how to develop our country.
1. lending of hand to the poor,
2. stop killing ourself,
3. stop embezling our money,
4. maintainig our facilities,
4. improving our health facilities,
5. maintaining our road
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Public Sector Response |
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ayodeji
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THE ROLES OF AGRICULTURE, PETROLEUM AND ENERGY IN COMBATING POVERTY AND PROMOTING ECONOMIC DEVELOPMENT
ayodejiBY
PROFESSOR JULIUS OSEMUDIAMEN MNIM, ASEE, FCE Department of Economics, National Open University of Benin, Calavi. Visiting Professor, Universite d’ Abomey, WISCONSIN, OAU, UNAD, and OOU Tel:- 08028286688, 0807594787, E-mail Joseprince 2009@yahoo.com
An address presented to the Institute of Chartered Economists of Nigeria (ICEN) Mandatory Advancement Continuous Educational Programme held on June 29th and 30th 2007 at Glover Memorial Hall, 4 Customs Street, Marina, Lagos.
Your Excellences Members of the Federal and State Executive Councils here present,
Your Royal Majesties/Highnesses here present,
The Director – General Institute of Chartered Economists of Nigeria,
The president, Institute of Chartered Economists of Nigeria,
Gentlemen of the press,
Distinguished inductess,
Ladies and Gentlemen.
The invitation extended to me to present this paper before these respected dignitaries is most treasured and appreciated. I therefore make this present with great pleasure and exhilaration.
History of Farming
Early man was known to be a wanderer, moving from place to place in search of food. He was a food gatherer, gathering fruits, seeds, leaves, and roots from plants growing in the bush. When he wanted meat, he hunted wild animals. Some of these animals also provided him and his family with warm skins to wear. Because man as a food gatherer and hunter was never sure of finding his food, he often went hungry. Early man travelled long distances because the plants he looked for would not be growing thickly in one place. Again, if the land in a particular place was dry and the plants did not grow well in the soil, man moved on to another area. Men could not live together in villages because they were wanderers.
By accident, men discovered that the spoiled fruits that they threw away contained seeds which would grow and produce more food. From this discovery they learned to plant their food and thus farming began. Soon men learned to make huts or bush houses for their families and around these their farms developed.
As people learned to settle down, they started to keep animals so that there was no need to go and hunt for them. There is the story of a hunter who killed a mother animal and took the babies home to nurse. He found that these animals became so friendly that they would stay where they were put if provided with adequate food. The animals grew and reproduced.
With experience, the farmer learned how to grow seeds and found that his own strength could not cope with the task so he began to seek for help, first from his family and then from his neighbours. Later, the farmers started to use farm animals for farm work and today they can use tractors and other farm machines.
Importance of Agriculture
The most important role of agriculture is that it provides food for the people. Different kinds of food are eaten for the following reasons:
1. Carbohydrates, fats, and oils as sources of energy.
2. Proteins for body building, repair and maintenance..
3. Minerals and vitamins for regulation and stimulation of normal body
functions.
4. Roughage provides the bulk which keeps away hunger, and aids digestion.
In West African countries the agricultural output is low, with the result that only about 30-65 per cent of the food eaten by the people is produced locally. This points to the fact that a great deal of what we eat has not come from local farms. West African countries still depend largely on imported food products to feed the ever-increasing population. Agricultural products' like rice, maize, fish, wheat, milk and sugar are still being imported on a large scale. The importation of these food products is a waste of the precious foreign currency which could be used to buy other goods if West African farmers could produce more food.
Food is a basic requirement of all human beings. If a large percentage of the population of a country is badly fed, people will never be in good health. If they have enough food, their physical, mental and economic activities will be increased, and they can stay healthy,
Agriculture also provides people with various materials. For example, many of the clothes which we wear come from cotton plants or sheep's wool. Agriculture also provides materials for building huts, tents and houses. All these protect us from being exposed to cold, heat of the sun and rain. If we make a list of the things we use daily in our homes, we will find that many of them are produced either directly or indirectly from agriculture,
Agriculture is also important because it provides a means of livelihood for many people. Farming is an important industry if we think of all the people who work on the farms to make a living. There was a time when almost all the population worked on the land or was connected with it. But workers continue to leave rural areas for better paid jobs in the towns, with the result that the number of people engaged in farming in West Africa is going down. Even so, about 70-75 percent of the population of West Africa is still engaged in agriculture and related activities. With the introduction of farm machinery and scientific methods, fewer people can produce more food. In highly developed countries like the United States, and Western Germany, less than 10 per cent of the population now provides adequate food for the entire population.
Many people work and earn their living with the various companies and firms associated with agriculture. For example, some people work with companies which sell fertilisers, farm machinery, poultry, pesticides and livestock feeds. Many people do the work of processing and packing agricultural products, for example, in sugar cane refineries, oil palm mills, cocoa processing plants and so on. Table 1.1 Agricultural Products and the factories they sustain in West Africa
AGRICULTURAL RAW MATERIALS FACTORIES SUPPLIED FINAL PRODUCTS
1. Citrus fruits Canning industry Canned fruits (pineapple fruit/juice)
2. Beef Canning industry Canned beef (example, corned beef)
3. Hides of cattle Local factories Leather goods and handbags
4. Palm produce Oil mill and soap factories Oil and soap
5. Cotton Textile mills Clothing and materials
6. Timber Plywood factory Plywood
7. Groundnuts Vegetable oil factory Vegetable oil
8. Cocoa Cocoa industries Chocolate and beverages.
Agriculture provides plant and animal raw materials for industries. Agriculture in West Africa sustains many industries. At present we have many industries located in West Africa, so the bulk of the agricultural products are exported to feed industries located in overseas countries. For example, most of West African cocoa, groundnuts and palm oil are exported to factories in Europe and the United States.
Table 1.1 shows agricultural products and the factories they sustain in West Africa.
Agriculture is very important to the economic development of any country, including the developing countries, because it helps to earn foreign exchange. No country can 'provide itself with all the material it needs. This has brought about the regular exchange of goods between nations of the world.
