AKSU Journal of Agricultural Economics, Extension and Rural Development

MODELLING THE DETERMINANTS OF INCOME VOLATILITY OF FARM HOUSEHOLDS IN AKWA IBOM STATE

Author:  Udoh, E. J and Akpan, O. D

Abstract
The determinant of income volatility of farm households in Akwa Ibom State is the aim of this study. Primary data were collected from farm households for a period of one year (April 2015 to March, 2016), using structured questionnaire. Income volatility indices were generated and measured from each farming household using Generalized Autoregressive Conditional Heteroskedacity (GARCH) and Coefficient of Variation (CV). The determinants of income volatility were estimated using Ordinary Least Square (OLS). The OLS regression result for both GARCH and CV reveals that; household size, educational status, and farm size, number of income activities, normalized farm and non-farm income, cost of inputs, household expenditure on food and non-food items significantly influences income volatility at varied probabilities level. (1%, 5% and 10%) and affects income of farm households. It was recommended among others that, yearly measurement and monitoring of income volatility of farming households should be carried out by government and other development agencies in Akwa Ibom State.