Manuscript Number: 2785

Indian Journal of Ecology (2019) 46(1): 18-22 NAAS Rating: 4.96

Economic Analysis and Constraints of Irrigation by Dry Season Rice

Farmers in Ikwo Local Government Area of Ebonyi State, Nigeria

S.U. Nwibo, A.V. Eze1, C. Nwofoke, B.N. Mbam and G.N. Umeh
Department of Agricultural Economics, Management and Extension, Ebonyi State University Abakaliki
1
Department of Agribusiness Management and Trade, Kenyatta University, Nairobi
E-mail: sunwibo92@yahoo.com

Abstract: Imperfect markets or absence of markets for irrigation in developing countries such as Nigeria, particularly Ikwo Local Government
Area of Ebonyi State has undermined the level of agricultural activities going on in the area especially during the dry season. Hence, estimating
the economic value that farmers place on incremental changes in demand for irrigation has become vital in the process of deciding the
economic viability of new irrigation projects. The study adopted both random and purposive sampling techniques in collecting primary data
from 125 rice farmers with the aid of structured questionnaire guided by interview schedule in Ikwo Local Government Area of Ebonyi State,
Nigeria. The findings indicated: socio-economic, geographic, and productive factors greatly influenced the farmer's willingness to pay for
irrigation. The rice farmers are willing to pay for irrigation with an average of US $19 per 2.5 ha/year. The 85.9% of the total variation observed in
willingness to pay for irrigation was sufficiently explained by the independent variables included in the regression model. Educational
qualification, farming experience, farm size, distance of farm to the nearest market, access to credit, attitude towards payment for the
maintenance of supply irrigation and proximity to water sources were positively correlated with willingness of rice farmers to pay for irrigation.
The weak irrigation policy, lack of access to credit, water source, non-inclusion of farmers in irrigation scheme among others as the constraints
to rice farmers' willingness to pay for irrigation The study therefore recommends that rice farmers should be encouraged to form cooperative
society so as to access credit for establishment of small irrigation scheme for dry season rice production, government should develop workable
and feasible water scheme since the farmers are willing to pay for its sustainability.

Keywords: Economic value, Demand, Dry season farming, Irrigation, Willingness to pay