For example, Nigeria's major trading partners are: The United Kingdom (U.K.), United States of America (U.S.A.), France, West Germany, Italy, Belgium and Luxembourg, Japan, The Netherlands, Norway, Sweden, Denmark, Canada etc.
The countries which buy our products pay in their own currency such as U.S. dollars, pounds sterling or Deutschmarks. The countries of West Africa use this foreign exchange earned by their agricultural exports to pay for the imported manufactured goods, e.g. vehicles, industrial machinery, agricultural machinery like tractors and harvesters, etc., which are necessary for economic development, as well as luxury goods which are not produced in West Africa.
Cocoa is the largest agricultural export from both Nigeria and Ghana. Palm products are the most important exports from both Sierra Leone and Benin.
COUNTRY PRINCIPALAGRICULTURAL EXPORTS
DahomeyGambiaGhanaIvory CoastLiberiaNigeriaSenegalSierra Leone Palm products (kernels and oil) Groundnuts, palm products Cocoa, timber.Groundnuts, palm productsCocoa, timberCoffeeRubber, Coffee, Cocoa, Palm ProductsCocoa, rubber, palm products, timberGroundnutsPalm products, Coffee, Cocoa.
Table 1.2. A summary of the principal West African Agricultural export by country.
Problems and Solution of Agricultural Development in Nigeria
IN most developing countries, particularly in Africa, labour is relatively cheap and as such most people are engaged in agricultural activities. In Nigeria, at the present time, over 70 percent of the population derives its income directly or indirectly from- agriculture. The aim of any developing country is to be able to transform its economy from rural to industrial economy, and this is often achieved through agricultural development, through which the raw materials to be used in the industries are produced.
Agriculture, as important as it is, is faced with some difficult problems in Nigeria, which include:
1) Land: There is pressure on land as population in Nigeria is increasing at an alarming rate. As a result of the increase in population, the amount of farm land available per farmer is greatly reduced.
Also the type of tenure system practised in most places does not make land available for farming, for example, the communal land tenure system in which land is made available only to members of the community. This means that able farmers who want to commercialise Agriculture cannot use the land because they are not from that community. Whereas, most of the time, greater part of that kind of land is not cultivated.
Another system of land tenure is inheritance, in which a piece of land is shared from generation to generation. This leads to land fragmentation. The land available to individual farmer becomes so small that such a land cannot feed the family for the year round, let alone for commercial purposes. It is also too small for large capital to be invested on it or to be mechanised.
Deforestation in most parts of Nigeria without replacement with younger tree seedlings exposes the land to various agents of soil erosion, and such lands easily lose their fertility thus reducing the amount of land that can be put into agricultural production.
Some of the ways by which problems of land tenure can be solved include education of rural communities on use of land. Government through the Land Use Decree of 1978 has attempted to minimise the problem of land tenure. Though the decree confers the right and ownership of land on the people, the government holds the land so that those who wish to use it can apply for and obtain the right of occupancy. The spirit behind the decree is to transfer land from the people who cannot use or develop it to those who can do so. This will encourage commercialisation of agriculture and thus result in an increase in agricultural output. It is however doubtful if the land use decree has achieved the objectives it was set up for.
2) Inadequate Provision of Basic Amenities: Basic amenities include the provision of health care services, electricity, pipe borne water etc. Able men and women desert the rural areas and go to urban areas in an effort to secure unavailable office and factory jobs. These people, if they have been provided with such amenities, could have stayed in the rural areas and taken up farming as a business. The absence of these amenities does not encourage entrepreneurs to site industries (Agro-allied industries)in the rural areas which can lead to rapid development in agriculture and rural economy of the inhabitants.
Young people of nowadays prefer to look for menial jobs in cities rather than take up farming in rural areas where there are no basic amenities. A careful look at the farmers in the rural areas reveals that majority of them are old. If the trend of exodus of young people from the rural areas continues, agricultural productivity would be greatly lowered. In order to prevent this happening, the government is diverting its attention to ways and means of solving the problems associated with the provision of basic amenities. The Directorate of Foods, Roads and Rural Infrastructure (DFRRI) made frantic efforts to see that the standard of living in rural areas was high enough to encourage young men and women to live and work in these areas.
3) Finance: Agriculture in Nigeria is predominantly in the hands of farmers that produce on small scale (subsistence farmers). As a result of their low income from low productivity, they are unable to have enough money to expand their farmland holdings. These subsistence farmers are poor, but, given the opportunity to have loans from financial institutions without the usual hindrance of providing collateral security, they can produce enough food for the populace. But unfortunately, many farmers that were given loans in the past used the money for unproductive purposes instead of using it on their farms.
The banks were unable to collect their loans back since the farmers were not able to pay and this attitude discouraged the banks from giving loans to more farmers.
Also, agriculture being a profession that involves a lot of risks, such as unfavourable weather conditions, does not encourage investors to finance agriculture.
The problem of agricultural financing is being gradually overcome through the special agricultural finance schemes embarked upon by the government.
4) The Poor Transportation Network: The rural areas produce more than 90 percent of agricultural products in Nigeria. Unfortunately, the roads linking the rural areas to their urban counterparts are either in a state of total disrepair or non-existent. Some of the rural areas have become isolated and forgotten because of inaccessibility. Most of the agricultural products cannot be conveyed to the market places, especially the highly perishable ones like tomatoes, pepper and vegetable which need to be disposed of quickly.
Only a very small proportion of the farm produce is conveyed to the market by the women and children carrying the farm products on their heads. When vehicles are used, the cost of transportation is so high that the price demanded for the farm produce is usually beyond what consumers can afford.
New roads are however being constructed while bad ones are being rehabilitated by the federal government in an attempt to link the rural areas with the urban centres. These roads will greatly facilitate the movement of people from place to place as well as the conveyance of food and other farm inputs to and from the farms. The efforts of the Directorate of Food, Roads and Rural Infrastructure (DFRRI) Petroleum Trust Fund (PTF) were commendable.
5) Lack of Adequate Storage and Processing Facilities: Nigeria is naturally blessed with abundant fertile land on which most crops grow well. The use of improved crop varieties and other technological innovations usually result in increased productivity. And because crop production is seasonal, there is usually a slump in the market of the particular crop being harvested.
