CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Cooperative is a natural idea among human beings. People have been cooperating

with each other in one way or another since the dawn of human history (Lekhi and

Singh 2012). According to Ijere (1992) cooperatives, all over the world, are

instrument of social and economic transformation. It has been recognized that the

cooperative organization has its roots in different parts of the world. The economic

organization brought about by industries in Europe did create a situation of suffering.

In that situation cooperative emerged out of the sheer urge for living better than they

were experiencing life at that time. Although cooperative emerged as simple form of

organization against the prevailing capitalist form of organization, thus, a cooperative

is a voluntary and organized association of a number of Individuals, dominated by

common needs for the purpose of carrying on collectively and independently an

economic function.

Agriculture is the foundation and bedrock upon which the development of stable

human community has depended on throughout the whole universe such as rural and

urban communities. Hence, agriculture constitutes one of the most important sectors

of the economy. The significance of agriculture productivity in bringing about

economic growth and sustainable development of a nation cannot be underestimated.

Agriculture has been defined as the production of food and livestock and the

purposeful tendering of plants and animals, (Ahmed, 1993). He stated further that

agriculture is the mainstay of many economies and it is fundamental to the socio-

economic development of a nation because it is a major element and factor in national

development.

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In a number of ways, cooperative societies play important role in global and national

economic development. With regard to economic development, cooperative societies

promote the “fullest participation of all people” and facilitate a more equitable

distribution of the benefits of globalization. They contribute to sustainable human

development and have an important role to play in combating social exclusion. Thus

the promotion of cooperatives should be considered as one of the pillars of national

and international economic development (Levin, 2002). In Nigeria, cooperatives can

provide locally needed services, employment, circulate money locally and contribute

to a sense of community or social cohesion. They can provide their employees with

the opportunities to upgrade their skills through workshops and courses and offer

youth in their base communities short and long-term employment positions. Students

could also be employed on casual-appointment basis during long vacations. Through

these, cooperatives will contribute to economic development.

Nigeria is generously endowed with abundant natural resources including biological

and non-biological resources. The resources of the entire world should be developed

to the fullest extent possible with available means as a whole can progress only by the

efficient and rational use of the natural resources. Resources depend on importance

attached to it. Hence, agriculture constitutes one of the most important sectors of the

economy. Agricultural sector plays a vital role in the economy development of

Nigeria. The agricultural sector contributes significantly to the gross domestic product

(GDP) and employed about 86 per cent of the rural households in the country (CBN,

2010; Fan et al, 2008 and Akpan, 2012). It is increasingly obvious that improvement

in the agricultural development and growth can offer a pathway from rural poverty,

but evidence-based macroeconomic policies and instruments are prerequisite. The

country’s agricultural policies and programmes over the years have been inconsistent,

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 poorly implemented and mostly emerged as ad hoc attempts. Such agricultural

policies have stunted the realization of the sector’s full potentials.

1.2 STATEMENT OF RESEARCH PROBLEM

Cooperative has been regarded as one of the main institutional machineries for the

development of economic and increasing agricultural productivity of the society. With

this official recognition and the determination of government (at all levels) to

transform agricultural production and raise the standard of living, many cooperative

societies have been formed all over the country.

Small-holder farmer including Nigeria has accounted for over 90% of all agricultural

output in Nigeria (World Fact Book, 2011). The farmers are burdened with high cost

of farm inputs, insufficient farming techniques, inadequate infrastructure, poor

producers’ prices and heavy constraints in obtaining credits and insurance. Benson

(2004) remarked that the situation is further compounded by the general economic

downturn and governments drive to remove all subsidies on inputs such as fertilizers,

vaccines and foundation stock. Despite the efforts made by the cooperative societies

towards agricultural and economic development in Nigeria, this effort has not been

evenly known and it was in an attempt to address such problem that this study was

designed.

1.3 OBJECTIVES OF THE STUDY

The general objective of this study is to acquire a deeper comprehension on

cooperative society as a cog for agriculture production and economic development.

Specific objectives are to;

1. examine the contributions of cooperatives to agricultural and economic

development in Ondo State.

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 2. identify the problems encountered by the cooperative in discharging their

functions.

3. ascertain if there is relationship between the government and cooperative societies

towards the development of agricultural productivity and economic development.

1.4 RESEARCH QUESTIONS

This research work seeks to answer the following questions;

1. What are the best contributions cooperative societies in Ondo State have made to

increase agricultural productivity and economic development?

2. What are the problems encountered by the cooperative in discharging their

functions in Ondo State?

3. Is there relationship between the government and cooperative societies towards

the development of agricultural productivity and economic development in Ondo

State?

1.5 RESEARCH HYPOTHES

1. H0. There are no significant contributions of cooperative societies Ondo State

have to increase agricultural productivity and economic development.

H1. There are significant contributions of cooperative societies Ondo State have

to increase agricultural productivity and economic development.

2. H0. There are no significant problems encountered by the cooperative in

discharging their functions in Ondo State.

H1. There are significant problems encountered by the cooperative in discharging

their functions in Ondo State.

3. H0. There is no significant relationship between the government and cooperative

societies towards the development of agricultural productivity and economic

development in Ondo State.

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 H1. There is significant relationship between the government and cooperative

societies towards the development of agricultural productivity and economic

development in Ondo State

1.6 SIGNIFICANCE OF THE STUDY

At the completion of this research work, it is of great importance to note that various

communities, towns, states in Nigeria will find the result of this research work to be

beneficial to great and marvellous extent, as this research work would play an

essential roles in the task of educational standard, growth and development of the

state and also will established the existing gaps between agricultural productivity and

Nigeria economic growth.

Policy maker will benefit from this research to know more about increasing in

agricultural productivity in Nigeria economy growth. It will also assist in providing

the frame work of where work has been done by earlier researchers. It will also

provide a framework on which further research in agricultural development and

economic growth could be carried out.

1.7 SCOPE OF THE STUDY

This paper examines cooperative society as a cog for agriculture production and

economic development with a view to throwing some light on the nature and features

of cooperatives as well roles of cooperative societies on economic development and

agricultural productivity, specifically in Oja Oshodi Akure South Farmers

Cooperative Multipurpose Society, Akure, Ondo State.

