and environmental services.
In peripheral regions, farming may be
necessary to support the economic and
social infrastructure as a “major source of
non-oil foreign exchange earnings for the
nation” (Olukunle, 2013). Aregbesola
(2016) reiterated his plan: “In our bid to
achieve bountiful economy, there is the
need for us to go back to farm as the only
alternative to avert the effects of the
dwindling revenues in the State and

180
Nigeria at large because farming is the
only venture in the country which is
permitted by all.”
Since agriculture employs many people
it contributes to economic development.
Return to the agricultural economy will
reduce food imports, increase food
production, and the timely turn around
investment within the country. As a
result, the national income level,
economic development as well as
people’s standard of living rely on the
agricultural growth rate to improve. The
fast rate of development in agriculture
sector offers progressive outlook as well
as increased motivation for
development. Agriculture is the main
source of national income for most
developing countries. It is the premier
source of our national income. The large
population of over 170 million people in
Nigeria provides a steady business for
agro-allied activities to not only ensure
food security but also human and
business survival.
Agriculture is the basic source of the
food supply of all the countries of the
world; whether underdeveloped,
developing or even developed. Due to
the heavy pressure of population in
underdeveloped and developing
countries and its rapid increase, the
demand for food is increasing at a fast
rate. If agriculture fails to meet the rising
demand for food products, it is found to
affect adversely the growth rate of the
economy. Raising the supply of food by
the agricultural sector has, therefore,
great importance for the economic
growth of a country.
Pre-Requisite for Raw Material:
Agricultural advancement is necessary
for improving the supply of raw
materials for the agro-based industries
especially in developing countries. The
shortage of agricultural goods has an
impact on industrial production and a
consequent increase in the general price
level. It will impede the growth of the
country’s economy. The flour mills, rice
peelers, oil and dual mills, bread, meat,
milk products sugar factories, wineries,
jute mills, textile mills, and numerous
other industries are based on agricultural
products.
Provision of Surplus: The progress in
the agricultural sector provides a surplus
for increasing the exports of agricultural
products. In the earlier stages of
development, an increase in the exports
earning is more desirable because of the
greater strains on the foreign exchange
situation needed for the financing of
imports of basic and essential capital
goods. The potential of agriculture
includes “generating growth in export
earnings through increased cultivation of
crops, generating increased income for
labor and entrepreneurs who are
engaged in small scale industries as well
as large scales agro-based industries that
make use of agricultural products as raw
materials. Its commercialization and
investment are the key strategies for
promoting accelerated modernization,
sustainable growth and development

181
and, hence, poverty reduction in the
sector” (Olukunle, 2013) reiterated.
Improvement in agriculture can go a
long way in increasing savings. Surplus
earnings from rich harvests can be re-
invested into farming and agro-allied
businesses for further development of
the sector. Saving potentials are large in
the agriculture sector which can be
properly tapped for the development of
communities and the entire country.
Employment Opportunities for Rural
People: -Agriculture provides
employment opportunities for rural
people on a large scale in
underdeveloped and developing
countries. It is an important source of
livelihood. Generally, landless workers
and marginal farmers are engaged in
non-agricultural jobs like handicrafts,
furniture, textiles, leather, metalwork,
processing industries, and in other
service sectors. These rural units fulfill
merely local demands. In India, about
70.6% of the total labor force depends
upon agriculture. As at the year 2010 in
Nigeria, “agriculture alone was
employing about 30% of the population,
and this figure is steadily on the
increase” (Ikponmwosa, 2016). “Many
people from developing nations rely on
agriculture for livelihood. Some people
involved in other business or jobs still
have agriculture as a side business.
Agriculture market is one of the biggest
sources of employment. The
employment can be direct for farmers,
daily wage workers, farm machine
technicians like drivers for
tractors, harvester, farm cutting
machines, etc. Indirect farm
employment is not on the farm, the
source is linked to agriculture as
scientists in industries related seed
production company, farm machine
manufacture, pesticide and fertilizer
manufacture. There is also scope in
academics for teaching and scientist
jobs” (Studyread.com, 2016).
Improving Rural Welfare: It is time that
rural economy depends on agriculture
and allied occupations in an
underdeveloped country. The rising
agricultural surplus caused by increasing
agricultural production and productivity
tends to improve social welfare,
particularly in rural areas. The farm
sector in every country supports a range
of ancillary and service industries,
generating economic activity in supply
and distribution chains as well as
processing industries. Where farming is
the primary economic activity, the entire
rural economy, including services such
as health care, education, and basic
infrastructure, may depend on the
profitability of the sector. Throughout
rural areas, farming may contribute to
rural development by providing
environmental and cultural services to
society.
Minimize the Risk of Natural
Disasters:- It is believed, according to EU
(2000) that “society may demand that
farmers should manage their agricultural
activities in ways which also provide
environmental services to the