In most cases, storage facilities are not available and where they are available, adequate care is not taken to maintain them in good condition which will facilitate their use for long period of time.
Processing industries are much more expensive to be set up by individual farmers. Most processing plants in Nigeria often close shop after a few years of use due to lack of raw materials which are only produced at specific seasons of the year. Lack of spare parts and/or qualified operators also result in short life.
The Stored Products Research Institute of Nigeria is looking into ways and means of storing agricultural products in Nigeria. Farmers can also come together as co-operative societies to be able to purchase and maintain good quality processing plants.
6) Low Level of Agricultural Education and Extension: Most farmers in Nigeria are illiterates who can neither read nor write. As a result, it is very difficult to educate them on new methods of farming. Although a number of farmers possess radios, some agricultural education programmes are relayed during the day when the farmers are on their farms and thus, cannot benefit from the message. Extension workers are very few and their work is greatly hampered by lack of access roads. Owing to lack of adequate contact between the farmer and the extension worker, most farmers have tried to adopt new methods of farming wrongly either by not following the instructions at all or by following them wrongly. The results have been worse than not using the new method. This kind of situation has often led to total disapproval of innovative "ideas that can be of benefit to the farmers. Fortunately, the younger farmers of nowadays are mostly literate and the government is doing a lot to make the work of the extension workers less difficult by providing the necessary inputs and infrastructural facilities.
7) Inadequacy of Tools and Machinery: Farm tools used by local farmers are crude and less productive e.g. cutlass and hoes. These implements require much effort and little output is obtained at the end. This is one of the reasons why young people run away from farming.
To combat this problem, energy-saving tools and machines are now available for most of the farm operations. The hoe is being replaced by plough and ridgers. Weeding can be done mechanically while planting and harvesting can be done using mechanical planters and harvesters respectively. Although these machines and implements are expensive, local farmers can form unions or cooperatives to purchase and use them as a group.
8) Shortage of farm Inputs: These include new improved seeds, fertilizers, insecticides, herbicides, farm labour and so on. In modern day agricultural practice, all these inputs are necessary in order to maximise profit.
The problems associated with farm inputs can be grouped under three headings, viz: unavailability of these farm inputs; high cost of procurement when and where available; and poor technical know-how to lack of adequate knowledge on the utilization of the inputs. As regards unavailability, the farmers cannot readily obtain the necessary inputs at the nearby markets. They have to travel for long distances before they can buy modern farm inputs such as fertilizers and agro chemicals. The Agricultural Development Projects (ADPs) made efforts to solve this problem by establishing Farm Service Centres in selected places.
Secondly, these inputs are expensive. This is due to the fact that they are generally improved items and the costs of purchase (foreign exchange payment) as well as transformation are high. Government has therefore come to the aid of farmers by introducing farm input subsidy scheme.
Lastly the farmers do not know how to utilize these inputs to their full advantages. This is due to their low level of education among others. Government extension services are trying to each farmer how to use these inputs efficiently and profitability.
Agricultural Laws and Reforms
The Roles of Government in the Development of Agriculture
Agriculture is the mainstay of the Nigerian economy and other West African countries. Agricultural production in most developing countries is relatively low, when compared with developed countries. To safeguard this situation, the governments of various countries therefore control or direct ministries of agriculture. The government of each country introduces policies, programmes and regulations which aim at increasing agricultural credit, subsidies, research and plant quarantine service, establish farm settlement schemes and supply vaccines to farmers.
Agricultural policies: Agricultural policies vary from one country to another. Generally all such policies have the same goals and are directed to enhance increased agricultural production. The basic objectives agricultural policies include the following:
(a) To increase the quantity of suitable food crops which can be produced in order to meet the demand and changing tastes of the ever-growing population.
(b) To increase the quality and efficiency of producing the major export crop as demanded by the world.
(c) To provide employment opportunities through the establishment of large farms.
(d) To supply the essential raw materials which are vital to the development of local industries.
(e) To increase the production of livestock so as to supply animal protein in diets and make available livestock products in the markets at reduced cost.
(f) To apply mechanization in agricultural production for increased out and more income to farmers
(g) To find lasting solution to the problems of agricultural development, through the establishment of research centres which will work on livestock improvement, soil conservation and crop management.
Programme Planning
After the government has stated its policies, it then draws up a programme for their successful execution. A programme may be regarded as a project of what is to be carried out in the future. A plan is defined as an organisation of goals and the method, for achieving these goals.
Some of the major government programmes for developing agriculture in Nigeria include the following:
(i) Extension Services/ Agricultural Irrigation
(ii) Loan and Credit Scheme
(iii) Subsidies
(iv) Farm Settlement Schemes
(v) Oil Palm Planting Scheme
(vi) Cocoa Rehabilitation Scheme
(vii) Operation Feed the Nation
(viii) Fertilizer Application Scheme
(ix) The Green Revolution
(x) River Basin Authority Scheme
(xi) Agricultural Development Project Schemes
Agricultural Regulations
Agricultural regulations are rules made by the government in order to control agricultural activities. These regulations are meant for farmers to adopt and they vary from country to country depending on the existing socio-economic conditions of a particular region. The basic aims of agricultural regulations include the following:
a) To maintain high-quality standards of farm produce. .
b) To control diseases, pests, weeds and erosion.
c) To conserve and protect the natural resources from undue exploitation.
In Nigeria, for example, it is a criminal offence for unauthorized persons to tress pass into forest reserves to fell trees, hunt or establish personal farms. This regulation is aimed at protecting the forest and wildlife. This will enhance systematic exploitation of the forest.
Also it is an offence to set fire to savannah lands. This is due to the fact" that burning destroys economic trees and animals, and can, result in soil erosion and loss of soil fertility. It is also an offence for any person to use chemicals killing fish in water. This is because such chemicals can be poisonous to human beings as well, and could result in death.
Agricultural Education
This has the following advantages:
1) Education is important factor for growth and development.
