Sunday 15 December 2013

Agricultural development Process and land Use, tenure and Conservation in Nigeria(Part 3)

   LAND USE IN NIGERIA
With respect to Agriculture, the use to which land can be put can be broadly divided into 2 namely Agricultural and Non Agricultural use.
The agrcultural uses include i) direct agricultural production e.g crop, animal and fish. That is, a situation where you use the land  to raise crops, fish and/or rear animals for consumption or export ii)seed multiplication and plant propagation iii)infrastructural purposes e.g experimental stations and farm buildings iv)regenerative purposes such as pastures, forests and fallow rotation
The non-[agricultural uses of land include commercial or industrial uses, residences, recreation, infrastructure, mining/quarrying uses
So we see that land has many competing uses to which it can put hence the need to maximize the use of land.
Factors affecting the use of land: natural limits i.e total land area under the user’s control; state of technology; population or decline, migration, nomadism and  standard of living
In developing countries like Nigeria land use is characterize by poor technology, low yields, continuing poverty, soil degradation , increasing population pressure, limited mgt skills restricted farm size 

LAND TENURE
The term "tenure" is used to signify the relationship between tenant and lord, not the relationship between tenant and land.  Land tenure is the relationship, whether legally or customarily defined, among people, as individuals or groups, with respect to land. (For convenience, “land” is used here to include other natural resources such as water and trees.) Land tenure is an institution, i.e., rules invented by societies to regulate behaviour. Rules of tenure define how property rights to land are to be allocated within societies. They define how access is granted to rights to use, control, and transfer land, as well as associated responsibilities and restraints. In simple terms, land tenure systems determine who can use what resources for how long, and under what conditions. These arrangements have become necessary in view of the fact there is population pressure on land and increase in the alternative uses of land. That is why in Nigerai, we have the Land Use Decree  in 1978 which later became the Land Use Act which stipulates:
An Act to Vest all Land compromised in the territory of each State (except land vested in the Federal government or its agencies) solely in the Governor of the State , who would hold such Land in trust for the people and would henceforth be responsible for allocation of land in all urban areas to individuals resident in the State and to organisations for residential, agriculture, commercial and other purposes while similar powers will with respect to non urban areas are  conferred on Local Governments.(27th March 1978) Commencement.
This necessitated the setting up of land use and allocation committees by state governments to administer and supervise the allocation of land to land seekers from within and outside each state in order to create proper integration in resource use and permit more effective use of such lands that would otherwise lie idle. The ACT also made it possible for state governments to acquire lands compulsorily for eventual redistribution to users and set aside lands for public purposes.
As good as this ACT may seem to be, it is not without limitations or problems associated with it
1. the govt took advantage of the ACT to prosecute their own projects within the state yet it has not been easy for enterprising farmers to secure enough lands for their uses nation-wide
2.many states do not give lands to people of other states for the fear of losing one’s property to natives of another states
3.there is usually a conflict between the political and established farms of govt, thereby creating confusion as to which group could validly allocate the land (and whose) to enterprising farmers
4. sometimes also there is a lack of understanding of the sufferings of land seekers on the part of those who allocate the land farmland.
5. most of the purchases were done by wealthy non-farmers who held the land idle waiting to capitalize on the appropriate market situation while food production is on the decline
All these and many more are the reasons why the Land Use Act may need to be reviewed or strengthened  so as to  guarantee equitable access to productive opportunities on the land and security of such access once gained.    

LAND CONSERVATION
Definition: it means the wise use of the land in such a way that there is a continuous flow of benefits from the land resources to the land users (at present) and future generations.
There are 3 broad types of land resources
i) stock resources: e.g coal, petroleum,metals,stones etc. these resources are not renewable. How then can we ensure the future generations benefit from it? It is by investing the revenue from such land in profitable and lasting ventures. 
ii) flow resources: they are the resources in continuous supply e.g sunlight, stream, precipitation etc. modern technology has made the  storage of these flow resources possible. e.g solar energy panel to store sunlight, dam and dykes to store stream water
iii) composite resources (having both stock and flow characteristics):these include biological resources such as plants, animals, fish and wildlife; soil resources, man-made improvements especially rural  infrastructure that complement agricultural land resource use.
CONSERVATION PRACTICES with respect to agricultural land resources include
i) prevention of erosion arising from excessive farming and overgrazing
ii) building of dam to retain water for multi-purpose uses
iii) afforestation to influence precipitation and climate
iv) flood control, and

v) education for awareness about fire use for land clearing,

Thursday 12 December 2013

Module 1 Revision ( PART 2)

