Tobit analysis of the effects of institutional services on input use intensity among smallholder farmers in Oyo State, Nigeria

This study examined the Tobit analysis of institutional services of credit, input supply, and extension in the overall commercial transformation process of smallholder agriculture in Oyo State, Nigeria. Multistage sampling technique was used to select the smallholder farmers in the study area. A total of 350 copies of questionnaire was desired and was administered. Data were subjected to descriptive statistics and tobit regression analysis. The literacy level of the respondents revealed that 45.27% of the respondents had no formal education; others (54.73%) had formal education ranging from primary to tertiary. The mean age in Ogbomoso Zone was 51 years, while that of Oyo Zone was 52 years. Average land holding in the zones was about 2 hectares. The two zones recorded lower number of extension visit in the farming year under study. Tobit estimates showed that simultaneous access to credit for fertilizer, access to credit for agro chemical, access to credit for seed, access to improved seeds, farm size, and years of schooling were important determinant factors of fertilizer, agro chemical and seed use intensity. It was concluded that, smallholders’ simultaneous access to well integrated institutional support services is crucial in getting farmers to participate both in input and output markets for a better income through intensified and market oriented agriculture.