2) It involves the acquisition of knowledge and its application to the solution for human problems.
3) Education and training provide the farmer with suitable skills which can be applied to increase his performance.
4) It improves the efficiency of labour and management
5) It encourages people to adopt new ideas rather than to superstition and tradition.
6) It helps to enhance the geographical and occupational mobility of people, thus accelerating economic development.
Modern farming requires basic training so that agricultural principles and new techniques can be transferred into practical activity.
The aims of agricultural education are:
a) To educate farmers in order to increase their productive potentials.
b) To raise the social status of the farmer and farming as a business.
c) To develop in farmers the sense of responsibility and respect for hard work.
In Nigeria and other West African countries, the government encourages the teaching of agricultural science in primary schools, secondary schools, Teacher Training Colleges and the Universities. Schools of Agriculture have also been established to train young school leavers as Agricultural Assistants and Superintendents thus forming a group of extension agents whose responsibilities lie in carrying research findings to farmers in rural areas. The government also awards scholarship to undergraduates and postgraduates to study agriculture in the universities. On completion of their studies, they are deployed to various administrative posts to direct the field workers and to undertake research projects.
Research: In Nigeria, the government has spent huge sums of money to establish research institutes where varieties of crops and breed of livestock are practiced. These improved species of crops are usually high yielding disease resistant and they mature early. Research may be regarded as an advanced stage of study which is aimed at discovering what is hidden. There are two main types of research basic and applied research. In addition to these, research is also done by specialised government agencies including the following:
(i) The National Cereals Research Institute at Badeggi deal with food crops especially rice, maize and cowpeas.
(ii) The Cocoa Research Institute of Nigeria (CRIN) at Onigambari near Ibadan deals with kola, cocoa, and coffee,
(iii) The Nigerian Institute for Oil Palm Research in Benin specialises in Oil Palm,
(iv) The Nigerian Institute for Trypanosomiasis Research in Vom near Jos deals with research in animal diseases,
(v) The Rubber Research Institute of Nigeria at Benin specialises in rubber.
(vi) The" Rokupr Research Station in Sierra Leone specialises in rice research.
These various research centres devote their attention to discovering the most productive methods available. They carefully search out techniques, materials and practices from other regions, put them into test locally to find out their effectiveness and then modify them for adoption by farmers. They also carry out experiments aimed at developing new materials and practices which can make agriculture more productive and profitable.
Over the years these research centres have developed new and improved varieties of such crops like rice, maize, rubber, cocoa, as well as grasses and legumes. In addition, new improved breeds of livestock have been produced through introduction, selection and cross breeding. The results of these numerous researches are usually made available to farmers through the extension services divisions of the Ministries of Agriculture and Natural Resources.
Agricultural Extension
Extension education is basically awareness education programme brought to the rural area by agricultural extension agents at their homes or villages. The aims of agricultural extension include the following:
(a) To bring information to the farmer concerning new developments which can be applied to increase agricultural production, such as the use of fertilizer, improved breeds of livestock, improved crop varieties, animal feeds, pesticides, herbicides, fungicides and farm mechanization.
(b) To instruct farmers on new farming techniques such as the most ideal time of planting and harvesting, crop spacing, fertilizer application, drainage and irrigation, crop rotation, crop and livestock production and basic soil conservation principles.
(c) To teach farmers good farm management practices, efficient marketing channels, better processing, storage, grading and transportation of agricultural produce,
(d) To encourage leadership qualities and cooperative living among farmers and enable them adopt new ideas,
(e) To raise the social status of the farmer through basic health education.
Agricultural extension staffs do their work by visiting the farmers in their homes. They may also set up demonstration plots in conspicuous places for people to see and adopt. Information may also be supplied by the use of posters and handbills, radio, talks, film shows and lectures. Sometimes they may also organise annual farmers festival and agricultural shows. Extension agents also encourage the establishment of young farmers clubs in the schools and colleges by giving them both financial and material help.
Through these services, the government hopes to improve and increase agricultural productivity.
Agricultural Credits
Credit is a payable form of financial assistance given to farmers, with or-without interest to help them execute their farm operations more effectively. Credit can be in cash or kind. In order to achieve increased agricultural production, farmers require money to buy planting materials, fertilizers, herbicides, fungicides, livestock and livestock feeds, including money to buy farm machineries and pay labour wages.
Agricultural credits are usually provided by financial government agencies such as Agricultural Loans Bank, Agriculture Credit Co-operative and the Credit and Loans divisions of the Ministries of Agriculture.
In practice however, farmers usually find it difficult to obtain credits but the small-scale farmers cannot have easy access to loans. They are sometimes forced to look for other sources to raise money for their farming operations. The main sources, which are often available to the small-scale farmers, include private sources like loans from neighbours, friends, relatives, licensed money-lenders, merchants or produce buyers. Money lenders are not very suitable in providing loans for agricultural production, money lenders are not suitable in providing loans for agricultural production because they charge very high rates of interest. Merchants or produce buyers are sometimes willing to provide short term loans to farmers, but with the assurance that farmers, produce would be sold to them after and usually the rates offered are below the government approved prices. This may greatly reduce the income of farmers.
Agricultural Subsidies
The government also plays an important role in developing agriculture through the provision of subsidies. Subsidies are forms of assistance which are meat to help farmers meet specific needs. Generally, subsidies are often in kind or cash depending upon the types of subsidy and the system employed by the government. When a fertilizer subsidy is given to farmers to increase production, the objective is to induce farmers to buy fertilizers when they realise that it can increase yield. In some parts, like the South West, there are subsidy schemes for chemicals, which are used for the control of cocoa diseases. Thus, these subsidies help to solve the problems of finance in agricultural production. They reduce the farmer’s cost of production and also lower the cost of living of the common man. The objective of subsidy is to ensure an adequate supply of farm products at home. Producers are guaranteed higher prices and which act as incentive for increased supplies while at the same time keeping down the consumer prices for agricultural produce.
