Determinants of Smallholder Farmer Market Participation in Gombe State

Market participation by smallholder farmers is a prerequisite for transforming subsistence agriculture into a commercialised income-generating activity. In Gombe State, in Nigeria's North East geopolitical zone, the degree to which smallholder crop farmers sell a marketable surplus rather than consuming all production varies widely across communities and household types. This study identifies the determinants of smallholder farmer market participation in Gombe State. Using a multi-stage sampling approach, 140 farming households were selected from three local government areas. Market participation was operationalised as the decision to sell any crop output and the volume sold as a proportion of total output. A double-hurdle regression model was applied to account for the two-stage nature of the participation decision. Results indicate that farm size, household head education, and distance to the nearest market are the most significant determinants of the participation decision. Market distance beyond 10 kilometres significantly reduced both the probability and volume of market sales. Use of mobile phones for price information was positively associated with higher market participation volumes. Gender of household head and access to credit were also significant predictors. The study concludes that transaction costs are the dominant barrier to market participation in Gombe State and recommends investment in market infrastructure, rural road access, and agricultural market information systems to facilitate greater smallholder commercialisation. Keywords: market participation, smallholder, Gombe State, transaction costs, commercialisation