Over the years, rice production in Nigeria has on the
increase with an average of 300,000 tonnes in the 1990s to
over 4 million tonnes in the year 2013 (FAOSTAT 2015). Even
with this increase, the domestic demand of the burgeoning
population has not been met. The inability of local supply to
meet up with rice consumption needs of the populace has
resulted in high imports of rice. The phenomenal rise in
imports of 300,000 tonnes annually in recent times has
continued to drain the country of about N300 million annually
in foreign reserves- on the average (Uduma et al 2016). To
reduce the volume of rice imports and external shocks, and
stimulate local production, the Nigerian government over the
years has come up with various policy and programme
interventions aimed at boosting local production. Notable
among these interventions were: import restrictions, tariff
restriction, and inauguration of presidential taskforce on rice
in 1980, inputs subsidies and ban on imports 1986-1995
(Uduma et al 2016). In 2003 the Federal Government set up
the presidential initiative on rice production with the aim to
become self-sufficient in rice production. The objective was
to eliminate imports, generate exportable surplus and
enhance food security through the production of 6 million
tonnes of milled rice by the year 2005. A tariff of 100% was
imposed then on rice imports (Daramola 2005) and a levy of
10%. Effort to make the nation attain self-sufficient in rice
production was again renewed in 2010, culminating in the
formal launch of the rice transformation strategy under the
agricultural transformation agenda (ATA). The strategy was
to produce more paddy and industrial grade milled rice that
could compete with imported rice in the market.
Considering that Nigeria is well endowed with water and
land resources for irrigation farming, utilization of these
resources can close the demand supply gap of rice in the
country. A considerable increase in production is essential for
Nigeria to meet up with the growing demand considering its
fast growing population. However, the Nigerian rice irrigation
production has been left underdeveloped. Rice production
generally in Nigeria is rainfed, as only about 293,000 ha is
equipped for irrigation and only about 218,800 ha is being
actually irrigated with about 173,000 ha under private small
scale while 29,000 ha is under public irrigation scheme (FAO
2005, Uduma et al 2016). Though Nigeria has not attained
self-sufficiency as desired but a significant decrease has
been made in rice imports (Uduma et al 2016). Therefore,
achievement of this objective is dependent on adequate
allocation of water to agriculture and the willingness of the
 Economic Analysis and Constraints of Irrigation by Dry Season Rice Farmers
beneficiaries – farmers to pay for the resource. Kadigi (2006)
argued that irrigated agriculture, which consumes about 50 to
70% of global water resources, constitutes a driving force for
both food productivity and agricultural income. Water is an
important input used in increasing rice productivity, with
yields from irrigated rice being consistently higher than
rainfed rice.
Ikwo Local Government Area of Ebonyi State is one the
ecological areas well suitable for rice production in Nigeria.
Currently, many of the people are engaged in rice production
either at commercial or subsistence level although mostly at
subsistence level. Very few farmers have long engaged in dry
season farming mainly on the bank of rivers, streams and
swamps using very small portions of the land. In this way,
farmers have been able to produce dry season crops such as
vegetable, yam, rice among others. Private individuals and
cooperative groups have not really ventured in to irrigation
farming because farmers' willingness to pay for irrigation in
the study area has not been ascertained. This study therefore
assessed the willingness of rice farmers to pay for irrigation
for dry season rice production in Ikwo LGA of Ebonyi State.
Specifically, the study identified the factors that influenced
rice farmers' willingness to pay for irrigation in the area;
estimated the cost values the rice farmers are willing to pay in
the area; determined the effects of the socio-economic
characteristics of the rice farmers on their willingness to pay
for irrigation in the area; and analysed constraints to rice
farmers' willingness to pay for irrigation water in the area.
MATERIAL AND METHODS
The study area was Ikwo Local Government Area of
Ebonyi State, Nigeria located on the geographical coordinate
of 3001' North and 3003'North latitude and 28.5' West and 28.7'
West longitude (EBADEP Annual Report 2004. The study
adopted both random and purposive sampling techniques.
Out of the 1766 registered rice farmers in the study area
(EBADP 2015), 10% was selected from each community,
making a total of 125 rice farmers that were used for the
study. Both descriptive and inferential statistics were
employed for analysis of data generated from the field survey
which included descriptive statistics, contingent valuation
method (CVM), ordinary least square regression analysis
and principal component factor analysis .
Decision rule for factor analysis: The analysis was done in
line with the simple thumb rule developed by Kaiser (1958),
that variable with coefficient of (0.40) and above have high
loading and may be used in naming a factor.
Model specification: The model for CVM analysis on
willingness to pay for irrigation by dry season rice farmers in
Ikwo local government area of Ebonyi State, Nigeria was
19
stated as:
V(y–WTP, p, q1, Z)= V(y, p, q0, Z) ……………………… 1
Where, V denotes the indirect utility function, y is the
income of the individual rice farmer, WTP is the willingness to
pay of the individual rice farmer, p is a vector of prices faced
by the individual, q0and q1 are the alternative levels of
provision of the irrigation water under baseline and improved
conditions, respectively (with q1 > q0 indicating an
improvement from q0to q1), and Z is a vector of individual
characteristics affecting the trade-off that the individual is
prepared to make between income and the supply of
irrigation water. This equation implies that willingness to pay
depends on (i) the initial and final level of the good in question
(q0and q1); (ii) respondent income; (iii) prices faced by the
respondent; and (iv)other respondent socio-economic
characteristics.
Yi = β0 + βi Xi + µi …………………………. 2
Where: Yi is the dependent variable, Xi is a vector of
explanatory variables, β0 and βi are the parameters to be
estimated, and µi is the random error term.
Thus, the estimated WTP model explaining variation in
willingness to pay across sampled rice farmers in the study
area is specified as: WTP = β0 + β1 EDU + β2 EXP + β3 HHS +
β4 FSIZE + β5 DMKT + β6 EXT + β7 CRE + β8 ATT + β9
PWSOURCE + µi ……………… 3
Where; WTP = Amount willing to pay (naira); EDU. =
years of education (years); EXP. = farming experience
(years); HHS = household size (number of individual); FSIZE
= farm size (hectares); DMKT = distance from the farm to the
nearest market (km); EXT = access to ext. agent (dummy:
access= 1; 0 = otherwise); CRE = access to credit (dummy:
access =1, 0 otherwise); ATT = attitude towards payment for
irrigation (dummy: positive =1; 0=otherwise); PWSOURCE =
proximity to water source (km); β1 – β10 = regression
parameters; µi random error term.
RESULTS AND DISCUSSION
Factors that influence farmers' decision: The three major
factors influence rice farmers' willingness to pay for irrigation
in the study area were socio-economic (Factor I), geographic
(Factor II) and productive (Factor III) (Table 1). Factor I
included variables related to socio-economic issues. These
variables are age (0.619), educational qualification (0.690),
farming experience (0.967), household size (0.915), farm
size (0.922), and attitude/perception towards irrigation
(0.610). The geographic factors were proximate to water
source (0.836) and to market (0.771). The productive
variable were high performance of irrigation rice (.859),
access to extension service (0.847) and credit (0.876), and
ownership of rice swamp (0.856). This is in agreement with
20 S.U. Nwibo, A.V. Eze, C. Nwofoke, B.N. Mbam and G.N. Umeh

