The Effect of Agroclimatic Factors on Cash Crops Production in Nigeria

This study examined the effects of agroclimatic factors on the yield of cash crops in Nigeria and other variables such as producer prices, exchange rate and level of national income (GDP). The effects of total rainfall, mean temperature, sunshine hour, relative humidity, radiation, exchange rate and GDP on the yields of three cash crops (Cocoa, Palm Kernel and Palm Oil) were estimated for the period 1970-2003 in Nigeria. The methods of analysis employed in the study were mainly error-correction model (ECM) within the context of co-integration theory. The results showed that all the variables are not stationary at their levels and thus, a need for differencing once to attain stationary. Statistical significance of the error-correction terms for the three produce validates the existence of an equilibrium relationship among the variables in each of these co-integrating vectors. However, producer price, temperature and GDP were the most significant factors influencing the yield of cocoa while only exchange rate was the most significant factors for the
palm produce