182
community as a whole, such as
minimizing the risk of certain natural
disasters, or cultural services, such as
conservation of rural heritage.”
Challenges of Agriculture in Nigeria
Ajumobi, (2016) and OSG (2015) noted
some challenges facing agriculture as
rain-fed agriculture; the unpredictability
of rain and a long spell of the dry season,
processing facilities, poor storage
facilities, transportation and soon”.
However, one of the major fundamental
constraints to agricultural growth and
development in Nigeria is “the peasant
nature of the production system, with its
slow productivity, poor response to
technology adoption strategies and poor
returns on investment” (Olukunle, 2013).
The high cost of modern Agric-
equipment to aid farming practices
forced many farmers to keep faith with
using their traditional crude implements
such as cutlasses, hoes, harvesters,
animal-driven plow, etc. in farming
thereby reducing yield in production
quality and quantity. Ajumobi (2016)
quoted Agbakoba-Onyejianya Amaka as
lamenting: “The challenges are
inextricably linked to the broader
challenges we face living in Nigeria
relating to lack of infrastructure, power
supply, and especially lack of
information.”
Other noticeable problems according to
OSG (2005) and Ajumobi (2016) include
such as listed below.
- The problem of Land Tenure: Land is
one of the most important factors in
agricultural production. The land tenure
is the way land is owned in a society. The
prevailing land tenure systems in the
country often discourage agricultural
land utilization. The land is owned by
inheritance hence land is fragmented
over generations. Increase in population
has increased the various alternatives to
which land can be put. This further puts
pressure on all the available land.
- Lack of Social Basic Amenities such as
stable electricity, standard schools, high-
interest and functioning health centers,
recreational spots for relaxation, good
roads, etc., are lacking in rural areas. This
often leads to the followings:
a). Rural-Urban drifts, that is people,
leaving the villages for jobs in the city.
b). Reduction in the working population
in the villages.
(c). Low agricultural production.
- Problems of Finance or Poor
Financing: Most agricultural activities in
the developing countries are subsistent
in nature; hence the farmers are very
poor. Cannot secure the necessary
collateral for loans or have access to
enough credit facilities which often
attract high-interest rates either from
financial institutions or money lenders,
etc.
- Poor Transportation: This includes bad
roads; high cost of bringing the farm
products from rural areas to urban

183
centers. Inefficient transportation
increases the activities of middlemen in
the movement of agricultural products
from the farm to the urban centers where
they are consumed.
- Technical Constraints which include
low support from the government, poor
government policy, and low level of
awareness, poverty, and lack of adequate
research results for industrial uses.
- Lack of good Storage and Processing
Facilities: Storage facilities like silo,
rhombus, cribs, barns, rafters are
inadequate, thus leading to perishing of
crops like tomato, pepper, etc. Pests and
disease attack farm products, etc. and
increase the cost of production thereby
reduce the quality of farm products and
farmers’ income and discourage farmers
from further production.
- Climate Change does result in natural
reduces yield. Excessive sunshine leads
to an increase in temperature while
inadequate sunshine reduces the
photosynthetic ability of plants. Onuba
(2012) quoted Priscilla Achakpa as
saying: “Climate variability and climate
impact threaten to undo or reverse
Nigeria’ social and economic gains.” In
summary, unfavorable climates reduce
farm activities from harvesting to sales.
- Agricultural Inputs such as
agricultural chemicals like insecticides,
and pesticides. Inputs like improved
seeds and seedlings improved animal
materials like the parent stock in birds
are lacking. The application of these
chemicals can lead to pollution of the
environment. Some inputs are very
substandard and do not meet the desired
result. Most of the inputs are imported
and are very expensive to procure.
- Sociological and Psychological
Attitude towards Farming: Young
people feel that farming is for the school
dropouts or never-do-well in society and
a profession for poor people. Farmers are
believed to be low class and the public
seldom reckons with the mas they do to
other careers/professions. Young people
also prefer white-collar jobs where they
can dress nicely.
- Environmental Degradation includes
Pollution of the environment through the
activities of the industries. Soil erosion
destroys the structure of the land. Setting
up of forest fire increases environmental
temperature. Deforestation reduces
rainfall, forest trees, and land protection.
Improper waste disposal can lead to the
spreading of diseases in the
environment. “Desertification is the
major all-season environmental malaise
plaguing most states in northern Nigeria
where more than 90 percent of its citizens
rely on fuelwood. The activities of
herdsmen whose animals grace on the
available vegetation compound the
problem, leading to low annual
cropping” (Oyeshola, 2008)
Prospects of Agriculture in Nigeria
The fact that agriculture provided the
basis for the world’s great civilization in