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 CHAPTER TWO

CONCEPTUAL FRAMEWORK AND LITERATURE REVIEW

2.1 LITERATURE REVIEW

Dauda (2007) evaluates the performance of Nigeria’s micro finance banking scheme

and observes that deposits generated significantly grew over the period of evaluation

(1992 – 2004). The study attributes the deposit growth to improved grass root banking

habit. Although their aggregate loan portfolio to agriculture and rural based real sector

activities increased nominally over the period, the credit exposures are relatively

much lower than their exposure to general commerce, (19.2% against 47.6%). The

study remarks that this trend is counter-productive to policy efforts at boosting real

sector growth and sustainable economic development in Nigeria. Oluyombo (2011)

attempt to investigate the contributions of microfinance banks to Nigeria’s economic

growth and employs credits disbursed by the microfinance institutions as a proxy for

their operational activities. The study employs the Ordinary Least Squares (OLS)

regression technique and finds a weak, though positive relationship between Nigeria’s

microfinance banking operations and the nation’s economic growth. Consequently, it

recommends that microfinance institutions should channel very high proportion of

their credits to the productive and real sectors of the economy for valuable impact of

their operations on Nigeria’s economic growth. Babajide (2012) studied the effects of

micro financing on micro and small enterprises (SMEs) in South West Nigeria using

Diagnostic Test Kaplan-Meier Estimate, Hazard Model and Multiple Regression

Analysis. The study indicates that microfinance enhances survival of small business in

South West Nigeria; that microfinance does not enhance growth and expansion

capacity of MSEs in Nigeria; that microfinance impacts significantly on the level of

productivity of MSEs operators in South West Nigeria and that the provision of non-

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 financial service by microfinance institutions enhances the performance of micro and

small enterprises (MSEs) in South West Nigeria. Okpara (2010) examines the critical

factors that induce poverty among the enterprising poor in Nigeria and the extent to

which micro credits have assisted in alleviating poverty. The study’s selected

causative factors for poverty include low profit, high cost of start-up or expansion

funds for business and low rate of business growth. Employing two-stage regression

technique within a quadratic equation framework, the study finds that in the first or

take-off stage of microfinance banking, poverty was observed to have increased,

though at a declining rate with increase in micro credits. In the second stage of the

study which started from the year 2001, persistent increases in disbursed micro credit

facilities are observed to have significantly lowered the poverty index in Nigeria.

Consequently, the study calls for policy measures to establish microfinance

institutions in every community in Nigeria

2.1.1 CONCEPT OF ECONOMIC DEVELOPMENT

Economic development, according to Harvard Professor Michael E. Porter is the

"long-term process of building a number of interdependent microeconomic

capabilities and incentives to support more advanced forms of competition." These

capabilities and incentives, which were originally identified in Porter's The

Competitive Advantage of Nations, 1990, include the nature and extent of the inputs

required by firms to produce goods or services; the rules, incentives and norms

governing the type and intensity of local rivalry; the quality of demand for local

services; and the extent and quality of local suppliers and related industries. In

contrast and compared to development, economic development is, in a limited sense,

an increase of the national income per capita, and it involves the analysis, especially

in quantitative terms, of this process, with a focus on the functional relations between

the endogenous variables; in a wider sense, it involves the increase of the GDP, GNP

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 and NI, therefore of the national wealth, including the production capacity, expressed

in both absolute and relative size, per capita, encompassing also the structural

modifications of economy. We could therefore estimate that economic development is

the process of increasing the sizes of national economies, the macro-economic

indications, especially the GDP per capita, in an ascendant but not necessarily linear

direction, with positive effects on the economic-social sector. It also shows us how

growth impacts on the society by increasing the standard of life.

Economic development is a complex, long-run phenomenon, subjected to constraints

like: excessive rise of population, limited resources, inadequate infrastructure,

inefficient utilization of resources, excessive governmental intervention, institutional

and cultural models that make the increase difficult, etc. Economic development is

obtained by an efficient use of the available resources and by increasing the capacity

of production of a country. It facilitates the redistribution of incomes between

population and society. Economic growth supposes the modification of the potential

output, due to the modification of the offer of factors (labour and capital) or of the

increase of the productivity of factors (output per input unit). When the rate of

economic growth is big, the production of goods and services rises and, consequently,

unemployment rate decreases, the number of job opportunities rises, as well as the

population’s standard of life. Some economists state that a rate of the GDP growth of

3% a year allows a rise of the potential GDP with 10% in three years and a doubling

in 23 years. According to the “rule of 70”, a rate of growth of 1% doubles the

potential GDP over a period of seventy years.

2.1.2 CONCEPT OF DETERMINANT OF ECONOMIC DEVELOPMENT

The concept of factors of economic development is very wide and of diversified

nature in the historical aspect of economic development. Different factors have

played important role in the economic development of different countries. The

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process of economic growth is determined by two types of factors i.e, economic and

non-economic factors. We study these factors of economic development separately as

under:

(A) ECONOMIC FACTORS / DETERMINANTS / PRE-REQUISITES

Some Important economic factors / determinants / Prerequisites are discussed below.

1. Natural Resources: The Principal factors affecting the development of an economy

are natural resources or land. Natural resources are such as fertility of the land, its

situation, forest wealth, minerals, climate, water resources, sea resources, etc. A

country that is deficient in natural resources will not be in a position to develop

rapidly. In LDCst natural resources are either un-utilized, underutilized or is utilized.

This is one of the reasons for their backwardness. Natural resources can be developed

through improved technology and an increase in knowledge. For economic growth,

the existence of abundant natural resources is not enough but their proper exploitation

is essential so that there is little wastage and they could be utilized for a longer time.

2. Capital Accumulation: Capital means the stock of physical reproducible factors of

production and the capital accumulation means the increase in the stock of real capital

in a country. It involves making more capital goods such, as machines tools, factories

transport equipment, materials, etc which are used for further production of goods,

The process of capital formation includes three inter-related stages.

(i) The existence of real savings and rise in them.

(ii) The existence of credit and financial institutions to mobilize savings and to divert

them in productive channels.

(iii) To use these savings for investment in capital goods.

SOURCES OF CAPITAL FORMATION

There are two types of sources of capital formation.

(A) Domestic Sources

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These sources are:-

(i) Individual savings.

(ii) Business savings.

(iii) Government savings in the shape of taxes and the profits of public sector.

(iv) Public borrowings.

(v) Deficit financing on which the government can fall back to obtain funds.

(B) Foreign Sources

The capital formation can also take place with the help of foreign capital which have

the following forms.

(i) Direct private foreign investment.

(ii) Foreign loans.

(iii) Loans from international Agencies,

(iv) Foreign remittances.

3. Human Capital: Labour is a human resource of production and human resources

refer to the population of a country. The population has its dual effect on economic

growth i.e. its rapid growth rate is the main obstacle to economic development and on

the other hand, more human capital increases the productivity of the economy. The

productive qualities of human capital are education, training, health, skill, and

efficiency of labour. The qualities can be increased due to providing health facilities,

training, increase expenditure on education and vocational institutions, etc.

4. Organization: The organization is an important part of the growth process. It relates

to the optimum use of factors of production in economic activities. The entrepreneur

has been performing the task of an organizer and undertaking risks and uncertainties.

