Rural Land Market, Livelihood and Welfare among Households in Oyo State, Southwest Nigeria

Abstract

With rapid population growth and resulting increased land fragmentation, landholding becomes smaller, negatively impacting on the living standard of rural households. Thus, the need to understand the potentials of land markets to improve rural households’ access to land through the adjustment of households’ landholding for livelihood activities, and its consequent effect on their welfare. This paper examined the relationship between rural land market, livelihood and welfare among households in Oyo state, Southwest Nigeria. Using a structured questionnaire, a survey was conducted on a sample of 200 respondents, who were selected through multistage sampling procedure. Descriptive statistics, Land Market Index (LMI), Tobit model and multiple regression analysis were used to analyse the primary data. Results show that majority (74.0%) of households were involved in crop farming with mean income of ₦53 833.33 (±26 784.560), which was relatively higher than livestock ₦31 567.08 (±20 897.47). The mean total monthly expenditure was ₦26 548.50 (±8945.5692). Identified land transaction methods include purchase (76.3%), lease (19.8%), and rent (3.9%). On the average, 97.0% of land held by households were acquired through market (LMI=0.97). Sex and household status had significant positive effects on the extent of households’ participation in land market at p<0.01. Also, LMI, crop farming and livestock farming had significant positive effect on households’ welfare. Obtaining land through market for livelihood activities promotes households’ welfare. Rural land market and livelihood activities have significant positive effects on the welfare of farmers. There is need for Government to facilitate formal land markets in rural areas.