184
the past and laid the basis for, and
sustained the first industrial revolution
both in developed and developing
nations cannot be denied. Agriculture
plays a crucial role in the life of any
economy. It is the best alternative to oil
and gas in generating revenues/incomes
for our economic system. Agriculture not
only provides food and raw material but
also multiple employment opportunities
to a very large proportion of the
population. It is a sure bet to food
security. Omorogiuwa, Zivkovic, and
Ademoh (2014) posited that “Nigeria has
the necessary components in place to
return to an agricultural-based economy
which is not only possible but will
greatly benefit the entire country of
Nigeria.”
- Source of Raw Material-
Agriculture has been the source of raw
materials to the leading industries like
cotton and jute textiles, sugar, tobacco,
edible and non-edible oils, etc. All these
depend directly on agriculture. Apart
from this, many others like processing of
fruits and vegetables, corn milling, rice
husking, and also depend on agriculture
for their raw material. EU (2000) noted
that industries with an agricultural raw
material of origin accounted for 50
percent of the value-added and 64
percent of all jobs in the industrial sector.
- Vast Employment Opportunities:- The
agricultural sector is significant as it
provides greater employment
opportunities in the construction of
irrigation projects, a drainage system,
and other such activities. With the fast-
growing population and high incidence
of unemployment, it is only the
agriculture sector which provides more
job opportunities or employment
chances to all cadres of labor without
discrimination. In this way, the
significance of agriculture will be more
pronounced.
- Ready Market: Operating government
assisted markets, the introduction of
standard measuring scale (Osuwon
Omoluabi) for traders and buyers as well
as collaboration with some stakeholders
especially Lagos State Government, that
has the largest food market in Nigeria
and with over20 million people, to help
in opening market for Osun farms
products signals brighter prosperity for
farmers and the government of Osun.
Methodology
Data of the study were collected from
both primary and secondary sources.
The primary data for the study were
collected from the field through the use
of a structured questionnaire with the aid
of a personal interview.
Population, Sample and Sampling
Techniques
The population of this study is from the
small-scale livestock, cocoa and fisheries
farmers in Owode-Ede Local Council
Development Area, Osun State. The
population used was selected through
random sampling of sixty (60) farmers

185
from five farmers’ cooperative societies
within the study area.
Data Analysis Techniques
The data gathered from the sample of
the study were subjected to statistical
analysis by using the chi-square
method.
Chi-square test was used to test the
hypothesis.
The formula for Chi-square
X2=Chi-Square symbol computed and
calculated. o=Observed frequency of
any value. e=Expected frequency of any
value.
∑=Summation of the total volume
Degree of freedom (v)=N-1
Where;
N=Number of variables
Level of significance used is 5%=0.05
Hypotheses Testing
Contribution of agricultural development to sustainable income.
Variable No of
Respondents.
Percentage
(%)
YES 56 93.3
NO 4 6.7
Total 60 100
Source: Field Survey, 2016
Interpretation:-“Yes” has 93.3 percent,
“No” has 6.7 percent which implies that
small scale farming has contributed to
generating sustainable income for
farmers and the State of Osun.
Hypothesis
H0-Agricultural development does not
contribute to the sustainable income of
the farmers and Osun State.
H1 - Agricultural development
contributes to the sustainable income of
the farmers and Osun State.
Table 2. Impact of Agriculture on the Economy
2 2
X2cal=52.6
X2tab=(df, ls) Degree of freedom (df)=(r-1)(c-1)
Variable O E o–e o-e o-e e
Yes 56 30 26 676 22.5
No 4 30 -26 676 22.5
Total 45.0

