Conditional tests of the CAPM

Table 4.23: Perceptions of respondents on the roles of cooperative in crop agricultural production.

S/N ITEM MEAN(X) STD. DEV. REMARK

1 I always obtain farm credit at affordable

interest rates. 3.1642 1.26788 Agree

2 Credit processing in my cooperatives is

always fast and timely 2.9403 1.29347 Agree

3 Agricultural extension officers are always engaged by my cooperative to

advise us on farm operations 3.1533 1.47243 Agree

4 Fertilizers are always made available by my cooperative at the beginning of the

planting season 3.2062 1.48024 Agree

5 We always assist each other in land preparation in readiness for planting of

crops. 3.1357 1.46073 Agree

6 Herbicides and pesticide are always available and affordable in my

cooperative 3.2904 1.41126 Agree

7 I always get processing and marketing assistance from mu cooperative

whenever the need arise. 3.0638 1.33819 Agree

8 I always have access to distance markets

through my cooperative 3.6160 1.11214 Agree

9 My cooperative enables to have access to hybrid seeds and seedling for increased

productivity 3.3175 1.23892 Agree

10 Through my cooperative my farm productivity and income has increased

3.2008 1.13628 Agree

GRAND MEAN(x) 3.2088 .66614 Agree

(n=737)

Source: Field survey, 2015

The perceptions of the respondents depicting role of cooperative in the farm production process by the respondents in Table 4.23. Based on the 3.0 threshold of acceptance, the mean scores and standard deviations for all items show an agreement with all the items, except one. Specifically, the respondents agreed that agricultural extension officers engaged to advise farmers on farm operations but not often;

fertilizers are always made available in the cooperative at the beginning of the planting season; members always assist each other in land preparation in readiness for planting of crops; herbicides and pesticide are always available and affordable in the cooperative; they always get processing and marketing assistance from the cooperative whenever the need arise; they always have access to distance markets through the cooperative; cooperative enables them to have access to hybrid seeds and seedling for increased productivity; and through my cooperative their farm productivity and income has increased. The only exception to the responses was that credit processing in their cooperatives is always fast and timely, which had mean rating of 2.94.

The implication of the above outcome is that there is a commonality of opinion on the contributory role of the cooperative in agricultural production. In most rural cooperatives where access to basic farm inputs and credit are scarce and/or even non-existent, cooperative is often the only source for succour.

4.3.2 Test of hypothesis six.

H₀: There is no significant difference among the different categories of membership on the contributory role of cooperative in agricultural production.

H₁: There is significant difference among the different categories of membership on the contributory role of cooperative in agricultural production.

Table 4.24: One way ANOVA estimates for testing hypothesis six

Sum of Squares Df Mean Square F Sig.

Between Groups 1.128 4 0.282 0.634 0.638

Within Groups 325.465 732 0.445

Total 326.593 736

DECISION: From the ANOVA estimates of the mean responses to the contributory role of cooperative in agricultural development of the various categories of years in cooperative membership is presented in Table 4.19. The F ratio with a value of 3.298 is significant at 0.01 level. As a result the null hypothesis is rejected and the alternate is accepted. We, therefore, conclude that there is significant difference among the different categories of membership on the contributory role of cooperative in agricultural production. The implication of this finding is that the more years the farmers remain as members of cooperative, the greater the chances of raising their agricultural output. It is also instructive to note that this finding is line with the presentation in Table 4.2.1 where it was found that the older members reported more mean value of agricultural output than newer members.

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of Findings

The following findings were made:

1. From the ANOVA estimates of the value of farm outputs of the various categories of years in cooperative membership, an F ratio with a value of 7.332 was seen to be significant at 1% level, thereby leading to the conclusion that agricultural output of farmers is significantly influenced by their years of cooperative membership.

2. Following an analysis of production function, an F ratio measuring the aggregate effect of all the explanatory variables (farm inputs, seedlings, fertilizer, chemicals credit and extension contacts) on farm output was estimated to be 7.454, which was significant at the 1% level of significant. The conclusion was that farm inputs, credit and extension contacts obtained from cooperative have significant effect on farm output of members.

3. The correlation between gross income and years in cooperative membership was significant, r (735) = 0.980, p < 0.001 and the correlation between net income and years in cooperative membership was also significant, r (735) = 0.420, p < 0.001. It was, therefore, concluded that profitability in farm operations increases as one get older in cooperative membership.

4. Resource use efficiency indicators for members’ use of credit, labour, fertilizer, pesticides, herbicides and land by respondents according to the different categories of years in cooperative membership were found to be significant at the 1% levels. It was concluded that there was significant difference among

cooperative members in the use of production resources, in favour of respondents who had been members for longer years.

5. The F ratio of 12.702 from ANOVA in the multiple regressions on the effect of age, education, marital status, farming experience, etc on gross income was significant at the 0.001 level. Hence, the conclusion that that levels of profitability attained by cooperative members was significantly influenced by their socio-economic characteristics.

6. The F ratio with a value of 3.298 from ANOVA of the mean responses to the contributory role of cooperative to agricultural production was significant at 0.01 level. Thus, there is commonality of agreement that the more years the farmers remain as members of cooperative, the greater the chances of raising their agricultural output.