Vaccines
The effects of most disease causing organisms can be avoided by using preventive methods. One of such methods is to immunise animals against diseases by the use of vaccines. Vaccines weakened germs which stimulate the body to develop immunity. The government provides vaccines to farmers in order to increase the quality and quantity of their livestock by keeping farm animals healthy. A good vaccination programme is an important aspect of animal husbandry especially, in the young stock. This prevents losses which often occur as a result of disease outbreaks. Diseases in animals can he caused by bacteria, fungi, viruses, parasites and other metabolic disorders.
'The provision of vaccines for use on animals including humans is done only by the government through the Department of Health or the Veterinary Division of the Ministry of Agriculture and Natural Resources. Vaccines are usually provided free of charge or at government subsidised prices.
Farm Settlement Schemes
The government also establishes farm settlement schemes in order to increase and improve agricultural production. The first farm settlement was established in 1959 in the Western States. It was aimed at improving the .system of farming among peasant farmers. Before independence there were no define programmes aimed at improving the standard of farming. But after independence this attitude changed and farm settlement were established.
The first farm settlements were established as models for other parts of the country. The main objectives in establishing farm settlements include the following:
(i) To develop a modern system of farming so as to attract youths into farming as a noble profession.
(ii) To bring about rural development and to arrest the drift of youths to the urban areas in search of white collar jobs.
(iii) To help solve the problem of unemployment among school leavers.
(iv) To develop an extension approach which will increasingly accelerate agricultural development
(v) To discourage the existing land tenure system.
(vi) To bring about a revolution in the methods of agricultural production.
Young school leavers are selected and sent for training for two years in farm institutes where they receive instructions in general agriculture. After training each farm settler is given an area of land which is large enough to sustain the settler and his family. The settlers are also equipped with modern farm tools and supervised by government agricultural officers posted to the settlements. Each settler is provided WIth a comfortable house while the settlement is provided with social amenities like pipe-borne water, electricity and recreational facilities. The settlers are usually supervised and have easy access to technical advice, credit for establishing and maintaining their holdings as well as improved livestock and planting materials. The settlers also receive help from the supporting services sections of the government. They provide tractors for hire and may assist farmers to procure essential farm inputs. Also, they provide storage facilities and marketing facilities for the settlers. Good access roads are also constructed in the settlement.
Operation Feed the Nation (OFN)
Food is an essential factor to human existence, and without it, man can hardly survive. Nigeria is essentially an agricultural country, and before the era of the oil-boom, over 80% of the working population were engaged in the production of major agricultural cash and food crops. But soon after the attainment of independence, the country witnessed a frightening drift of the rural population to the urban centres in search of white collar Jobs. This situation, created labour shortage on the farm-lands, with the consequent decline in agricultural production. It soon became crucially important to halt the declining trend in agricultural production. Thus, one of the main tasks of the Government of the Late General Murtala Muhammed immediately on assuming office in 1975 was to embark on large scale importation of food items to meet the country’s immediate needs. He also introduce a number of fiscal and policy measures which aimed at increasing agricultural production. Moreover, restrictions such as price control, were imposed to check the increasing cost of living.
All these measures had immediate and positive results. At least, they, among other things, made food items available at reasonable costs. But unfortunately, they had one major defect – they were too short-lived, and were merely stop-gap measure.
The leadership of General Obasanjo introduced the Operation Feed the Nation (OFN). The OFN succeeded in awakening the interest of many Nigerians in Agriculture. The programme gave political backing and prestige to farming. Unfortunately, the Operation Feed the Nation Programme was not geared to meeting the needs of the small farmer as should have been the case. It was directed at the wrong channel. The National and State Committees, formed to see to the programme smooth execution and success failed to include farmers from the grass-roots. Besides, the entire people who participated in the programme were very few. Thus, the OFN failed at increasing the nation's food production significantly.
The Green Revolution.
The succeeding civilian administration of President Shehu Shagari came into power and also emphasized, the need for national self sufficiency in food production. The need for Nigerians to feed themselves rather than depend on imported food was a priority of the administration articulated through the concept of the Green Revolution. In fulfilment of this objective, the Government launched the Green Revolution Programme, on April 14, 1980. The term Green Revolution means agricultural revolution, or, a call for increased agricultural production through a radical modernisation of the nations agriculture, provision of inputs, such as improved seeds, fertilizer, pesticides, herbicides, irrigation, agricultural credits, appropriate mechanisation, agro- service centres, improved markets, improved pricing policy, efficient transport and communication systems.
One of the most effective ways of keeping the urge to import food at bay was through government's direct participation in agricultural production. This was possible by way of equity shares in commercial agricultural ventures with the Private sector. Companies which produce on a large scale were given some incentives including;
(i) Income tax relief to pioneer enterprises
(ii) Duty-free importation of farm machinery.
(iii) Additional investment allowance of 10% provision for carrying forward losses.
The Nigerian Agricultural and Co-operative Bank was established by the government to finance all aspects of agricultural production as well as provision of processing and storage facilities. The government also increased its lending capacity in order to help solve the problems of short and medium term finance in the agricultural sector.
In order to obtain higher levels of production the government provided fanners .with inputs. This was made possible by way of embarking on certain programmes namely, National Accelerated Food Production and the Seed Multiplication Centres which provided seeds and seedlings to farmers Fertilizers and pesticides were also provided to farmers at subsidized rates. In addition, grazing resource. water, animal feeds, breeding stock, fishing gears and nets were made available to farmers. The Green Revolution also aimed at improving the social amenities in the rural areas through the provision of infrastructural facilities such as water, electricity, good feeders roads, education, and. health services in order to improve the quality of rural life.
As a further boost to the Green Revolution efforts, agricultural mechanization was also intensified to reduce the tedium of farm operations and the unattractiveness of farming as an occupation. The Federal Government set up tractors-hiring schemes whereby it purchased tractors for re-sale at subsidised price or for hire to farmers who had no money to buy them.
