Impact of perceptions of climate variability on investment decisions pattern among smallholder rice farmers in Nigeria

Abstract

Although perceptions of climate change have been widely studied, limited attention has been given to how these perceptions influence the investment decisions of smallholder farmers in rice production. This study, therefore, examined the impact of perceived climate variability on investment choices among smallholder rice farmers in the study area. A multi-stage sampling technique was used to select 240 smallholder farmers. Data were collected through field surveys, interviews, and structured questionnaires and were analyzed using descriptive statistics and a Seemingly Unrelated Regression (SUR) model. Descriptive analysis revealed that 61.90 % of the rice farmers perceived climate variability in their environment. In response to these perceptions, 86.60 % of the farmers invested in labor, 72.80 % in herbicides, 66.80 % in fertilizers, 46.50 % in pesticides, and 34.70 % in tractor rentals. Notably, a majority of 58 farmers simultaneously invested in three different inputs. Results from the SUR model indicated that household size, extension services, income, age, farm size, membership in cooperative societies, access to credit, primary occupation, participation in farm associations, years of education, and perception of adverse climatic conditions significantly influenced farmers' investment decisions. The study concludes that smallholder rice farmers tend to make multiple investment decisions as a strategy to cope with climate variability. It recommends that stakeholders involved in climate change mitigation and adaptation initiatives intensify efforts to educate smallholder farmers on the benefits of diversified investment strategies in the face of changing climatic conditions.