The shortage of skilled personnel of various kinds such as workers, scientists,

technicians, managers, administrators etc possess a serious problem in the success of

entrepreneurship in underdeveloped countries.

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5. Water and Power Resources: Water and power resources play an important role in

shaping the economy of a country. The execution of policies in Pakistan is assigned

to an autonomous body called Water and Power Development Authority (WAPDA in

1958) and Karachi Electric Supply Corporation. The terms power refers to energy

which makes a machine to operate, machines are used in agriculture, manufacturing,

and other industries such as transport, construction etc. The machines improve

quality, reduce the cost and speed up the operation.

6. Transport and Communication: One of the important factors in economic growth are

the means of transport and communications. The transport means are railways, roads,

air, sea while the means of communications are radio, T.V., newspapers, telephone,

telegraph, or internet etc. The growth process in LDCs can be accelerated by widening

of the market through the adoption of modern means of transport and communication.

7. Technology: The technological changes are related to changes in the methods of

production which are the result of some new techniques of research or innovation.

Changes in technology lead to an increase in the productivity of labour, capital and

other factors of production. The LDCs must import modern technology to accelerate

its productive capacity. However, scientific and industrial technology to be useful in

an underdeveloped country needs careful processing and adoption in accordance with

its social, economic and technical absorption capacities and requirements.

8. Fiscal and Monetary Policy: The fiscal policy means the use of taxation, public

borrowing and public expenditure by the government for purposes of development.

The role of fiscal policy in developed countries is to stabilize the rate of

growth which in underdeveloped countries, is to accelerate the rate capital formation.

The monetary policy refers to the control and regulation of cost, availability of money

and credit. It adjusts the money supply according to economic requirements which

11
changes with the growth and expansion of the economy. Thus the fiscal and monetary

policies are complementary in nature for the economic development of a country.

9. Structural Changes: The changes imply the transition from a traditional agricultural

society to a modern industrial economy involving a radical transformation of existing

institutions, social attitudes and motivations. Such structural changes lead to

increased employment opportunities, higher labour productivity, stock of capital,

exploitation of new resources and improvement in the technology. Those structural

changes which affect technical skills, administrative and entrepreneurial activities and

the supply of capital are more important.

(B) NON-ECONOMIC FACTORS OR DETERMINANTS

The non economic factors/determinants have also important role in the process of

economic development. These factors are discussed as:

(1) Social Factors: Social attitudes, values and institutions also influence economic

growth. These inculcate the spirit of adventure which leads to new discoveries and

innovations. The people cultivate the habits of saving, investment and undertake risks

to earn profits. But in LDCs there are such social attitudes, values and institutions

which are not conducive to economic development. Therefore, these should be

changed or modified for economic development to take place. Social organizations

like the joint family, caste system, kinship, nepotism, regionalism etc should be

modified so that they may be more favourable to economic development.

(2) Political Factors: The political factors also help in economic growth. The weak

political structure is a big obstacle to the economic development of LDCs. The

behaviour of government plays an important role in stimulating or discouraging

economic activity, peace, stability, legal protection and encouragement of

entrepreneurship to investment. This can only be taken under clean and stable

political conditions. A stable government can develop a means of transport and

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 communications, successful plans, approved monetary and fiscal policies, for

accelerating economic development. In LDCs there is political instability, the

governments are being changed frequently by the imposition of dictatorship, There

are frequent political changes in Pakistan since partition so the planning work done

by the previous governments cannot help the developmental projects to be successful.

Therefore, the political instability is the main cause of stow economic growth.

(3) Administrative Factors: Administrative factors can help economic growth

effectively.

The weak administrative structure is a big hindrance to the economic development of

developing countries. Therefore, a strong, efficient and incorrupt administration is

essential for economic growth. Technical progress, factor mobility and large size of

markets can take place under clean administration.

The administrative evils i.e. red-tapism, corruption, bribery, nepotism, dacoit, theft,

embezzlement etc, are also obstacles to economic development to eradicate the above

evils, the members of the administration must be given a handsome pay and given

due promotion, The officials must be held responsible for their negligence. They must

not be allowed to misuse of their power and authority.

2.1.3 BENEFITS OF ECONOMIC DEVELOPMENT

Economic development refers to the enhancement in GDP and several other factors

such as the improvement in average earnings of the people in a nation. Whenever a

country’s GDP increases, it means that economic development has occurred, which is

very beneficial to that country and its people. Further below are benefits of economic

development.

1. Increases employment rate: Economic development leads to high employment rate.

When businesses and firms produce more products, their internal need for people

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 increases gradually and thus they are forced to hire more people. This action increases

employment rate significantly.

2. Enhances standards of living: Economic development is essential to a country as it

provides an enhancement in the standards of living of its citizens. It helps lower

poverty rates as well for individuals with low incomes. In fact, economic development

is regarded as the main method of lowering poverty in developing and

underdeveloped countries.

3. Boosts business confidence: Another key economic development benefit is that it

impacts positively on the assurance necessary for running a business. With the

gradual increase of profits from small businesses and firms due to economic

development, business confidence increases and the business people put more efforts

for even better profits.

4. Enhances tax revenues: As a country’s economy rises up, more taxes are collected

by the government. This offers the government the extra money it requires for

financing various projects. The end product is usually further development for the

country.

5. Better public services: Since economic development causes a significant increase in

the income possessed by the government, high amounts of money can be spent of

different public services such as NHS and education.

However, economic development usually comes about following the continuous

extraction of non-renewable resources. With this quick extraction rate, a country

might not be capable of sustaining the economic development for a long time.

2.2 CONCEPT OF AGRICULTURAL

Agriculture is the most comprehensive word used to denote the many ways in which

crop plants and domestic animals sustain the global human population by providing

food and other products. The English word agriculture derives from the Latin ager

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 (field) and colo (cultivate) signifying, when combined, the Latin agricultura: field or

land tillage. But the word has come to subsume a very wide spectrum of activities that

are integral to agriculture and have their own descriptive terms, such as cultivation,

domestication, horticulture, arboriculture, and vegeculture, as well as forms of

livestock management such as mixed crop-livestock farming, pastoralism, and

transhumance. Also agriculture is frequently qualified by words such as incipient,

proto, shifting, extensive, and intensive, the precise meaning of which is not self

evident. Many different attributes are used too to define particular forms of

agriculture, such as soil type, frequency of cultivation, and principal crops or animals.

The term agriculture is occasionally restricted to crop cultivation excluding the raising

of domestic animals, although it usually implies both activities.

The Oxford English Dictionary (1971) defines agriculture very broadly as “The

science and art of cultivating the soil, including the allied pursuits of gathering in the

crops and rearing live stock (sic); tillage, husbandry, farming (in the widest sense).”

