Estimating determinants of market participation and its impact on the income of under-utilized vegetable farmers in Nigeria

Abstract

Under-utilized indigenous vegetables (UIVs) offer considerable potential for improving rural livelihoods in Nigeria due to their nutritional benefits, climate resilience, and cultural importance. Despite these advantages, their contribution to household welfare remains limited because of weak integration into formal markets. In the context of increasing emphasis on inclusive agricultural commercialization, market participation represents an important pathway for enhancing the welfare of smallholder farmers. This study investigates the determinants and income effects of market participation among smallholder farmers cultivating UIVs in Southwestern Nigeria. Primary data were collected from randomly selected farmers participating in the Nigeria–Canada Under-recognized Vegetable Project (NiCanVeg) across multiple states and agro-ecological zones. A Linear Regression Model with Endogenous Treatment Effects (LRETEM) was employed to address selection bias and unobserved heterogeneity in estimating the impact of market participation on income. Descriptive findings indicate that market participants tend to be younger, more educated, and possess greater productive assets and savings than non-participants. Econometric results reveal that socioeconomic and institutional factors, including gender, age, education, asset ownership, livestock income, and cooperative membership, significantly influence market participation decisions. The findings further demonstrate that participation in markets exerts a positive and significant effect on farmers’ welfare outcomes. The study underscores the importance of strengthening market access mechanisms for smallholder farmers and recommends policies aimed at enhancing farmer cooperatives, improving access to market information, and promoting inclusive value chains to support the commercialization of UIVs in Nigeria.