the finding of Alemayehu (2014) who observed that the Table 2. Cost values willing to be paid by rice farmers for dry
willingness to pay is likely to be influenced by various factors season rice farming
Variable Freq. (n=125) Percentage
ranging from socio-demographic, farm-specific, market
related, policy-institutional related factors as well as attitudes Willingness to pay for irrigation
Yes 125 100
and perceptions. Alhassan et al (2013) identified location of
Amount willing to be paid per 2.5 ha
farm, land ownership, and land lease prices as the significant 1000 - 5000 65 52
and influencing factors that affect farmers' willingness to pay 6100 - 10000 45 36
Above 10000 15 12
for the irrigation water in Bontanga Irrigation Scheme in
Mean US $19.0
Northern Ghana.
Cost value: All the rice farmers (100%) were willing to pay for Willingness to pay if the cost of
irrigation increases 120 96
irrigation water for dry season farming in the area (Table 2). Yes 5 4
Further probing indicates that 52% of the respondents were No
willing to pay between US $3.13-15.63 per 2.5 per ha with a Maximum amount willing to be paid
mean of US $19 per 5ha. About 96% of the rice farmers were at increase in cost of irrigation:
<6000 35 28
willing to pay if the cost of irrigation increases while 36% of 6000 – 10000 30 24
them were willing to pay maximum amount of US $30.6 – 10100 – 15000 45 36
Above 15000 15 12
41.7/5ha/year. The mean willingness to pay amount was US
Mean US$29.3
$29.3/5ha/year. Alemayehu (2014) estimated the mean
willingness to pay by small holder farmers for improved
irrigation water in the case of the Koga irrigation project in statistics (77.601) and low value of standard error of the
Ethiopia and observed that households were willing to pay a estimate (0.13053). Overall, the model was statistically
mean value of US$6.78 hectare/year and with estimated total significant meaning that the socio-economic characteristics
of US$ 92,951.34 per year. Alhassan et al (2013) estimated of the rice farmers exert significant effect on their willingness
the mean farmers' willingness to pay for improved irrigation to pay for irrigation. Educational qualification, farming
services in Bontanga Irrigation Scheme in Northern Ghana experience, and farm size indicated positive correlation with
using the contingent valuation method to be US$ 8.50 per ha willingness of rice farmers to pay for irrigation. Ogunniyi et al
per year. (2011), Mezgebo et al (2013) and Alemayehu (2014) also
Socio-economic characteristics : The willingness to pay observed positive relationship between formal education and
for irrigation showed that the coefficient of determination (R2) willingness to pay. The coefficient of household size was and
was 0.859 or 85.9%, suggesting that 85.9% of total variation statistically insignificant. This signifies that large household
observed in the dependent variable – willingness to pay for size decreases rice farmers' willingness to pay for irrigation in
irrigation was sufficiently explained by the independent the study area.
variables included in the regression model (Table 3). The The coefficients of distance of farm from the nearest
reliability of the model was confirmed by high value of the F- market and access to credit were positive and statistically