2.2.1 TYPES OF FARMING SYSTEM IN NIGERIA

Nigeria’s climate is perfect for different forms of agriculture. Our country is

geographically located in the tropical zone. The local weather conditions are good for

growing vegetables in different parts of the country and perfect for cultivating various

types of crops in many areas. In addition, Nigeria cultivates many animals and plants

for the domestic market and for export.

1. IRRIGATED FARMING SYSTEM

An irrigation farming system is a system of supplying water to farming fields that lack

the sufficient moisture necessary for crop growth. This system increases the water

content in the root layer of soil in order to increase soil fertility and promote healthy

crop growth. Irrigation can be surface or subsurface.

USES

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 1. Irrigation makes the cultivation of cash crops possible ensuring good financial

returns to farmers. Cash crops such as sugarcane and potato survive well with this

system.

2. Groundwater storage is improved as water lost to seepage increases groundwater

storage.

3. It allows the growth of crops in periods when rainfall is inadequate.

4. Irrigation ensures the moisture content of the soil is maintained. This allows for

the proper germination of seeds.

5. The growth of plant roots is aided by irrigation.

6. Irrigation aids mineral nutrients absorption by plants from the soil.

2. TREE-CROP FARMING SYSTEM

This system is based on the production of industrial tree crops such as cocoa, coffee,

oil palm, and rubber. After these industrial tree crops are planted, food crops are

planted between them and are grown mainly for subsistence. Also, few animals are

also raised in addition to the planted trees and crops.

USES

1. Used to increase the profit of farmers.

2. Farmers save costs as their food supply is derived from the farm.

3. The animals also provide organic manure which serves as fertilizer.

3. ROOT CROP FARMING SYSTEM

This farming system has proven to be of high yield percentage in the country.

Cultivation of crops with this system follows a very long process but its main

advantage is that if a drought happens, the yield will not be affected. This system

ensures that the livelihoods of the local population are protected.

USE

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1. This system is used in areas that are prone to drought to reduce the risk of farmers

losing their investment. The crops planted have deep roots hence they reach way

down to get their nutrients ensuring they survive where shallow-rooted crops will fai

4. MIXED FARMING SYSTEM

The mixed farming system involves the use of one farmland for two or more

independent agricultural activities. A common example of mixed farming is the

combination of crop farming with livestock farming. This is the most common

farming system in Nigeria. Mixed farms are systems that consist of different parts,

which together should act as a whole. In Northern Nigeria, mixed farming is very

popular amongst farmers who rear cattle. It is the norm for these farmers to

supplement their livestock farming with crop cultivation.

The aim of this system is to ensure that livestock doesn’t depend on external sources

for food. Several heads of cattle are kept for plowing the land, sourcing for milk,

manure, payment of dowry, savings, and emergency sale. People who practice this

system usually are permanently resident in villages, but part of their cattle herds may

continue to migrate seasonally in the care of herd boys. This system is however

susceptible to drought leading to crop failure, weak animals, and distress sale of

assets.

USES

1.This system ensures that the fields are constantly in production all year round.

2.Organic manure in the form of animal droppings ensures that the fields continue to

be fertile every planting season.

3.Both farming activities are mutually beneficial to each other much to the farmers’

delight.

4.The profit of the farmer from the field is greatly increased due to increased activity.

17
 5.Farming cost is reduced as the crops serve as feed for the animals while the animals

supply the crops with nutrients through their droppings. All these reduce the running

cost of the farm.

6.The mixed farming system leads to the recycling of waste products thereby

reducing the emission of harmful greenhouse gases either directly or indirectly.

7.This farming system leads to an increase in biodiversity on the farm and this

reduces the risks of pest and disease outbreaks on the farm. This ensures both plants

and animals stay healthy.

5. CROP ROTATION SYSTEM

This system involves the planting of different crop types on a particular plot of land

each season. When the yield of the plot drops, the land is allowed to follow by not

planting on it for a while. When cultivation of this plat resumes, the yield will be

observed to increase again.

USES

1. It helps to control erosion by improving soil stability. Rotating between deep-

rooted and shallow-rooted crops each planting season keeps the soil stable.

2. This system allows farmers to increase productivity by reducing or replacing

fallow periods.

2.2.2 CONCEPT OF AGRICULTURAL PRODUCTIVITY

Agricultural productivity” may be defined in general terms as the ratio of the value of

total farm outputs to the value of total inputs used in farm production (Olayide and

Heady, 1982). Since one of the main objectives of any society is the attainment of an

optimal standard of living with a given amount of effort, any increase in productivity

of resources employed in farm production amounts to an increase in the standard of

living. Increases in agricultural productivity will therefore contribute to the well-being

of the economy as a whole. The ultimate objective of the interest of economists in

18
productivity should be to find ways of increasing output per unit of input and of

attaining desirable inter-firm, intra-firm, and inter-sector transfers of production

resources, thereby providing the means of raising the standard of living. The input-

output process of farm production according to Olayide and Heady (1982) is important

in at least four major problem areas: 1) the distribution of income; 2) the allocation of

resources; 3) the relation between stocks and flows; and 4) the measurement of

efficiency or productivity.

Agriculture is the economic mainstay of the majority of households in Nigeria (Udoh,

2000) and is a significant sector in Nigeria's economy (Amaza, 2000). The important

benefits of the agricultural sector to Nigeria's economy include: the provision of food,

contribution to the gross domestic product (GDP), provision of employment, provision

of raw materials for agro-allied industries, and generation of foreign earnings

labor(until the early 1970s; agricultural exports were the main source of foreign

exchange earnings) A sectoral analysis in 2006 of the real GDP indicated that the

agricultural sector contributed to about 42 percent of the GDP compared with 41.2

percent in 2005 (CBN, 2006). The growth rate of the contribution of the agricultural

sector to the GDP at 1990 constant basic prices grew from 4.2 percent in 2002 to 7.2

percent in 2006. The agricultural sector also employed over 60 percent of the total

labor force in Nigeria in 1999 (Adeoti, 2002). The advent of oil in the early 1970s

made Nigeria highly dependent on oil revenue, with the performance of the

agricultural sector adversely affected over years. Though the growth rate in the

agricultural sector in Nigeria increased from an average of about 3 percent in the 1990s

to about 7 percent in mid 2000, the food security/sufficiency status of Nigerians

continued to decline. (Adeoti, 2002). The dismal performance of the agricultural sector

in terms of its contribution to Nigeria's yearly total revenue in the last three decades

prompted the government to initiate several agricultural schemes and programs to

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 enhance agricultural productivity in Nigeria, which include the following: the River

Basin Development Authorities, the National Accelerated Food Production Project, the

Agricultural Development Project, Operation Feed the Nation, the Green Revolution,

the National Directorate of Food, Roads and Rural Infrastructure, the Agricultural

Credit Guarantee Scheme Fund, the National Special Programme for Food Security,

Root and Tuber Expansion Project, and the National Fadama I and II program.