River Basin Authorities were established by the Government to develop the water resources of the country. The River Basin Authorities were established in each state the Federation among which include the Sokoto River Basin Authority, Lake Chad River Basin Authority and the Cross River Basin Authority, etc. The Government provided huge sums of money to these authorities for number of activities including the development of irrigation facilities involving the construction of dams and bore-holes to help irrigated lands since the River Basin Authorities were created to exploit the country’s major river farm for agricultural production, they are expected to undertake schemes for the development of underground water resources, control of floods and erosion and for water shed management. They are also to develop irrigation schemes for crop and livestock production, and to lease he irrigated land to farmers to recognised farmers or recognised farmer organisations.
Agricultural Development Project (ADP)
Centred on the Green Revolution Programme are the Integrated Agricultural Development Projects (ADP), which were initiated in 1975 and partially financed by the World Bank. The central theme of these projects is the transfer of already developed crop and mechanical technologies to the majority of farmers by extension workers who are based at the village farm services centres. In addition, the distribution of farm inputs such as fertilizers, also take place through the farm centres.
Land Tenure
Land Tenure refers to the economic, legal and political arrangement regarding the ownership and management of land and it’s resources.
The Land tenure system in Nigeria varies with tribe, clan state, or community. It can be broadly classified into 4 as follows-
(1) Tenure based on communal ownership
(2) Tenure based on individual inheritance or free-hold land ownership
(3) Lease-hold tenure or land-lord tenancy arrangement.
(4) State or government ownership of land.
Farm Insurance Scheme
Insurance is the payment of a sum of money by one person to another on the understanding that in certain specified circumstances, any losses suffered by the first person will be made good by the second. The second person, or the insurance company as it usually is, is able to pay compensation because he has collected sums of money from a number of people, and will have to make payments to only those who suffer the specified losses. The regular instalment made to an insurance company is called insurance premium.
The misfortunes, and indeed the uncertainties, against which the farmer may cover himself by insurance are many, and It is a matter of prudent assessment in any given instance to decide where the insurance is really necessary and where risk should be left uncovered. Such a decision will rest upon a judgement of the likelihood of the particular accident ever happening, an assessment of the probale cost of repairing damage if it occurs, the size of the annual premium to insure against the eventuality, the size of the annual income out of which the premium is to be paid and which may be available on the premium or on the cost of repairing the damage or on the cost of if is not met out of insurance monies.
In farm insurance it is necessary to consider some of the risks which may be covered by the farmer, whether a tenant or an owner occupier, in respect of his agricultural business.
Agricultural Co-operatives
These are business enterprises or organisations owned and controlled by the members and they aim at rendering services for the mutual benefit of all members. They are self-reliant, self controlling and self-sustaining organisations.
Importance of Agricultural Co-operatives
1. They enable farmers to obtain loans easier and better terms than they can from commercial banks.
2. They facilitate easy marketing of agricultural products
3. They increase the output of goods e.g. Groundnut producers’ co-operatives encourage members to produce more and such as the country exports more and earns more foreign exchange.
4. Thrift and credit cooperatives encourage savings by their members and provide loans to members at low interest rate .
5. Agricultural cooperatives help increase the income of their members.
6. They provide capital for economic development and capital investment in other ventures.
7. The members can establish co-operative banks which help economic development.
Agricultural Economics
Factors of Production
There are four main factors employed in production, these are land, labour, capital and entrepreneur or management.
1) Land: As a factor of production, land includes all the gifts of nature excluding all man made items. These include water, soils, minerals present in the soil, air e.t.c.
The productivity of land depends on its inherent qualities and the nature of other inputs which the farmer adds like fertilizer. The value of land depends on where it is found and the purpose for which it is used. For example, land in the desert region is of lower value than that in the forest/savanna zone. And land used for agriculture might be lower in price compared to the ones used for sitting industries.
Land is measured in hectares (ha.) or acres. Available quantity of land to every nation is fixed and it is about 98.4 square kilometres for Nigeria and this has remained like that since Nigeria became a nation. About 40 percent of Nigerian land is put into agriculture. That is, land in use differs from land available. Some parts of Nigerian land are covered with water, some parts are in the desert lying idle while some are put into building. The land being put into agriculture can be increased by reclamation of those parts covered with water; desert area can be irrigated to make it useful but this is very costly. The reward for land is rent collected from tenants.
2) Labour: In production, this refers to human effort put into agriculture and not the population of people employed for farming. It is measured in mandays. In Nigerian agriculture, it is the farmers family that provides the bulk of the farm labour force. Especially among the peasant farmers, hired labour is of little importance. However, agriculture on a large scale requires hired labour. Communal labour is often used as an alternative to hired labour, and payment for such labour is usually in foods and drinks unlike hired labour where money is paid without labour, there will be no activity on the farm. The land cannot till itself. When machines are to be used, human labour is needed to drive the engine.
Labour should be readily available at the right time. For example, if labour is not available during harvesting period, it can result in over maturing of crops and loss of crops to disease and pest attack. Highly perishable crops quickly become rotten and unsuitable for consumption. The value of such crops is reduced in the market. The reward for labour is wage/salary.
3) Capital: Unlike land, capital includes all man made items used in production. Capital does not mean money only, but it includes farm buildings, seeds, fertilizers, chemicals, hoes, cutlasses, tractors e.t.c. In actual fact, money is used to acquire capital i.e. money
In the absence of capital, farming cannot be practised because the labourers cannot use their fingers to dig the ground, neither can they plant stones as crops.
The low labour productivity in the developing world is very much associated with low capacity of available capital.
Capital can be divided into two depending on their life span. Thus we have mono-period capital; that is, capital resource that can be put into production in a single discrete production period e.g. animal feeds, seeds, fertilizer, drugs for livestock e.t.c.
Poly-period capital can be used over several months or for very long period of time e.g. roads, farm buildings, tractors, incubators e.t.c. -
The reward for capital is interest.
4) Management: Otherwise called entrepreneur, is the one who takes the risk to invest in a business. He controls all farm operations and has the final say in all decisions on the business. Management can refer to a person or group of people that organise, coordinate and control the use of other factors of production.
Management takes decisions as to the number of labourers to be employed, type of buildings to be constructed, what to produce, how to produce and when to produce i.e. whether to start in June or July and so on.
If there is need for credit facility, it is the management that will make arrangement as to whether to go for loans in banks, money lenders or use available profit from the farm.
