THE ROLE OF AGRICULTURAL SUBSIDIES IN REDUCING POVERTY AMONG FARMERS IN KOGI STATE

The persistent challenge of rural poverty in Nigeria necessitates targeted interventions to improve farmers’ livelihoods and income sustainability. In Kogi State, agricultural subsidies have been implemented as a key poverty reduction strategy, yet their overall effectiveness remains insufficiently explored. This study examined the role of agricultural subsidies in reducing poverty among farmers in the state. The specific objectives were to: (i) examine the extent to which agricultural subsidies affect the income and livelihoods of farmers; (ii) determine alternative or complementary strategies to agricultural subsidies geared towards poverty reduction; and (iii) identify the challenges and limitations of implementing agricultural subsidy programmes in Kogi State. Anchored in the Agricultural Household Model (AHM), the study adopted a survey research design with a sample of 390 respondents selected through multistage sampling. Data were collected using structured questionnaires and analyzed using descriptive statistics and inferential methods. Findings revealed that agricultural subsidies have a significant positive impact on farmers’ income and livelihoods, with beneficiaries reporting an average 30% increase in income, which enhanced food security, education, and healthcare access. The majority (85%) of farmers experienced income growth, while 90% indicated that combining subsidies with complementary measures—such as training, market linkages, and access to credit—would yield greater poverty reduction outcomes. The study also identified key factors influencing programme effectiveness, including access to credit, capacity building, market integration, farmers’ education, and programme implementation efficiency. However, several challenges were reported, such as limited awareness, bureaucratic bottlenecks, high interest rates, inadequate infrastructure, and constrained funding, which collectively reduced the programme’s reach and impact. The study recommends that policymakers adopt a multi-pronged approach by integrating agricultural subsidies with training, improved market access, and affordable credit schemes. It further suggests enhancing farmer awareness, reducing administrative barriers, improving rural infrastructure, and ensuring transparent, well-coordinated programme implementation. Strengthening these areas will increase the sustainability and poverty-reducing impact of agricultural subsidies among farmers in Kogi State.