THE IMPACT OF NIGERIAN AGRICULTURAL INSURANCE CORPORATION (NAIC) ON RICE PRODUCTION IN GORONYO AND BINJI LOCAL GOVERNMENT AREAS OF SOKOTO STATE, NIGERIA

Abstract

ABSTRACT The study on the impact of Nigerian Agricultural Insurance Commission on rice production was conducted in Goronyo and Binji local government areas of Sokoto state. Data was collected from 120 respondents using a structured questionnaire. The objectives of this study was to identify the socioeconomic characteristics of the beneficiaries of the Nigerian agricultural insurance corporation and the non-beneficiaries of the programme, compare the cost and returns of both categories of farmers, analyze the level of emergency assistance rendered to the beneficiaries by NAIC, compare the production efficiencies of both categories of farmers and the determinants of the efficiencies, lastly, to know the impact of the programme on the beneficiaries. The primary data used to obtain data from the respondents was a structured questionnaire administered to 120 respondents, 60 beneficiaries and 60 non beneficiaries. The analytical techniques used in the analysis were descriptive statistical tools such as mean and percentages, the net farm income model, the stochastic production frontier model and the propensity score matching model. The results showed that estimated average net farm income for the beneficiaries was ₦262,033 while the non-beneficiaries had a net farm income of ₦143,838 signifying that the beneficiaries have a higher net farm income compared to the non- beneficiaries. The mean efficiency of the beneficiaries obtained was 94.54% signifying that there was a 5.46% allowance for improving technical efficiency. The mean efficiency of the non-beneficiaries obtained was 61.78% signifying that there was a 38.22% allowance for improving efficiency. This study suggests that there is need to create awareness and enlighten rural farmers on the importance, function, and advantages of participating in Nigerian agricultural insurance corporation(NAIC).