2.2.3 ECONOMIC DETERMINANTS ON NIGERIA AGRICULTURAL

PRODUCTIVITY

Economic determinant in Nigeria is essentials for viable agricultural productivity,

farmers are particularly in need of such instrument such as (capital labor forces and

Real Exchange Rate) for instance record shows that 70% of the total population in

Nigeria before political independences they depend on agricultural activities but

because of the existed of crude oils and seasonal pattern of the instruments which

include climate change inadequate budget to agricultural sector and low agricultural

equipment’s the decline in food production will occur due to poor planting materials

and the uncertainly they are facing. Consequently, food production profiles in Nigeria

has been at lower Rate this lead to a rise in importation of agricultural product,

Economic determinant enhance productivity and promotes standard of living of

farmers , Numerically even though the agricultural sector in Nigeria contribute 42%

of the GDP by providing the employment and a means of livelihood for more than

60% of the productivity engaged population it receives less than 10% of the annual

budgetary allocation, thus under finding in this regard in central to decline in

agricultural output in Nigeria as a follows up the Nigerian agricultural development,

Bank of agriculture and cooperatives Bank Limited which is mean to provide credits

facilities to famers so as to increase more agricultural productivity in Nigeria.

However, Adagio and Dittos (2014) described Economic determinant as a way of

measuring value goods and services. Mood and Onasapnome (2012) stressed that
20
economic determinants are important for agricultural productivity due a reason they

enable farmers to launch and enlarge their farms to accelerate income and

productivity. The crucial role of economic determinant in agricultural productivity

can also be appraised from the perspective of the quality of problems emanating from

the lack of it, in recent faring activities in Nigeria provision of economic determinant

are not adequate but efficient utilization of such instrument become an essential for

increase agricultural productivity. The role of economic determinant is closely related

to providing needed resources which farmers cannot sources from their own available

funds (capital) in respect to this, the provision of economic determinant has become

one of the most important government activities in the promotion of agricultural

productivity in Nigeria (Olagunju & Adeyemo, 2011).

However, agricultural productivity has an essential role in accelerating the

performance of a nation’s economy; hence it is important for government to

emphasize on the diversification measures as well as the provision of credit facilities

to farmers for agricultural productivity, employment and sustenance of the economy

in general.

Olojedeao and Emeroleco (2016) study the socio economic determinants of

agricultural production among women farmers in Abia state, over the period of 2001

to 2011, the study employed Ordinary Least Square Method (OLS) and unit root test,

the result showed that the occupation, farm size and income exerted increase

agricultural production, the study also recommended that the government and private

sector should play their attention in assisting the women farmers. Awan and Alan

(2016) investigate the influence of agricultural productivity on economic value in

Nigeria from 1972 to 2012 by employing the auto-regressive distributed lags model

(ARDL) and ordinary leas square method (OLS). The result show labor and capital

are positively in influencing economic performance in Nigeria while the remaining

21
inflation that were tested are negative affect the economic growth in Nigeria and also

the study suggested that the government should ensure to employ labor forces by

increasing the higher education in both agricultural sector and industrial sector in

order to increase the agricultural productivity that leads to economic growth.

Alabiadeolu and Reuben (2014) investigate the determinants of agricultural

productivity in Nigeria, over the period of 1990 to 2010 by employing the augmented

dickey-fuller and ordinary least square method (OLS). The result revealed that, they

had contributed significantly and positively to the systematic variation in the growth

of agricultural products; also the study suggests that, the government and private

sector should focus their attention on effective’s procurement and timely agricultural

sectors through budgetary allocation. Suleiman and Nwosi (2009) examined the farm

level determinant of agricultural commercialization over the period of 1980 to 2001,

the study adopted the auto-regressive distributed lag model (ARDL), the result

revealed that the labor and fertilizer have contributed to agricultural

commercialization significantly and positivity while other variable that were tested

have contributed to agricultural commercialization negatively, the study also

recommended that the government should encourage the farmers by giving them

needed materials that used to provide more agricultural commercialization.

Murara and Ruigu (2010) analyze the determinants of agricultural productivity in

Kenya, covering the period of 1970 – 2000 by adopting the error correction

mechanism model (ECM). The result revealed that an increase in government

expenditure annual rainfall and labor forces caused an increase in agricultural

productivity on Kenya positively and significantly, the study also recommends that

the government should ensure to contribute and invest in agricultural sectors through

budgetary allocation.

22
2.3 EMPERICAL REVIEW

2.3.1 ROLES OF COOPERATIVE SOCIETY IN AGRICULTURAL

PRODUCTIVITY

Cooperatives societies are also known to be agricultural-producer-owned coops

whose primary purpose is increase member producers’ production and incomes by

helping better link with finance, agricultural inputs, information, and output markets.

Publication of the ATA Agricultural Cooperatives Sector Development Strategy

2012-2016, 2012 the large-scale introduction of agricultural coops in the 1970s and

1980s, with compulsory membership, was associated with declining agricultural

output per capita. In Ethiopia, when farmers were allowed to join or leave

cooperatives at will in 1991, cooperative membership fell drastically and yields rose.

Certainly, there have been cooperative success stories in the region for instance the

dairy sector in Kenya, coffee in Ethiopia, and cotton in Mali, for example. The

examples of Taiwan, India, and Vietnam also show that cooperatives can be

instrumental in agricultural sector. Unfortunately, to date, no African country has

achieved a sustained and large scale increase in staple crop yields as a result of

cooperative action and many cooperative development programs have failed to

achieve their objectives or have even been counterproductive.

One the purpose of agricultural cooperatives is to help farmers increase their yields

and incomes by pooling their resources to support collective service provisions and

economic empowerment. Given their primary remit to contribute to smallholder

farmer production, agricultural cooperatives are seen as critical in achieving the

government’s development targets in the Growth and Transformation Plan, and

focusing on other types of cooperatives requires an alternative framework for

analysis. The main categories of agricultural cooperatives fall into mainstream

activities of agricultural undertaking including supply of agricultural inputs, joint

23
production and agricultural marketing. Input supply includes the distribution of seeds

and fertilizers to farmers. Cooperatives in joint agricultural production assume that

members operate the cooperative on jointly owned agricultural plots.