RECENT POLICY DIRECTION TO ENHANCE AGRICULTURAL DEVELOPMENT
The 7-point devt agenda of the Yar’Adua administration  was borne out of the vision 202020. The 7-point agenda evolved from synthesizing the NEEDS, CAADP, and NEPAD documents. The Food security and Land Reforms agenda relate to agric. devt. The food security component led to the formation of NSPFS, ATA and GES.
Pls avail yourself to learn more on the features and objectives of ATA programme. The present minister of agricultural, Dr. Akinwunmi Adesina is currently in-charge. You can find some information on this on pages 12-13 of the new GES 105 textbook 
The whole essence of the GES with respect to fertilizer distribution is to get the govt out of the fertilizer procurement and distribution  and leave it in the  hands of private sectors.
Abbreviations and their meanings
1.New Partnership for Africa's Development (NEPAD).
2.Comprehensive Africa Agriculture Development Programme (CAADP).
3.National Economic. Empowerment and Development Strategy (NEEDS).
4.Agricultural Transformation Agenda(ATA)
5.National Special Programme for Food Security(NSPFS)
6.Growth Enhancement Support Programme(GES)
The Yar’adua’s 7-point agenda
POWER AND ENERGY – The infrastructural reforms in this critical sector through the development of sufficient and adequate power supply will be to ensure Nigeria’s ability to develop as a modern economy and an industrial nation by the year 2015.
FOOD SECURITY – This reform is primarily agrarian based. The emphasis on the development of modern technology, research, financial injection into research, production and development of agricultural inputs will revolutionalize the agricultural sector leading to a 5 – 10 fold increase in yield and production. This will result in massive domestic and commercial outputs and technological knowledge transfer to farmers.
WEALTH CREATION – By virtue of its reliance on revenue from non-renewal oil, Nigeria has yet to develop industrially. This reform is focused on wealth creation through diversified production especially in the agricultural and solid mineral sector. This requires Nigerians to choose to work, as hard work by all is required to achieve this reform.
TRANSPORT SECTOR – The transportation sector in Nigeria with its poor roads networks is an inefficient means of mass transit of people and goods. With a goal of a modernized industrialized Nigeria, it is mandatory that Nigeria develops its transport sector. The PDP government has already started this process by the ongoing rehabilitation and modernization of the railway. While the reforms might take some time to take effect, it is a need that must be addressed.
LAND REFORMS – While hundreds of billions of dollars have been lost through unused government-owned landed asset, changes in the land laws and the emergence of land reforms will optimize Nigeria’s growth through the release of lands for commercialized farming and other large scale business by the private sector. The final result will ensure improvements and boosts to the production and wealth creation initiatives.
SECURITY – An unfriendly security climate precludes both external and internal investment into the nation. Thus, security will be seen as not only a constitutional requirement but also as a necessary infrastructure for the development of a modern Nigerian economy. With its particular needs, the Niger Delta security issue will be the primary focus, marshaled not with physical policing or military security, but through honest and accurate dialogue between the people and the Federal Government.
EDUCATION – The two-fold reforms in the educational sector will ensure firstly the minimum acceptable international standards of education for all. With that achieved, a strategic educational development plan will ensure excellence in both the tutoring and learning of skills in science and technology by students who will be seen as the future innovators and industrialists of Nigeria. This reform will be achieved through massive injection into the Education sector.


STRATEGIES FOR INCREASING AGRICULTURAL PRODUCTION IN NIGERIA
1) proper planning: It is commonly said that if you fail to plan then you  are planning to fail. There wont be desired increase in agricultural production  and consumption pattern if agriculture is left in the hands of market forces alone. Planning will show u the roadmap to achieving your desired goals and in this case the goal is to increase agricultural production
2) The government should play more active roles in facilitating and supporting agricultural activities as witnessed in the 1960-1969. Did u remember what I said concerning the 1st era (pre-1970 era) that govt concentrated efforts on agric research, extension, export crop, marketing and pricing which were largely supportive
3) Self sufficiency strategies: achieving national food self sufficiency may trigger some trade-offs. Trade –offs can be likened to some compromise you allowed in other to reach your desired targets or goals. e.g increasing maize production may come only from new imports of fertilizer/machinery
4) increase in agricultural budgets . it is not  just increasing the budget but the release of the budget must be timely to synchronized with farm field operations.. it shouldn’t be the case of “medicine after death” 
5) investment in human capital: these would increase the skills of the farmers which on the long run would translate to higher production level
6) there must be complementary investment in other economic sectors such as investing in infrastructure and technological components which helps to drive agric production. You know why? Because agric does not exist in a vacuum. Even you as human being, you need others to survive
7) Social and environmental protection: the safety of lives and ensuring environmental sustainability are worthwhile goals in sustaining agric production. How can there be any meaningful devt when there is chaos/unrest/problems in any other facets, be it physical, economic, biological and/or geograghical?
8) encouraging private sector involvement with minimal govt intervention
9) one of the key strategies to increase agric production in Nigeria is to relieve the constraints associated with ownership and use of land
See you in next class when I will be discussing with you on the 3rd and concluding part of this module. Till then, drop your comments or questions with respect to this course.

