Economic imapct of agricultural mechanization-akinola
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As part of the major effort to addressing productivity decline and drudgery involves in labour intensive agriculture in Nigeria, a study on the economic impact of agricultural mechanization adoption has been carried out in Ondo State, Nigeria. This study employed a multi stage sampling techniques to collect information on the socio-economic characteristics, institutional factors and methods of carrying out farming activities. The collected data were analysed using descriptive, budgetary and logistic regression model. Analyses reveled that farmers in the area are middle-aged and are relatively educated. 38.7% and 87.6% of the adopters and non-adopters agreed that mechanization destroys soil quality. The gross margins for the adopters and non-adopters were N112, 423.37 and 74,727.87 respectively. The mean net revenue for adopters and non adopters were N110,190.81 and N 73,726.63 respectively. The profitability differentials were measured using the rate of return (ROR) and benefit cost ration (BCR). The rates of return to investment were 2.8 and 2.5 for adopters and non-adopters respectively, while the benefit cost ratios were 4.0 and 3.5 respectively for adopters and non adopters respectively. The result of the logistic regression revealed that education, extension visit and machine access were significant determinants of adoption of mechanization practices. There is therefore the need to put appropriate policies that would create better access to these technology and equipments at the right time and at minimum cost. This would improve their productivity which will in turn improve their income and thus ensures a better livelihood. Farmers should be educated followed by the periodic visit by the extension agents. These will together enhance mechanization adoption by farmers in the study area. Keywords: Agricultural mechanization, economic impact, logistic regression, rate of return, benefit cost ration, maize farmers, Ondo State.