Table 1. Factors influencing rice farmers' willingness to pay for irrigation water
Factor Socio-economic Geographic Productive
Age 0.619 0.188 -0.271
Educational qualification 0.690 0.361 0.009
Farming experience 0.967 -0.084 -0.009
Household size 0.915 0.307 0.024
Farm size 0.922 0.295 -0.016
Proximate to water source 0.395 0.836 -0.078
Proximate to market 0.325 0.771 -0.066
Access to extension services -0.173 0.306 0.847
Access to credit -0.013 0.375 0.876
Attitude and perception toward irrigation 0.357 0.238 0.610
Ownership of rice swamp 0.334 -0.139 0.856
High performance of irrigation rice 0.336 0.047 0.859
 Economic Analysis and Constraints of Irrigation by Dry Season Rice Farmers 21

significant. This suggests that farmers' willingness to pay for
irrigation increases with increase in distance of farm from the
market, distance to water and access to credit. The
coefficients of 0.175, 0.153 and 0.292 implies that a unit
increase in distance of farm from the nearest market,
distance to water source and access to credit increases the
willingness to pay for irrigation by 17.5, 15.3 and 29.2
percent, respectively. Ulimwengu and Sanyal (2011)
observed negative impact of travel distance on the
willingness to pay for agricultural services, but corroborates
with the findings of Addis (2010) and Illukpitiya and
Gopalakrishnan (2004) who observed that access to credit
increases willingness to pay. The coefficient of access to
extension services was negatively and significant . The
coefficient of -0.112 means that any unit increases in access
to extension services decreases farmers' willingness to pay
for irrigation by 11.2%. This is however, contrary to a priori
expectation because extension programmes was expected
to facilitate the extension of innovations and novel ideas to
farmers for improving their farming operations.
Attitudes toward payment for the maintenance of supply
of irrigation had positive coefficient but statistically not
significant. The coefficient of 0.030 means that as attitudes
toward payment for maintenance of supply of irrigation
increases, farmers' willingness to pay for irrigation water
increases by 3.0% and this confirms to the a priori
expectation. To justify the result, the test of hypothesis (Ho3)
which states that the socio-economic characteristics of the
rice farmers have no significant effect on their willingness to
pay for irrigation in the study area showed that f-cal (77.8) > f-
tab at 5% (2.02) hence the null hypothesis was rejected while
its alternative was accepted. This implies that the socio-
economic characteristics of the rice farmers have significant
effect on their willingness to pay for irrigation in the study
area.
Constraints to rice farmers: The constraints were
institutional, political and economic factors. Using varimax
principal component analysis with Kaisers' normalization and
rule of thumb, the identified institutional component factors
were unfavourable or weak irrigation policy overlapping and
duplication of institutional functions and mandate lack of
access to credit, lack of access to water source, lack of
access to improve seed, non-inclusion of farmers in irrigation
scheme), interference from environmental authority and
problem of pest and disease (Table 4). Weak stakeholders'
ownership was identified as political component factor that
constrain rice farmers' willingness to pay for irrigation water
in the area. Similarly, high cost of labour poor financing of
irrigation project high cost of irrigation water were identified
as economic component factors that constrain rice farmers'
willingness to pay for irrigation project. Meanwhile, Uduma et
al (2016) observed that the challenges of irrigation water in
Nigeria farming system ranges from institutional, policies,
and climate change to low access to capital. However, owing
to the unfavourable land use policy in Nigeria and other
African countries, the future of private ownership of irrigation
water which is believed to be an effective way of irrigation
water management is bleak because no farmer would be
willing to invest on a land which he owns no title or ownership
(Valipour 2014). There is therefore, a need for good and
concerted government polices to encourage farmers to use
irrigation system and raise cropping intensity for irrigated
areas.
CONCLUSION
The rice farmers in Ikwo Local Government Area (LGA)
of Ebonyi State, Nigeria are willing to pay for irrigation for dry
season rice even if the cost goes higher. The high willingness
expressed by the rice farmers to pay for maintenance of
supply of irrigation water makes the project economically

