Adoption of climate smart agribusiness practices and their effects on farm productivity and profitability in north central Nigeria

Abstract

This study examines the adoption of climate smart agribusiness practices and their effects on farm productivity and profitability among smallholder farmers in North Central Nigeria. Primary data were collected from 390 farmers using a multistage sampling technique and structured questionnaires. Descriptive statistics, an adoption intensity index, a Cobb Douglas production function, an Ordinary Least Squares profit model, and an Endogenous Switching Regression model were employed for analysis. The results show a generally moderate to high level of adoption, with practices such as intercropping, crop rotation, and integrated nutrient management being the most widely used. The switching regression estimates reveal the presence of selection bias, which justifies the need for a counterfactual framework. The treatment effect results indicate that adoption significantly increases farm productivity and profitability. Specifically, the average treatment effect on the treated shows that adopters experience about a 30.2 percent increase in productivity and a 42.4 percent increase in profitability relative to what they would have obtained without adoption. The average treatment effect on the untreated further suggests that non adopters would gain substantially if they were to adopt. The findings confirm that adoption operates as a productivity enhancing and income enhancing strategy for smallholder farmers. Adoption nonetheless remains constrained by limited access to credit, extension services, and input markets. The study concludes that scaling up adoption can materially improve farm performance and resilience across the region.