The third category consists of joint agricultural marketing of producer crops, where

farmers pool resources for the transformation, packaging, distribution and marketing

of an identified agricultural commodity. In Africa, however, the most popular

agricultural cooperative mode has historically been the marketing of agricultural

produce after small farmers have individually completed their farm production

operations. But in some cases, agricultural cooperatives have combined both input

distribution and crop marketing. Cooperative as a business organization is owned and

operated by a group of individuals for their mutual benefits.

A cooperative may be owned and controlled equally by the people who use its service

or by the people who work with cooperative enterprise. Agriculture in the post

independent years was the main stay of Nigeria economy but suffered serious neglect

due to the oil boom in 1970’s. Agricultural production which then contributed about

80% to Gross Domestic Product (GDP) declined to less than 3% in the 1990’s and

2000’s. In order to redirect the situation, multitudes of programmes were initiated

which were not able to meet the objective for which they were designed to achieve.

This scenario was further constrained by the nation’s agricultural sector which is

characterized by small farm holdings (Olayide, 1980). He stated further that the

peasant farmers produce over 90% of the food crop grown in Nigeria using traditional

method coupled with obsolete farming implements. Olayemi et al. (1980) opined that

structural transformation of the present agricultural economy is inevitable for Nigeria

to be food secured in future. This needed transformation could only be achieved

through virile extension services because of its vital link between research stations

24
 and farmers. Olayide and Ogunfiditimi (1980), suggested agricultural cooperative as a

means to shorten the gap as well as rural transformation of agricultural sector as part

of dynamic social order. In addition, Mc Bride (1986), was of the opinion that

education of the cooperative members and leadership development are important for

the viability of the cooperative society since extension service have not been able to

reach out to all rural farmers, hence the need to use agricultural cooperative to

complement the effort of extension workers in conventional agricultural development

and bring about increase innovativeness in the farmers. In line with the above,

Oshuntogun (1980) is of the view that cooperative will enable the removal of element

of old social order which impede development and bring about increase in food

production among the small holding farmers.

There is need therefore to assess impact of farmers’ cooperative on their productivity

as this can enhance increase in food production which can lead to national food

security.

2.3.2 ROLES OF COOPERATIVE SOCIETY IN ECONOMIC DEVELOPMENT

Cooperatives are community-based, rooted in democracy, flexible, and have

participatory involvement, which makes them well suited for economic development

(Gertler, 2001). The process of developing and sustaining a cooperative involves the

processes of developing and promoting community spirit, identity and social

organisation as cooperatives play an increasingly important role worldwide in poverty

reduction, facilitating job creation, economic growth and social development (Gibson,

2005). Cooperatives are viewed as important tools for improving the living and

working conditions of both women and men. Since the users of the services they

provide owned them, cooperatives make decisions that balance the need for

profitability with the welfare of their members and the community, which they serve.

As cooperatives foster economies of scope and scale, they increase the bargaining
25
 power of their members providing them, among others benefits, higher income and

social protection. Hence, cooperatives accord members opportunity, protection and

empowerment - essential elements in uplifting them from degradation and poverty

(Somavia, 2002). As governments around the world cut services and withdraw from

regulating markets, cooperatives are being considered useful mechanisms to manage

risk for members and keep markets efficient (Henehan, 1997).

In a number of ways, cooperatives play important role in global and national

economic and social development. With regard to economic and social development,

cooperatives promote the “fullest participation of all people” and facilitate a more

equitable distribution of the benefits of globalization.

They contribute to sustainable human development and have an important role to play

in combating social exclusion. Thus the promotion of cooperatives should be

considered as one of the pillars of national and international economic and social

development (Levin, 2002).

2.3.3 NIGERIAN AGRICULTURE AS THE BASE OF THE ECONOMY

The metrics related to Nigeria’s recovery from the 2016 recession indicate that

agriculture has the potential to stimulate growth and support national efforts aimed at

boosting the economy. In the first year of implementation of the Economic Recovery

and Growth Plan (ERGP), the agricultural sector was the only one with positive

growth contribution (about 24%) to the national Gross Domestic Product (GDP). It

also grew by over 4% during the same period. But more importantly, agriculture

employs over two thirds of the country’s labour force. Nigeria’s Agriculture

Promotion Policy (2016-2020) has identified two key gaps in agriculture: an inability

to meet domestic food requirements; and an inability to export at quality levels

required for competitive performance and market success (FAO, 2018). As a result of

the economic recession and subsequent scarcity of foreign exchange, manufacturers,

26
industries and consumers were forced to source produce from within the country

thereby, creating opportunities for farmers, agricultural dealers, processors and other

actors involved in the agricultural value chains who inevitably had to respond to this

demand.

The growth currently being experienced in the agricultural sector is manifesting itself

through increase in the cultivation of land for food production and dedication of more

resources to livestock rearing (FAO, 2018). It stands out clearly that in spite of the oil,

agriculture remains the base of the Nigerian economy, providing the main source of

livelihood for most Nigerians. Agriculture is thus one of the main drivers of the

economy and of employment in the country. According to the FAO (2018) the

Nigerian agricultural sector accounts for 84% of those employed in Nigeria, working

mostly in family farms and private small businesses that are however not optimally

integrated into the value chains. While the Nigerian agricultural sector has strong

potential to employ the labour surplus that the youth provide, it is faced with a myriad

of problems affecting its performance. To further improve its attractiveness, the

agricultural sector has to be able to compete with other (FAO, 2018).

27
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

The design of this study is aimed at assessing the difference between the expected and

actual practice. Hence there is usually an acceptable standard of operation or

guideline set out for evaluation. The design was used because it not only informs

policy makers about the extent of implementation of the guidelines but equally reveals

areas of strengths and weaknesses and equips researchers to make recommendations

for policy reformations.

3.2 AREA OF STUDY

The area of the study consists of agricultural cooperative societies in Ile Oluji. There

are 300 members of Agricultural cooperative society in Ile Oluji. Members of

Agricultural cooperative Societies in Ile Oluji were estimated to be 300.

3.3 POPULATION OF THE STUDY

The population of the study was 75 which comprised active members of the

cooperative society. Questionnaires were distributed to members of the cooperative

society

3.4 SAMPLE AND SAMPLING TECHNIQUES

In this study, a total of sample size of 75 was chosen. Random sampling technique

was adopted for this study to ensure that all sample elements have equal chances of

being chosen, this is to ensure that, a corresponding and reliable result that can be

generalized. It ensures that the sample is representative in the characteristics used to

form the study. The purpose of this study is to obtain a sample that is representative of

the larger population in getting the respondents to respond to the questionnaires.

28
3.5 INSTRUMENT FOR DATA COLLECTION

The instrument was designed to obtain personal data on the respondents, information

and to make enquiry purposely for the cause of this study. The information so

obtained was used to ascertain cooperative society as a cog for agriculture production

and economic development.

