The Effect of Groundnut Production and Marketing on Poverty Reduction in Buruku Local Government of Benue State : A Logistic Analysis

This study examines “the effect of groundnut production and marketing on poverty reduction in Benue state; a case study of Buruku Local Government Area. Various literatures were reviewed on the effect of groundnut production and marketing on poverty reduction. Vicious cycle of poverty and unbalanced growth theory were reviewed in the study. A survey design was used to obtain cross-sectional data through questionnaires, focused group discussions (FGDs) and oral interviews. The research adopted the multistage random and purposive sampling techniques and obtained a sample size of 340. The study used descriptive statistical tools, Foster-Greer-Thorbecke (FGT) Index and logistic regression to analyze the data for this research. The study revealed that, the annual income and consumption expenditure of the respondents improved drastically during groundnut production and marketing. The logistic regression revealed that, groundnut production has significant effect on poverty reduction in Buruku Local Government Area of Benue state. The study also revealed the factors militating against groundnut production as lack of capital and extension services, poor roads, inadequate technical knowledge, Low seasonal prices and high price fluctuations, Low returns from small-scale production of groundnut among others. The study recommended that, Government and Institutions should strengthen extension services to deliver improved technologies to the farmers and farmers should source for loans through cooperatives, banks and other available sources at low charges so as to improve their capital base and a policy strategy should be adopted that eschews the long run neglect of rural infrastructural development in Benue state and Nigeria at large