Determinants of approved pesticides adoption and its effects on the welfare of cocoa farmers in Nigeria

Abstract

The use of banned pesticides has contributed to reduced cocoa bean prices through export rejections, market restrictions, and price discounts imposed on produce that fails to meet international residue standards, with adverse consequences for the welfare of cocoa farmers. This study examined the impact of approved pesticide adoption on the welfare of cocoa farmers in Osun State, Nigeria. A multistage sampling technique was employed to select 224 cocoa farming households, of which 200 valid responses were used for analysis. Data were analyzed using the Endogenous Switching Regression Model (ESRM). The ESRM treatment effect estimates suggest a positive association consistent with a causal interpretation, indicating that adoption of approved pesticides is linked to improved farmers’ welfare through higher farm income and increased per capita consumption expenditure. Specifically, the results show that adoption of approved pesticides is associated with a 0.670 increase in per capita consumption expenditure and a 0.366 increase in farm income per hectare among adopters. The findings suggest that promoting approved pesticides may improve farmer welfare by enhancing cocoa farmers’ income and overall well-being. Therefore, policies that encourage the adoption of approved pesticides among cocoa farmers are likely to substantially improve their standard of living.