Tuesday 10 December 2013

Module 1 Revision

CHAPTER 1: Agricultural Development Process and Land Use, Tenure and Conservation in Nigeria 

Introduction
Farming is the nucleus of agriculture. Processing, Transportation and storage are collectively referred to as agricultural marketing activities.  Agriculture therefore, is more than just farming. It includes a wide range of activities many of which do not occur on farms and are not managed by farmers.

Roles of Agriculture in Economic Development
1. Provision of food: Have you ever thought about the source of the food you eat? Of course, its from Agriculture. When a country cannot meet the food requirement of her teeming populace locally, it then becomes necessary to import to supplement the  inadequate local food production 
2.Provision of raw materials to agro-allied industries.The industrial sector especially the Agro-allied industries depends on Agriculture for survival and growth. This butresses the popular slogan “If agric. Should remain stagnant, industries will not grow” says Lewis in 1954
3.Provide employment opportunities:agriculture performs dual roles of employer and supplier of labour to other sector of the economy
4. Contributes to foreign exchange earnings through exports of cash crops
5.Contributes significantly to the GDP of our country(about 41% in 2002).  See table 1 on page 2 of GES105 textbook for more on the share of GDP from Agriculture
6. Increase the income of the rural people and this leads to increase standard of living
7.It has led to rural devt. through various agric devt programmes such as   RBDA, ADP, DFRRI etc
8.Provides market for industrial products and so induces industrial growth

RECENT TRENDS IN AGRICULTURAL PERFORMANCE
Table 1 on page 2 of GES105 textbook shows that Agricultural performance is not too impressive in recent times. This you can see in the share of Agric to the GDP. Thus we have to import to supplement the shortfalls in local production. However there is a slight growth in the use of non-traditional inputs and a growing class of medium and large scale farmers

CONSTRAINTS OF AGRICULTURAL DEVELOPMENT IN NIGERIA
1. Inadequate physical infrastructures such as feeder roads, water, electricity,telephone lines and storage facilities
2.land tenure system which is not favorable to increased agric production
3.Rural-Urban drift of able-bodied farm youth as a result of inadequate incentives e.g farm power
4. Poor or rudimentary farm credit system
5. Inefficient agric research system to generate new technology practices and management
6. Poor extension services to disseminate available new technologies
7 Inadequate incentive: for instance, no adequate  price support system  in place to offset the imbalances caused by off-farm opportunity cost of labour

MAJOR AGRICULTURAL POLICIES AND PROGRAMME EFFORTS IN NIGERIA  
We shall consider the policies and programmes under 3 eras
1st era (pre 1970)
2nd era (1970-1984)
3rd era or the SAP era(post 1984)
NB: PRE means before; POST means after
1st era or era of laisez faire
What are the features of this era ? There is minimum govt intervention; the private sector produced the bulk of the food export crops; govt efforts were largely supportive in terms of agric research, extension, exporting crops, marketing and pricing; Farm Settlement Scheme(FSS) policy was worthy of note during this era ; the impressive performance of agric during this era was not due to FSS policy but due to favorable socio-economic climate that encourage food and cash crop production. Infact the FSS was formerly declared a failure in 1972.
See page 4 to see what FSS is all about. 
2ND ERA FEATURES
-maximum govt intervention
-both macro and micro policies were instituted
Macro policies include:
establishment of the fiscal and monetary policies which were basically expansionary especially with respect to agriculture. The policies promote greater flow of credit to agriculture. The interest rate with respect to agric was low compared to other sectors of the economy. NACB was established in 1973. Similarly, RBS and ACGS were launched in 1977
other macro economic policies not favorable to agric during this period include import liberalization, wage and salary policies. The import liberalization did not encouragehome or local production. The wage and salary awards by the then govts cause a rural-urban migration of farm labour as a result of wide differences in rural and urban salaries. People move from rural areas to urban centres in search of white collar jobs thereby causing acute shortage of farm labor
Micro economic policies include
-establishment of 6 national commodity boards in 1977. The commodities are cocoa, groundnut,palm-produce, cotton,rubber grains
-fertilizer procurement and distribution centralized in 1975 and policy on manufacture of fertilizer formulated
- the national seed service(NSS)was created in 1972
- agro-service centers and NAFPP launched in 1973
- this era  witnessed the establishment of agric input subsidy policy in which prices of fertilsers, seeds, agro-chemicals, nad tractor-hire services were subsidized
NB: All these policy instruments is with respect to farm inputs and to promote the use and acceptance of these inputs
Other policies and programmes aimed at influencing agric activities during this era include
i)ADPs which started in 1972 ii)Tree crop mgt. iii)Agric research institutes iv)RBDA established with a decree in 1976 v)Strategic grain reserves vi)Federal govt parastatals
see the details on these programmes and full meanings of abbreviations on pages 4-7
The ineffectiveness of these policies during this era led to instituting SAP in 1986
THE POST 1984 ERA OR 3RD ERA OR THE SAP ERA
The philosophy of SAP is that agric is essentially a private sector business where market forces are allowed to direct the economy and that govt plays the role of a facilitator.
The overall macroeconomic policies of SAP were deflationary and belt-tightening. The Sap regime brings about devaluation of our naira export drive, reduction in public expenditure, credit controls etc. SAP emphasizes exchange rate flexibility, broadening the productive base of the economy and reducing dependence on petroleum.

