IMPACT OF TRACTOR SERVICE ADOPTION ON PROFIT MARGIN DIFFERENCE BETWEEN ADOPTER AND NON-ADOPTER IRRIGATED RICE FARMERS IN NORTH-WESTERN NIGERIA

Abstract

The North-western region of Nigeria is distinguished by a high density of small-scale 
farmers who predominantly depend on manual labour for agricultural activities. This study 
estimated impact of tractor service on profit margin of adopter and non-adopter irrigated 
rice farmers in the North-western Nigeria. The study employed cross-sectional survey 
design and utilized multi-stage sampling technique to collect data from 564 farmers 
cultivating rice under irrigation across Kaduna, Jigawa and Kano States. The Endogenous 
Switching Regression (ESR) model and Endogenous Treatment Effect model (ETM) were 
used as analytical tools to address the potential selectivity and treatment. The results of the 
ESR indicates that adoption of tractor services has probability of increasing the profit 
margins by approximately 2.232 for adopters, compared to only 0.610 for non-adopters. 
The profit margin difference between adopters and non-adopters of tractor services is 
about 1.622 (N1.6 million). Based on these results, it is concluded that adoption of tractor 
service has a positive and significant correlation on the farmers’ profit margin. The study 
recommends promoting tractor services adoption among the non-adopters by making 
tractors available for hire to farmers through government subsidies.