The profitability of any farm business depends on the management ability. That is why in areas with similar characteristics-and same resources there can still be different output. This reflects the management ability of the manager.
The reward for management is profit.
Functions of a Farm Manager
1) He takes decision on what to produce, how and when to produce.
2) He takes credit for the success of the farm business and takes the blame for
the failure.
3) He determines the level of pay i.e. salary to be paid to labourers.
4) He sets up control to measure the achievement of farm objectives i.e.
Whether the farm is running at a loss or not.
5) He makes sure that farm operations start at the normal time.
Agricultural Financing
Sources of Farm Finance
1) Agricultural Banks: These are special types of banks that help in financing agriculture by giving out loans to farmers with little or no interest paid in return. They can also help farmers to monitor the affairs of the farm so as to realise a lot of profits, e.g. Cooperative Banks in Nigeria.
2) Commercial Banks: They also give loans to farmers reluctantly and most of the time, their conditions are too difficult to meet for the farmers. They charge high interest rates and because agriculture involves a lot of risks and uncertainties which might not allow the farmers to pay up in time, most Commercial Banks are discouraged from financing agriculture.
3) Cooperative Societies: Groups of farmers come together to help each other both morally and financially. They contribute money to purchase some modern farm inputs, and they are more easily given loans than individuals. Such inputs include seeds, fertilizers, chemicals etc. Farmers' produce are sold through their cooperative societies.
4) Money Lenders: These are the people who lend out their money on condition that opart of the farm produce is given to them as interest. They can also charge a percentage of the money as interest. During unfavourable weather conditions or when farmers are unable to pay up, these money lenders cause embarrassments like abusing the farmer, and disturbing his peace.
5) Individuals: Individuals can donate money to be used on the farm. This is common on family farms where each member contributes for the financing of the farm business.
6) Savings and Thrift Societies: Members contribute money either monthly, yearly or at the end of each season to be taken care of by the society. And at the end of an agreed period, the money is paid back to the members for their use mainly on the farms. On the other hand a group of people can be contributing to help each other every month or yearly, just like Ajo in Yoruba land.
(7) Self financing: The farmer himself provides the money to finance the project. He could use his personal savings or money got from the sale of the previous crops.
Agricultural Activities
Agriculture involves the cultivation of crops and the rearing of animals for the purpose of producing food and materials, and making clothes and other essential things which people need. The methods of crop cultivation and animal rearing vary considerably from one region to another.
Cultivation of Crops
Cultivation is of two types: subsistence and commercial
1) Extensive cultivation or shifting cultivation: this is a primitive method which does not involve the use of manure or. fertiliser or the plough. The land is cultivated for only one or two years after which it is abandoned because soil fertility falls
2) Intensive cultivation: this is the cultivation of the same land year after year by a farmer and his family, for food crops which they themselves use. The land is cultivated permanently which is made possible by the use of manure-, fertilisers and the plough and sometimes by the system of fallowing and rotation.
Commercial cultivation: This involves the cultivation of crops for sale. Farms may be small with the emphasis on high yields per unit area, or they may be large with the emphasis on mechanised farming and often on the cultivation of only one crop these farms have low yields per unit area. The latter is called extensive farming.
Rearing Animals
1) Nomadic herding: animal wander over a large area, living on what grass or other plants are available is often called pastoral nomadism.
2) Commercial livestock farming: animals are confined to specific areas, and crops are planted to provide them with food, especially in the winter.
Extractive Industries
Processing Industries
These industries are concerned with the removal of natural products from the ground (on it or below it) and from the sea, and they include wining, quarrying, forestry and fishing.
Mining This refers to the extraction of mineral ores and oil from the earth's crust. When extracted, minerals cannot be replaced, and therefore mineral reserves in the earth's crust will eventually decrease. Throughout history, man has always been attracted to settle and work in areas where mineral wealth has existed.
Mining methods are varied, depending on the location of the minerals, the depth at which they exist, and the level of technological skill available. Shaft mining is practised in places where minerals occur deep in the earth's crust, while open-pit (open-cast) mining, using either dredges or hydraulic pumps, or some other method, is practised where minerals occur at, or near the earth's surface.
Quarrying this is similar to mining, especially to open-cast mining, but it differs in that the rocks extracted are generally of lower value. These rocks are used for building and for road construction. All rock deposits which are quarried lie near to the surface and usually the quarries are located near to the populated areas which use the products of the quarries. Commonly quarried rocks are granite, slate, sandstone limestone and gravels.
Forestry This involves the felling of trees, whose wood is used in industry. Most coniferous trees are softwoods and their wood is used mainly for making matches and paper pulp. Deciduous trees are usually hardwoods and their wood is usually used for construction work.
Fishing Although the fishing industries of the world are mainly related to the oceans and seas, fishing in rivers, and in lakes geared to fish breeding, is becoming important, especially in many Asian countries. Careful control must be exercised in fishing and forestry to ensure that the rate at which the produce is extracted is balanced by its replacement, e.g. the replanting of new trees to balance those that have been felled. This control is exercised in several countries. Controls to prevent over-fishing are also practised by most of the countries which have large fishing industries.
Agricultural a Case Study of Cocoa Cultivation
Along with groundnuts and palm oil, cocoa was some decades past, one of the core exports crops in Nigeria. Cocoa provided the vital foreign exchange that oiled the wheels of the economy before oil was discovered in commercial quantities and petro-dollars relegated agriculture, and thus cocoa, to policy insignificance.
Long years of neglect of the crop and, for the little quantity that was being produced, low pricing, combined to lead to its eventual demise, virtually. In recent times, however stakeholders in cocoa production have been brainstorming on how to revive the crop’s commercial glory. In 2005, the federal government kicked off the first National Cocoa Day in Ibadan, the Oyo State capital. The initiative aims at a concerted effort at reviving the massive production of the crop in Nigeria. From 8 to 10 March 2006 in Calabar, Cross River State, the second National Cocoa Day colourfully held, with farmers, politicians, students, beverage manufacturers and other players in cocoa farming and application gathered together from some 14 states regarded as top stakeholders in the golden crop.
