CHAPTER
ONE
INTRODUCTION
1.1
Background of the Study
Agriculture is
the foundation and
bedrock upon which the development of stable human
community has depended on throughout the whole universe such as rural and urban
communities. It is concerned with the husbandry of crops and animals for food
and other purpose. The study of the history of economics provides us with ample
evidence that can agricultural revolution is a fundamental pre-condition for
economic development. The agricultural sector has the potentials to be the
industrial and economic springboard from which a country’s development can take
off than not, agricultural activities are usually concentrated in the less
developed rural areas where there is a need for rural transformation,
redistribution, poverty alleviation and socio-economic development.
The
agricultural sector has the potentials to shape the landscape, provide
environmental benefits such as conservation, guarantee sustainable management
of renewable natural resources, preserve biodiversity and contribute to the
viability of rural areas development. Through its spheres of activities at both
the macro and micro levels, the agricultural sector is strategically positioned
to have a high multiplies and linkage effect on any nation’s quest-economic
for and industrial socio development.
The growth of
the agricultural sector in Nigeria was not smooth. Anyanwu (1967) held that
during the colonial period between 1861 to 1960, attention was given to
agricultural research and extension services. Among the activities that were
done was the establishment of a research station in Lagos by Sir Claude
Mc.Donald in 1893: Landmark of 10.4 km was acquired by the British Cotton
Growing Association (BCGA) in 1899 for experimental purpose strictly for cotton
and was named “Moor PlantatioIbadan.In”1912,inthe
Department of Agriculture was established in each of the
then southern and Northern Nigeria, but the activities of the department were
virtually suspended between 1912 and 1921 as a result of the First World War
and its aftermath. The period between 1929 and 1945 was a difficult one for the
agricultural sector of Nigeria. This was the period of great depression when
the world princes on commodities fluctuated. This affected the agricultural
sector negatively because the volume of agricultural product increased but the
value did not increase proportionally.
The period 1945 to 1945 marked the
period of expert boom, because counties were just recovering from the Second
World War and these countries needed to develop. They depended on primary
production for the beginning stage of industrialization. They needed to
revitalize their industrial sector by demanding primary goods. Prices of
primary products rose higher again because there were speculations that there
would be a third world war due to the outbreak of the Korean War.
However, after this period,
there came another period of price instability. This made the reliance on
agriculture and its products to fall, leading to the establishment of a market
board. This board bought these products from the local farmers and sold them
overseas. In spite of all the period, Nigeria made great revenue from
agriculture. In the pre-independence era, the agricultural sector contributed
most to the GDP of Nigeria. Helleiner (1966) said that in 1929, export production
amounted to 57% of Nigeria’s revenu contributed about 80% of the export. On
attainment of political independence in
1960, the trend was still very much the same, the Nigeria economy could
reasonably be described as an agricultural economy, because agriculture served
as the engine of growth of the overall economy (Ogen 2003). According to Alkali
(1997) Nigeria was the world’s second largest producer of of palm oil during
the period. And was also a leading exporter
of other major
commodities such as
cotton, groundnut, rubber and hides and skins.
Between 1964 and 1965, agricultural output accounted for 55% of GDP and
employed 70% of the adult workforce (Matton, 1981).
In 1970, agricultural export crops like
cocoa, groundnut, cotton, rubber, palm oil, palm kernel, etc. accounted for an
average of between 65% and 75% of Nigerian foreign exchange earnings and
provided the most important source of revenue for the federal as well as state
government through expert products and sale taxes (Ekund are 1973). Despite the
reliance of Nigerian peasant farmers on traditional tools and indigenous
farming methods, these farmers produced 7 exports and 95% of its food needs
(Lawal, 1997).
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