Abstract
When Nigeria ended its petrol subsidy in May 2023, fuel and transport prices climbed steeply, prompting fears that the cost of farming would rise for small-scale producers. This paper investigates how the policy change influenced the cost of producing sorghum in Zuru Agricultural Zone, Kebbi State, which farmer characteristics explained differences in the cost increase, and what coping measures farmers adopted. A multi-stage sampling design was used to select 240 sorghum farmers from eight markets in the Zuru and Danko/Wasagu Local Government Areas, of whom 239 returned usable questionnaires. The data were examined using descriptive statistics, multiple and binary logit regression, mean effectiveness scores and one-sample t-tests. Most respondents were men (93.7%), most were highly experienced (57.7% had farmed for over 15 years) and operated on a small scale, and only a few had reached extension services (11.7%), credit (7.1%) or cooperatives (8.4%). Production cost was positively and significantly related to fuel price (β = 0.472), transportation cost (0.361), labour cost (0.287) and fertilizer cost (0.214), with R² = 0.801, and 70.7% of respondents reported that their costs had been affected (t = 7.021, p < 0.05). Farmers with more education, longer experience and bigger farms experienced smaller percentage increases in cost, while contact with extension agents reduced the probability of being affected. Farmers coped mainly by using local inputs (89.5%) and fuel-efficient machinery (89.1%), but rated these responses as only moderately effective (mean score = 2.43). The findings indicate that subsidy removal raised sorghum production cost significantly. Targeted input support, better rural roads, and stronger extension, credit and cooperative services are recommended.
Keywords: fuel subsidy removal, sorghum production cost, adaptation strategies, smallholder farmers, Kebbi State
jaerem Abdullahi Peni
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