Hectrage Response of Some Selected Cereal Crops to Price and Non-Price Factors in Nigeria (1983-2008)

Abstract

The Study aimed at estimating the hectrage response of maize and sorghum to changes in price and non- price factors in Nigeria between 1983 and 2008. Time series data in respect of weather index approximated by the national mean rainfall (millimeters), area harvested (hectares), producer price in local currency (Naira/ton), and the annual yield (Kg/hectare) of the selected cereal crops were obtained. Unit root tests, via Augmented Dickey Fuller (ADF) equation, were conducted on the data series to determine the stationary properties of hectrage, price, yield and mean rainfall. Estimation was carried out using the Heteroskedasticity and Autocorrelation Consistent Covariance Estimator. Results of maize response function showed that, own price and yield were significant at 10%, lagged hectrage was significant at 1%; while yield of sorghum was significant at 5%. On the other hand, results of sorghum response function showed that lagged hectrage was significant at 1%, while the yield of the crop, yield of maize and weather were significant at 5% level. The major trend in this study is that lagged dependent Variable(lagged hectrage) has been found to be a significant determinant of hectrage allocation in the cultivation of  the crops studied; and  yield, rather than price was more important in hectrage allocation decision of farmers in Nigeria. Efforts should be geared towards enhancing land management practices, expansion of cultivable land and accessibility to same by farmers to encourage cultivation of more land for increased crop productivity and achieving stable yields.

Keywords: Hectrage Response, Unit Root Test, Heteroskedasticity and Autocorrelation Consistent Covariance, Response Function.