Table 3. Effects of Socio-economic characteristics of rice farmers on their willingness to pay for irrigation water
Variable name Coefficient Std. Error t-value
Constant 3.062 0.118 25.954***
Educational qualification 0.051 0.003 16.554***
Farming experience 0.004 0.024 .174***
Household size -0.032 0.051 -.626NS
Farm size 0.055 0.050 1.101***
Distance of the farm to the nearest market 0.175 0.036 4.838***
Access to extension services -0.112 0.068 -1.662*
Access to credit 0.153 0.061 2.519**
Attitudes towards payment for the maintenance of supply of irrigation 0.030 0.044 .677NS
Proximity to water source 0.292 0.058 5.022***
*, ** and *** indicates significance at 10%, 5% and 1% levels respectively
22 S.U. Nwibo, A.V. Eze, C. Nwofoke, B.N. Mbam and G.N. Umeh

Table 4. Constraints to rice farmers' willingness to pay for irrigation water

Variable name Institutional Political Economic
Unfavourable/weak irrigation policy 0.836 0.172 0.247
Overlapping and duplication of institutional functions and mandates 0.716 0.312 -0.129
Lack of access to credit 0.565 0.370 0.210
Lack of access to water source 0.858 0.165 0.110
Lack of access to improve seed 0.862 0.275 0.230
High cost of labour 0.007 0.271 0.837
Limited autonomy for local people 0.525 0.538 -0.062
Non-inclusion of farmers in irrigation scheme 0.801 0.305 -0.196
Weak stakeholders ownership 0.083 0.877 -0.096
Poor financing of irrigation project -0.412 -0.299 0.719
Interference from environmental authority 0.755 0.242 -0.171
High cost of irrigation water -0.045 0.106 0.942
Problem of pest and disease 0.942 0.106 -0.045
Water interference by host community 0.267 0.140 0.171

viable and sustainable on the long term basis. The study
advocates integration of the socio-economic attributes,
geographic and productive variables that positively influence
rice farmers' willingness to pay for irrigation water into
irrigation project for promoting all year rounds rice
production, thereby reducing food import bill and promoting
food security. However, this cannot be attained if institutional,
political and economic constraints hindering rice farmers'
willingness to pay for irrigation water are not addressed
headlong. It is suggested that government should come up
with a workable and feasible water scheme since the farmers
are willing to pay for its sustainability and should streamline
and harmonize the overlapping and duplication mandates
and functions agencies to be more effective in meeting the
water need of the farmers. The farmers should be
encouraged to form cooperative society so as to access
credit for establishment of small irrigation scheme for dry
season rice production. The government should make farm
machinery available for farmers at subsidized price so as to
enhance the use of modern production inputs for larger scale
rice production and extension programme of Agricultural
Development Programme (ADP) should incorporates
irrigation scheme into their programmes and extend same to
farmers.
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Received 21 September, 2018; Accepted 21 December, 2018