DETERMINANTS OF FARMLAND MARKET PARTICIPATION AMONG SMALLHOLDER FARMERS IN OGUN STATE, NIGERIA.

Abstract

Farmland access remains a key constraint for smallholder farmers in Nigeria, with increasing reliance on the land rental market. This study investigates the determinants of farmland market participation among smallholder farmers in Ogun State across different land arrangement types, socio-economic characteristics, and participation outcomes. Primary data from 150 respondents were analyzed using descriptive statistics, multinomial logistic regression, bivariate logit model, and a problem ranking index. Result of the socio-economic analysis revealed that most farmers were above 40 years, with farming as a secondary occupation for many. Participation in the rental market was notable, with 58% renting in land and 41.3% renting out. Multinomial regression results showed that education significantly reduced the likelihood of choosing ownership (p < 0.001), communal (p = 0.056), and sharecropping (p = 0.009). Farm size positively influenced selection of ownership (B = 0.81, p = 0.001) and communal (B = 1.11, p = 0.004) arrangements. Bivariate logit estimates showed land size significantly reduced the likelihood of renting in (B = -0.84, p = 0.012) but increased renting out (B = 1.02, p = 0.018). Household size increased rent-in participation (B = 0.56, p = 0.031), whereas age significantly influenced rent-out decisions (B = 0.44, p = 0.022). The significant correlation coefficient (rho = 0.411, p = 0.008) indicated interdependence between both decisions. The findings reveal a dynamic farmland market shaped by socio-economic pressures and land scarcity. Land tenure arrangements, farmers' cooperatives, and land information services need to be strengthened to improve land access and rural productivity.