3.6 VALIDATION OF INSTRUMENT

To ensure the effectiveness of the exercise, the experts were given initial copies of the

instrument; viz: the title of the study, the objective of the study, the research questions

and hypotheses. These helped them examine the instruments; determine adequacy of

items; relevance and suitability of language to the level of the respondents; structuring

and sequencing of ideas; possible ambiguities, errors and omissions.

3.7 METHOD OF DATA COLLECTION

The administration of the questionnaire was done personally by the researcher with

the help of some research lecturers as well as supervisor who was instructed on what

to do. Questionnaires were distributed, on the return rate, 75 questionnaires were

returned. Some members of the cooperative failed to fill these questionnaires because

of their busy schedule. The above reasons accounted for none return questionnaires to

the researcher.

3.8 METHODS OF DATA ANALYSIS

Data collected in the course of this study were presented and analyzed by using

descriptive statistics. The collected data was checked for consistency and then

frequencies and percentages used to show responses of the distribution. The results

were presented in tables and chart form.

29
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

This chapter is about the analysis and presentation of data collected from the field

through questionnaire. The analysis of the data with particular question immediately

followed by the presentation of findings. As mentioned in chapter three, 150

questionnaires were administered and 75 were also retrieved and necessary analysis

was carried out on them.

4.2 DATA ANALYSIS PRESENTATION AND INTERPRETATION

This is the presentation of the quantitative data collected from the respondents

through the questionnaire drawn-tabulation and percent.

Table 4.1: Sex structure of respondents

Frequency Percent
Male 250 83

Female 50 17

Total 300 100

The data shown in the table above indicate that out of the total respondent

size, 83% were male while only 17% were female. This is an indication

that there are a greater proportion of males to females in the cooperative

society.

Table 4.2 Age Distribution

Frequency Percent
30-35 years 70 23

36-45 years 130 43

46-55years 26 9
30
 56-65 years 25 8

Total 300 100.

Table 4.2 which is descriptive table of values showing the respondents age

distribution. It can be ascertain that (23%) were between ages 30-35, (43%) were

between ages 35-45, (9%) between ages 45-55 while (8%) between ages 55-65.

Table 4.3 Marital status of the respondents

Frequency Percentage
single 80 27
Married 281 94
Divorced 19 6
Total 300 100
Table above showed the marital status of the respondents. The data collected

indicated that 27% of respondents were single, 94% were married while 6% were

divorced. This simply implies that the majority of the respondents were married.

Table 4.4 Educational Qualification

Frequency Percent
OND/NCE 277 92

HND/B.Sc 18 6

Master degree 5 2

Total 300 100

Table above showed the number of the respondents by qualification. The data

collected indicated that 92% of respondents were OND/NCE holder, 6% were

HND/B.Sc holder, and 2% were Masters Degree holder. This implies that the majority

of the respondents were HND/B.Sc Holder.

31
Table 4.5 Responses on the type of agriculture activities practice at
individual’s area

Frequency Percent
Cereal crop production(maize ,sorghum, wheat ,toffee ,millet) 101 34

Cash crop production( pepper , Soya been,) 25 8

Fruits trees production or Root crops or vegetables 77 26

Livestock production 97 32

Total 300 100

The table above shows the agricultural activities practice in the in the selected in

Ondo State. From the table 97 representing 32% of the respondent practice Cereal

crop production such as (maize, sorghum, wheat, teffee, millet), 25(8%) of the

respondent practice Cash crop production such as (pepper, Soya been,), 77(26%) of

the respondent practice Fruits trees production or Root crops or vegetables while

101(34%) of the respondent practice Livestock production. Therefore from the table it

is shows that majority of the respondent practice Cereal crop production.

Table 4.5 To what extent do you think that cooperative societies involvement

as contributed to agricultural activities to the economy of the centre of

population?

Frequency Percentage
To a great extent 125 51
To some extent 175 58
Total 300 100
The above table shows the contribution of cooperative society activities on

agricultural productivity and economic development which indicated that 125(51%)

of the respondents said that cooperative societies actively involved in agricultural and
32
economic productivity to a great extent while, 175 representing 58% of the

respondents said that cooperative society actively contribute to some extent.

Table 4.6: Do you think the agricultural development project in your

organization can help farmer’s empowerment status and income
generation activities?

Frequency Percent

Strongly Agreed 157 52

Agreed 55 18

Undecided 29 10

Strongly Disagree 31 10.3

Disagreed 28 9.6

Total 300 100

The above table indicated that (52%) of the respondents strongly agreed that

agricultural development project in the organization can help farmer’s empowerment

status and income generation activities, (18%) of the respondents agreed as well, 10%

of the respondents were doubtful. However, 10.3% of the respondents strongly

disagreed while about 9.6% of the respondents disagreed as well.

Table 4.7 Cooperative society development processes have tremendously

promoted the agricultural productivity as well as the development of economy at

Oja Oshodi Akure South Farmers Cooperative Multipurpose Society, Akure to

greater high?

Frequency Percent
Yes 92 31

No 201 67

Not sure 7 2.3

Total 300 100

33
The table above shows that majority of the respondent constituted (67%) of the

respondents disagreed that cooperative society development processes have not

tremendously promoted the agricultural productivity as well as the development of

economy at Oja Oshodi Akure South Farmers Cooperative Multipurpose Society,

though about 31% of the respondent affirm to the statement while (2%) of the

respondents were not sure.

Table 4.8 To what extent do you think that government participation in

cooperative society activities contribute to the economy and agriculture

development of the farm?

Frequency Percent
To a great extent 112 37

To some extent 154 51

Hardly 34 11

Total 300 100

Table 4.9 shows responses on the extent to which government participation in

cooperative society activities contribute to economic and agriculture development of

the study area. According to the respondents, it was revealed that 37% of the

respondent agreed the contribution is to a greater extent while 51% of the respondent

said the contribution is to some extent. However, 11% of the respondents said the

contribution is hardly effected. The above calculations indicated that government

participation in cooperative society activities effectively contribute to the economy

and agriculture development of the farm.

Table 4.9 In order to ease the productivity, farmer’s loan is granted to

farmers’ in by communities’ association, micro finance institution and

cooperative society for the development of agricultural project.

34
 Frequency Percent

Strongly Agreed 101 34

Agreed 58 19

Undecided 44 15

Strongly Disagree 16 5

Disagreed 81 27

Total 300 100

The above table indicated that 101 (34%) of the respondents strongly agreed plus

agreed that farmer’s loan are granted to farmers in farm by micro finance institution

and corporative society for the development of agricultural project. While (15%) of

the respondents were undecided that farmer’s loan are granted to farmers by their

communities association, micro finance institution and corporative society for the

development of agricultural project. However, 5% strongly disagree with the

statement above while 27% disagreed as well.