OBJECTIVES OF SAP
1. restructuring the economy by diversifying the productive base
2. rationalising consumption pattern and reducing dependence on petroleum exports and commodity imports
3. expanding non-oil exports
4 .reducing the import content of locally produced foods
5.attaining self sufficiency in food and raw materials production within the shortest possible time
6. rationalising the country’s fiscal and monetary policies
7. liberalisation of the country’s trade and payment system
NB: The macro economic policies that directly affected under the SAP regime may be divided into fiscal, monetary, trade or exchange policies and institutional policies instruments.
Pls check the highlights of these policy instruments on pages 8-9
We also see that the success of SAP greatly depends on Agriculture. SAP was officially terminated in 1992

OVERVIEW OF THE POST SAP POLICIES
Remember that the whole idea of SAP was to restructure and diversify the countrys productive base in order to increase efficiency and reduce dependency on the oil sector. The fiscal policies, after the introduction of SAP, aimed at cutting down government expences and removing fiscal deficit. You ask me how? i)by removing subsidies on petroleum and other agricultural inputs. The implication of this is that the share of agric in the federal capital expenditure also dropped ii)rationalization of govt programmes iii)adoption of cost recovery pricing for basic infrastructures and parastatals. This was what led to privatization of many parastatals
However, in 1997, govt expenditure as a percentage of GDP rose from 10.2% in 1996 to 11.4% in 1997 due to debt service payments as well as outlays on the national Priority Projects
Also in the year 2000,federal govt expenditure increased by 25.3% and 7.3% over the level in 1999 and budget estimates respectively. This was partly due to higher personnel cost. Remember that was the time the emoluments of civil servants was reviewed upward
The year 2001 also witnessed expansionary fiscal operations by the 3-tiers of govt as a result of the proceeds from excess crude oil account and  GSM  licensing.
The monetary policies (late 90s-2000) aimed at maintaining internal and external balance including sustenance of single-digit inflation rate. Govt also ensure the  increase and flow of credit to the agric sector
Furthermore, the conditions for licensing banks was liberalized. As a result of this, the no of banks were increased from 41 in 1986 to 92 in 1999. This would eventually create a competitive environment.The lending or interest rate increased from 9.6% in 1986 to 36.1% in 1992 and dropped to 26% by 2000. With this high lending rate, assessing credit by the small scale farmers was difficult. In order to ensure that micro credit was provided to farmers and rural households and at a comparatively lower lending rate, the Nigerian Agriculture, Cooperative and Ruraal Development Bank(NACRDB) was established in 2000.
In 2001,Federal Govt established the Small and Medium Industries and Equity Investment Scheme(SMIEIS). To do what? i.stimulate growth and devt within the country ii. Develop local technology iii)generate employment. Membership of SMIEIS includes MDs/CEOs of banks in Nigeria which require all licensed banks in Nigeria to set aside 10% profit b4 tax (PBT) for the running of SMIEIS
In 2001,govt established 3 multi-commodity devts and marketing companies. 40% of the take-off grant was provided by the fed govt while the remaining 60% came from the farmers.These companies were i)Arable crops Devt & Marketing company ii)Tree crops Devt & Marketing company iii) Livestock & Fish Devt & Marketing company. The whole essence of establishing these companies was to promote increased production, better processing, modern storage & marketing of agric commodities at both domestic and foreign markets.
Trade policy during the post-sap era sought to: i) promote food and raw material production ii)promote agric exports and  iii)discourage importation of food and raw materials
What are strategies put in place by the govt to discourage importation? i)trade liberalization ii)export promotion iii)backward integration iv) partial or total privatization of govt farms so as to discontinue direct production by the government v)agric pricing policy
The 2002 monetary & credit policies ensures i)continued observance of appropriate grace periods on agricultural loans (because you cannot compare agric with any other business. It takes some time b4 apric. products mature. This is what is refered to as gestation period on page 10, 2nd paragraph. For instance, the gestation period of cocoa or orange plantation will be different from that of vegetable or cassava)
To be continued………