Determinants of Agricultural Output: Implication on Government Funding of Agricultural Sector in Abia State, Nigeria

Abstract

Using secondary data generated from the Abia State Agricultural Development Programme, National Root Crops' Research Institute Umudike in Abia State and the Central Bank of Nigeria, the determinants of agricultural production in the State were examined. The Ordinary Least Squares (OLS) regression analysis was applied to the data. Result show that total land area cropped, total annual rainfall and total population were strong factors that significantly determined total crop output in the state at 1% level. Whereas the total land area and total annual rainfall were positive in their signs, the total population was negative. Government therefore need to do more to ensure that insufficient food that the rapidly growing population would depend on is addressed. Government spending on agriculture would need to be revisited in terms how the fund is applied to ensure that it meaningful affect the rural agrarian economy.