Determinants and Welfare Effects of Crop Diversification Among Farming Households in Plateau State, North Central Nigeria

Crop diversification represents a multi-functional household strategy that simultaneously addresses risk management, nutritional security, and income generation objectives. In Plateau State, the high agricultural diversity potential of the Jos Plateau environment offers opportunities for diversification, yet the determinants and welfare effects of diversification strategies among farming households remain empirically unexamined. This study investigated the determinants and welfare effects of crop diversification in Plateau State using primary data from 225 farming households selected through multistage sampling. The Simpson Diversity Index was computed as the diversification measure. Tobit regression identified diversification determinants, while a propensity score matching approach estimated welfare effects using per capita consumption expenditure and dietary diversity as outcome measures. Results showed that farm size, market access, off-farm income, and extension contact were positive determinants of diversification, while distance to markets and household dependency ratio had negative effects. Diversification was associated with a significant 19 percent improvement in dietary diversity scores and a moderate 14 percent improvement in consumption expenditure per capita. The study fills an empirical gap on diversification welfare effects in the unique agro-ecological context of Plateau State. Policies facilitating input market access and extension advisory services on diversification enterprises are recommended. Keywords: crop diversification, welfare effects, Simpson Index, Plateau State, propensity score matching.