ABSTRACT:

The study aimed at the impact of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) on small-scale rice farmers income in selected LGAs of Nasarawa State, Nigeria. The specific objectives were to estimate the profitability of rice farmers, assess the effect of NIRSAL on farmers income, and assess the socio-economic factors influencing the income. A multi- stage sampling procedure was employed for the selection of 177 rice farmers. Primary data were collected with the aid of a well-structured questionnaire and analyzed with the budgeting technique, farmers household income exchange, and quantile regression analysis. The finding shows that rice production is a profitable venture in Nasarawa State, with beneficiaries and non- beneficiaries making a net farm income of ₦2,805,769.64 and ₦1,845,974.71, respectively, per hectare. The result of the Farmer Household Income Exchange value showed a 39% increase in income of beneficiaries. Quantile regression results revealed that at the 25th quantile, the coefficient of household size was positive and significant at a 1% level for non-beneficiaries, while educational level was positive and significant at 10% for beneficiaries. At the 50th quantile, the coefficient of farming experience and farm size was positive and significant at 1% and 10%, respectively, for non-beneficiaries. At the 75th quantile, membership of the cooperative society had a positive coefficient and was significant at 10% for beneficiaries, whereas farming experience had a positive coefficient and was significant at 1%. The study recommended that government at all levels should replicate similar intervention initiatives for greater impact since the NIRSAL scheme was found to be impactful.