Assessment of the Role of Agricultural Cooperatives in Smallholder Farmer Income in Benue State

Agricultural cooperatives are regarded as critical instruments for improving the income levels of smallholder farmers across sub-Saharan Africa, yet their actual impact in specific Nigerian contexts remains incompletely documented. This study assessed the role of agricultural cooperatives in enhancing the income of smallholder farmers in Benue State, North Central Nigeria. A descriptive survey design was adopted, with structured questionnaires administered to 200 smallholder farmers drawn from ten registered cooperative societies in Makurdi, Gwer-West, and Katsina-Ala Local Government Areas. Data were analysed using descriptive statistics and the Student's t-test to compare income levels before and after cooperative membership. Results showed that cooperative members earned a mean monthly farm income of 42,500 naira compared to 27,800 naira for non-members. Access to shared farm inputs, collective marketing, and group credit facilities were identified as the primary channels through which cooperatives improved member income. However, 47 percent of respondents reported irregular dividend payments, and 38 percent expressed dissatisfaction with the transparency of financial management within their cooperatives. Poor record-keeping and inadequate managerial training were cited as major limitations. The study concludes that agricultural cooperatives in Benue State contribute meaningfully to smallholder income but are constrained by governance weaknesses. Recommendations include mandatory cooperative management training, adoption of simple bookkeeping systems, and regular audits by the Benue State Ministry of Commerce and Cooperatives to strengthen institutional integrity.

Keywords: agricultural cooperatives, smallholder income, Benue State, cooperative membership, North Central Nigeria