INTRODUCTION
1.1 Background of the studyAgriculture is the foundation and bedrock upon which the development of stable humancommunity has depended on throughout the whole universe such as rural and urbancommunities. It is concerned with the husbandry of crops and animals for food and otherpurpose. The study of the history of economics provides us with ample evidence that can proofthat agricultural revolution is a fundamental precondition for economic development. Theagricultural sector has the potentials to be the Industrial and economic springboard from which acountry’s development can take off. Indeed, more often than not, agricultural activities areusually concentrated in the less developed rural areas where there is a need for ruraltransformation, redistribution, poverty alleviation and socio-economic development.Agriculture in the context of the economy is tied with the various sectors and is essential forgenerating broad based growth necessary for development. Agriculture is fundamental to thesustenance of life and it is the bedrock of economic development, especially in the provision ofadequate and nutritious food so vital for human development and industrial raw materials.Sustainable agricultural development is propelled by agricultural policies. The first national onagriculture was adopted in 1988 and was accepted to remain valid for about fifteen years, that is,up to year 2000. Also, in year 2001, a new document on agriculture, was lunched. The newdocument has most of the features of the old ones, but with more focused direction and betterarticulation. Agricultural policies are supported by sub-policies that facilitate the growth of thesector. Implementation of agricultural policies is however moderated by macro-economicpolicies which provide the enabling environment for agriculture to grow pari passu with the other1
sectors. These policies usually have major impact on profitability of the agricultural system andthe welfare of farmers as they affect the flow of funds to the sector in terms of budgetaryallocation, credit, subsides, taxes and therefore, must be in harmony and mutually reinforcingwith the agricultural policies. The macro-policies comprise the fiscal, monetary, trade budgetarypolicies and other policies that govern macro-prices.The agricultural sector has potentials to shape the landscape, provide environmental benefitssuch as conservation, guarantee sustainable management of renewable natural resources,preserve biodiversity and contribute to the viability of rural areas development. Through itsspheres of activities at both the macro and micro levels, the agricultural sector is strategicallypositioned to have a high multiplier and linkage effect on any nation’s quest for socio-economicand industrial development. The growth of the agricultural sector in Nigeria was not smooth.Adubi (2000) defined agriculture as the cultivation of soil for crop production and of lookingafter animals to produce better meat and other food products and also a process by which farmproducts are sold.According to Anyanwu (1997), the role of agriculture in transforming both the social andeconomic framework of an economy cannot be overemphasized. in effect it has been the mainsource gainful employment from which the nation can feed its teeming population providing thenation industries with local raw materials and as a reliable source of government revenueThe agriculture sector in the 1960’s was contributing 85 percent of Nigeria foreign Exchange earning 90 percent employment generation, and about 80 percent to gross domesticproduct (CBN, 2010).2
However, the sector since the discovery of oil has witnessed lots of neglect from the varioussuccessive governments. At present, agriculture accounts for only 35 percent of the real sector,while crude oil accounts for about 55 percent and above.The role of the agricultural sector in bringing about economic growth and sustainabledevelopment of a nation cannot be underestimated. Okolo (2004) described agricultural sector asthe most important sector of the Nigeria’s economy which holds a lot of potentials for the nationas it had done in past. The agricultural sector is arguably the most important sector of economy.Abayomi (1997) once averred that the principal explanation for poor economic performance, isthe negligence of the agricultural sector, while rising agricultural productivity has been the mostimportant concomitant of successful industrialization. Thus, it is not an overstatement to assertthat the growth and development of Nigeria depend to a large extent on development of theagricultural sector.On attainment of political independence in 1960, the trend was still very much the same, theNigeria economy could reasonably be described as an agricultural economy, because agricultureserved as the engine of the growth of the overall economy (Ogen 2003). According to Alkali(1997) Nigeria was the world’s second largest producer of cocoa, largest exporter of palm oilduring the period. And was also a leading exporter of other major commodities such as cotton,groundnut, rubber, hides and skins. Despite the reliance of Nigerian peasant farmers ontraditional tools and indigenous farming methods, these farmer produced up to 705 of Nigerian’sexports and 95% of its food needs (Lawal, 1997)