Table 4.10 Government of my state contribute to the development of

agricultural activities of my communities through donation of farm equipment

and fertilizer to the farmer.

Frequency Percent

Strongly Agreed 198 66

Agreed 59 20

Undecided 15 5

Strongly Disagree 17 6

Disagreed 11 4

Total 300 100

The above table show that 198 representing 66% of the respondents agreed plus

strongly agreed that government of their state contribute heavily to the development
35
of agricultural activities of their communities through donation of farms equipment

and fertilizer to the farmers while 15(5%) of the respondents are undecided about the

statement. Also, 20% also agreed to the statement, 6% of the respondents strongly

disagreed while 4 of the respondents disagreed as well.

Table 4.11 What are the problems encountered by the cooperative in

discharging their functions in Ondo State?

Frequency Percent

Difficulties in obtaining government facilities 151 50

Poor transport facilities 65 22

Lack of capital 39 13

Low level of cooperative education 45 15

Total 300 100

The table above shows that (50%) of the respondents said difficulties in obtaining

government facilities is one of the problems encountered by the cooperative society in

discharging their function. About 22% if the respondents said poor transport facilities,

13% of the respondents said lack of capital while about 15% Low level of cooperative

education.

36
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND POLICY

RECOMMENDATION

5.1 SUMMARY OF FINDING

Agriculture contributes to the growth of the economy, provides employment

opportunities for the teaming population, export revenue earnings and eradicates

poverty in the economy. Abayomi (1997) stated that stagnation in agriculture is the

principal explanation for poor economic development, while rising agricultural

productivity has been the most important concomitant of successful industrialization.

Agriculture is the foundation and bedrock upon which the development of stable

human community has depended on throughout the whole universe such as rural and

urban communities. The agricultural sector has suffered from years of poor

management, inconsistent and poorly implemented government policies, government

neglect and lack of basic infrastructure. Agriculture accounted for 30% of the GDP in

2010 (World Factbook, January 9, 2012). Co-operative business is the route to

ownership of capital and small scale business and likewise participation towards the

economic and industrial growth of the nation. Also, the design of this study is aimed

at assessing the difference between the expected and actual practice. Hence there is

usually an acceptable standard of operation or guideline set out for evaluation. The

design was used because it not only informs policy makers about the extent of

implementation of the guidelines but equally reveals areas of strengths and

weaknesses and equips researchers to make recommendations for policy reformations.

The significance of this study depends on the fact that with improved economy

Nigeria stands to gain in its effects toward development. This work attempts to

answer the following questions; what are the best contributions cooperative societies

in Ondo State have made to increase agricultural productivity and economic

37
development, what are the problems encountered by the cooperative in discharging

their functions in Ondo State and is there relationship between the government and

cooperative societies towards the development of agricultural productivity and

economic development in Ondo State

Based on our object of the study and the finding of the research, it was find out that

increasing in agricultural productivity as well as promoting economic growth is

essential. The result of the analysis shows us that the people in the study area are

engaged in agricultural activities and the major agricultural productivity practices are

livestock production. From the finding, it can be inferred that people participate in

agricultural activities to a great extent with money been the motivating factors.

It abstract that government contributes to development of agricultural activities

through donation of farm equipment and fertilizer. Also the result of our analysis

shows that farmer’s loan is granted to farmers in the organization by communities

association, micro finance institution. The study analysis also revealed that

contribution of cooperative society activities on agricultural productivity and

economic development actively effected to a great extent. It was strongly agreed to

that agricultural development project in the organization can help farmer’s

empowerment status and income generation activities. The findings of the study

revealed that majority of the respondent constituted (53%) of the respondents

disagreed that cooperative society development processes have not tremendously

promoted the agricultural productivity as well as the development of economy at Oja

Oshodi Akure South Farmers Cooperative Multipurpose Society, though about 17%

of the respondent affirm to the statement while (31%) of the respondents were not

sure.

38
5.2 CONCLUSION

From the data gathered an analyzed by the researcher and following the major

research finding above, the researcher drew the following conclusion:

Cooperative societies have tremendously promoted agricultural productivities and

economic growth in the study area and Nigeria at large. The result of the finding

shows that majority of the people in the study area are farmers and livestock

production is the major farm product practice in the area. The result of the analysis

also revealed that people participate in agriculture activities in order to earn money.

Equally, the study revealed that government participated immensely in the

development of agricultural activities through donation of farm equipment and

fertilizer to the farmers and also micro finance activities in granting farm loan to

farmers cannot be over emphasizer. Also we were able to discover that the only way

to boost agricultural output is by developing the sectors.

5.3 RECOMMENDATIONS

Based on the findings of this project, it can be seen that industrial conflict affects

organizational productivity, except if it is handled with care. Recommendation made

includes the following;-

 It is recommended that policy towards improving the infrastructure in the farming

area be re-invigorated so as to aid economic developement. Essentially, farmers

access to feeder roads, health care services and electricity should be considered as

important prerequisites on which the outcome of other agricultural Programmes, such

as fertilizer subsidy, improved seed and credit Programmes.

 Government should invest heavily in rural infrastructure development that will

promote private investment in all areas of agriculture and facilitate linkage of

agriculture to industry. The rural electrification programme should be intensified to

cover all rural villages in the country.

39
 Improve agricultural production, processing and trade through increased access to

resources such as land, technology (improved inputs) credit, and training. Adoption of

modern farming and husbandry practices such as planting of improved seeds and

seedlings, application of agricultural chemicals for pest and disease control and

tractors to reduce drudgery and enhance yields should be facilitated by assisting the

farmers in sourcing improved technologies. Small-scale irrigation in all agro-

ecological zones of the country should be promoted and strengthened.

 Government should sustain its drive to achieve a stable macroeconomic environment,

which manifests largely in price stability. On the social front, government should

ensure security of life and property to attract domestic and foreign investment to the

sector.

 Increased support for Agricultural Research and Extension: There is the need to

strengthen agricultural research activities through increased and stable funding, proper

coordination, strengthening of linkages among research centers as well as adequate

training of research and technical staff in specialized skills.

 Research systems must identify new mechanisms to find out why farmers do what

they do, their research needs and priorities.

 Employment and income generation should be enhanced through promotion of

diversification of rural economy. Government should support capacity building

among small-scale farmers and facilitate linkages with large processors and

manufacturers using agricultural commodities so as to develop long-term contractual

arrangements among them. Also government should promote value-added agriculture

to provide stimulus for wealth creation and employment creation.

 Increased funding of the agricultural sector so as to improve efficiency of institutional

agencies for agricultural development. The functions of the agencies should be

streamlined to ensure adequate funding for their core functions.

40
41