Typology of Grain Storage Structures in Rural Communities in Kogi State – Nigeria: Economic Implications on the Rural Farmers

Abstract

This study examined the economic impact of grain storage structures and storage duration on the income of rural farmers in Kogi State, north-central, Nigeria. The study utilised the questionnaire method, supported by on-site observation and interactions with key players along the grain supply chain. Multistage sampling was used to select three hundred (300) rice and maize farmers spread across fifty (50) communities in the State that participated in the research. The results show that the storage systems and length of storage of the farm produce (maize and rice) has a significant impact on the annual income of the farmers, and only 1 per cent of the grain farmers’ population earned above the 2017 world’s poverty benchmark. We found out that access to technology for agricultural purposes was zero. The major challenges reported by the farmers are; poor processing/storage facilities (43.4 %), poor sales after harvest (30.3 %) and lack of agricultural credits (23.3 %). The existing storage structures encourages post-harvest waste and losses, affecting the quality of stored grains and invariably its market value and farmers’ income; the grain market is erratic with middlemen dictating the price of grains. None of the farmers surveyed had accessed agricultural credit at any time. The study recommends shared or communal storage centres for each of the communities, where farmers can either have their grains sold at Guaranteed Minimum Price or with an option to store the grains in anticipation of better prices in the future. Bank Accounts would be opened for the farmers, and a Grain Card would be issued to help keep and build the farmers’ “Activity Ratings” for economic purpose like credit assessment to determine eligibility for agricultural credit. Private firms should manage the shared or communal centre in each community in a public-private partnership with the government, but the farmers should be shareholders by default. The shared or communal centres should also be a reliable intermediary between the farmers and other key stakeholders, strengthening the rural economic institution, and serving as a training centre for the rural farmers. A theoretical shared or communal storage model was designed.