186
(2-1)(2-1)
1x1=1
Level of significance (ls) =0.05
X2tab=0.05(1) =3.84
ThereforeX2cal=45.X2tab=3.84
Reject H1 and accept H0 when X2 cal is
lesser than X2 tab
Since X2 cal is greater than X2 tab, it was
observed that agriculture has an impact
on economic development of Owode
LCDA and by extension the Osun State
though it has not been well tapped into.
Findings
This study has tried to examine the
challenges and prospects of small-scale
farmers to generate sustainable income
for an improved standard of living and
contribute to the development of their
communities and the State. Agricultural
practices are integral parts of Owode-
Ede LCDA vis-à-vis State of Osun
development with its impact spreading
to other sectors. In addition, the study
covered the key dominant issues such as
roles, prospects, and challenges of agro-
allied enterprises which are the broad
objectives of the agriculture sector.
The important roles performed by small-
scale farmers and agro-allied
entrepreneurs can be seen in generating
income, poverty eradication programs
which include the provision of multiple
job/employment opportunities to all
cadres of the labor force without
discriminations. Also, small-scale
farmers/agro-allied entrepreneurs in
rural communities are faced with some
challenges and constraints, which
automatically impede the growth and
development of the LCDA/Osun.
These are some of the constraints.
- Insufficient personal savings/funds
resulting in low initial startup capital
- Lack of basic social amenities
- Poor transportation to ferry farm
produces/products to the urban
centers/markets.
- Poor storage, infrastructures and
processing facilities.
- The high cost of agricultural inputs.-
- Problems of climate change such as
floods, extremely high temperature, etc.
- Fluctuating and prohibitive interest rate
regime on loans from banks, private
lenders and even the governments.
In the hypothesis, it was discovered that
agriculture (farming and agro-allied
businesses) though operating in a
subsistence level has an impact on socio-
economic development of study area and
the Osun State.
Conclusion
This study examined whether
agricultural practices can be a good
source of generating sustainable income
for farmers in Owode-Ede LCDA and by
extension the State Government of Osun,
Nigeria. Results showed that the place
and roles of the agriculture sector to
generate sustainable income cannot be

187
overemphasized. It is so important that
successful and developed economy of
the world had explored it to the fullest in
order to have edge economically. The
State government can formulate
proactive agricultural policies meant to
encourage agro-allied enterprises, food
production, and other economic benefits
to enhance reliable internal revenue,
create multiple jobs and put her into the
rightful place performing socio-
economic, infrastructural and political
development of the state well. And to let
agro-allied enterprises succeed in
Nigeria, the agricultural problems most
especially in rural communities-the
custodians of agriculture need to be
addressed seriously and give strong
political will to solve the multiple
problems of the agricultural sector and
put the country on the match again
towards economic buoyancies.
Recommendations
Based on the findings of the study the
following recommendations are being
made:
Public-Private-Partnership between
State Government and private
entrepreneurs such as TUNS Farm
(Nigeria) Limited; JIL (Nigeria), Farmers
Congress, TJ Flour Mills (Nig.) Limited,
ABEBI Foods Enterprises, and IITA,
Bank of Agriculture (BOA) and Bank of
Industry (BOI), etc must be
strengthened. Collaboration between
Lagos State and Kebbi State for the
planting, production, processing,
packaging, and sales of LAKER ice
should be emulated to promote local
production, consumption and export of
farm produces.
1. In order to encourage local production of
goods, most especially farm products
and related services the government
should show a good example to promote
small scale industries by
patronizing/buying/using local made
products and services.
2.
3. It is paramount that agricultural micro-
credits by the state, Bank of Agriculture
(BOA) and other financial institutions,
made available to farmers’ cooperatives,
if possible at zero interest, should be
strengthened and repayments easy. One
way of achieving this is by providing
adequate funding of the agricultural
sector especially the Federal
Government.
4.
5. Adequate storage facilities are in dire
needed across the farm settlement and
other agriculture dominated
communities in Osun especially now
when the food security in Nigeria is
threatened. Provision of silos, barns, and
soon, is needful not only for food
sufficiency but also to, at all time, avert
usual wastages of farm produce like
tomatoes, pepper, oranges among others
that cannot stand the test of time during
harvest period.
6.
7. In a period like this when the country’s
food security is threatened it is highly
essential for government to make urgent
and adequate provision for modern

188
farming tools such as tractors,
harvesters, planters, sprayers etc. to
farmers at a subsidized price. Irrigation
facilities should be made available to
enable farming practices throughout the
year while provision should also be
made for locally produce fertilizers,
chemicals in order to reduce its cost. This
will encourage mechanized farming
practice, increase local food production,
reduce the level of hardship; increase
peoples interest most especially the
youth that see farming practice as a hard
task.
There is need for avenues that will
encourage farmers and agro-allied
entrepreneurs to liaise directly with
government on issues relating to
agriculture; the problems encountered in
the field, the possible ways of addressing
the problem. Through this, actual
farmers will be known and registered.
Such exercise will put a stop to leakages
which divert benefits to unintended
beneficiaries especially those outside
agricultural dominated activities or
corrupt government officials that
sometimes paraded themselves as
farmers in order to siphon the benefits
accrued to farmers from the government
and other local or international
supporting agencies to promote agro-
allied enterprises.
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