Cocoa, with the biological name, theobroma cocoa, originated in the banks of the Amazon River in Central America where it grew wild. From there it was domesticated as a crop by the Spaniards in the 16th century. The British brought it to Britain and France in the 17th Century and later to the Island of Sao Tome and Principe. From there, the crop migrated to Nigeria.
The first known person to cultivate the plant in Nigeria was the late Chief Squiss Ibanigo in Opobo, River State. It was from here the crop was introduced to the south-western State of Osun, Ogun, Ondo, Oyo and Ekiti, and to Edo State in the mid-west. The crop thrived in these areas because of the favourable ecological condition of frequent rainfall. The well-drained soil in these areas also contains iron oxide and rich clay which help in holding quantities of water conducive for the crop’s growth.
Extensive farming of cocoa later extended to states like Cross River, Akwa Ibom, Abia, Delta and Adamawa, which also possess the same climatic condition for the crop to thrive. In Cross River, for example, in 13 out of the 18 council areas in the State, like Etung Ikom, Boki, Ogoja, Akampa, Odukpani, Obudu, Obanmiku and Odukpani Akpabuyo, cocoa farming spins valuable income for the average family. Even when the crop was abandoned by farmers in many states, it still enjoyed large acreage of cultivation in Cross River. The State is considered one of the leading cocoa producers in the country, a status that accorded it the privilege to host the second Cocoa Day.
For a long time after the introduction of the crop into Nigeria, its cultivation was at subsistence level. But between 1910 and 1972, the production witnessed a steady rise, starting from a modest 3,000 metric tonnes in 1910 to 410,000 metric tonnes in 1974. As production boomed, agencies like produce boards and cocoa research institute were established with aim of assisting the farmers and market for their produce or store the excess. Government also assisted farmers on improved crop cultivation through research workshops and seminars.
But the sudden emergency of crude oil which was easier to exploit and faster to dispose of, unlike cocoa which has to be pampered over a gestation period of five to eight years, saw cocoa relegated to the sidelines.
The problem of cocoa was compounded because domestic consumption was limited, making it significantly an export crop. Britain, the destination point, determined the price of the crop, and almost always paid ridiculous prices for it. With the government caring less, it scrapped the produce boards that provided little succour to the farmers, and re-search institutes were neglected. Old cocoa trees were never replaced, the pods were no longer treated with insecticides and the farms were allowed to be over-grown with weeds. Consequently, output kept dwindling and eventually ended up in trickles.
But two years ago, the federal government formed the National Cocoa Development Committee, under the headship of Erelu Obada, the Osun State Deputy Governor, with the mandate to re-energise interest in the cultivation of the crop. Free and improved seedlings, as well as subsidized insecticides, were supplied to farmers who indicated interest in cultivating the crop.
The theme of last year’s event was: “Have you had your Cocoa today” President Olusegun Obadanjo personally addressed the gathering. The three-day programme witnessed an exhibition of cocoa products, a symposium, drama sketches and presentation by students. In his address, president Obasanjo remarked that, “in the not too distant past, cocoa production had declined significantly as a result of the shift of attention from agricultural production to petroleum, which we all know as a wasting asset,” It was against this background, he noted, that government set up the National Cocoa Development Committee, NCDC, to articulate projects and programmes that would ensure increased cocoa production. “If the agricultural sector is carefully planned and harnessed and government policies at all levels are well implemented, the sector will lend itself to addressing the twin challenges of poverty and unemployment” he said.
As government’s contribution to the rebirth of crop, it is providing high yielding and early maturing seedlings of cocoa variety to farmers free. “And as for the price that is fixed by Britain which produces no cocoa, I have invited all African cocoa summit in Abuja to discuss all aspects of the cocoa economy, the president informed. This is to ensure that farmers get remunerative prices for their labour. Cocoa has been diversified to produce several products such as cocoa garri, cocoa ogi, chocolate, cocoa butter, cocoa feeds, cocoa custard and cocoa wine. If current efforts to rejuvenate the production of the crops go far enough, as Obada put it, “Nigeria will soon witness the production of cocoa that that will surpass that of Ivory Coast, which is the highest cocoa production nation in the world.”
Petroleum and Natural Gas
Petroleum in its natural state is called crude oil. It is a compound of hydrogen and carbon and is thought to have formed from the decomposition of minutes marine organisms which are collected in the sediments on the floors of some seas. During and after the formation of the oil, earth movement probably forced the oil out of the sediments into porous sedimentary rocks such as sandstone and limestone. Folding sometimes occurred and sometimes the oil-bearing rock became sandwiched between layers of impermeable rocks which prevented the oil from seeping away. Oil trapped in this way slowly moved along the sedimentary rocks and collected in pools in anticlines, or in fault traps. Natural gas and water also occur in oil-bearing rocks. The water collects below the oil, and the gas collects above the oil. Sometimes only gas occurs, and if the gas deposits are large enough they are commercially worked, as in the North Sea between Britain and western Europe.
Case Study Oil in the Middle East
The Middle East is one of the world’s major oil producers. In 1991, it produced about 26 per cent of the world’s output of 3132 million tonnes. There are four main producing areas in the Middle East:
1. Saudi Arabia with its main field at Abqaie;
2. Kuwait where oil was first drilled in 1946;
3. Iraq with important fields at Mosul, Basra and Kirkuk;
4. Iraq which is the oldest oil-producing country in the Middle east.
Smaller, but still important producers, are Abu Dhabi, Qatar, Babrain and Oman.
The Geographical Setting
The Middle east is located in one of the world’s most extensive desert regions, and until the discovery of oil there, the majority of the people, most of whom are Arabs, practised nomadic paternalism and related activites. Agriculture was also practised but only in the lowlands watered by rivers such as the Tigris and Euphrates. Since oil was discovered, first in Iran and later in many other parts of the region, the way of life for many of the different peoples has changed appreciably. Money from the sales of oil has enabled roads and irrigation works to be built, education to be developed, and industries to be set up.
The Extraction of Oil From the Ground
When oil-bearing rocks are located and it has
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