This paper examined the effect of Sugarcane Out-growers’ Scheme on the livelihood of Farmers in the Savannah Sugar Company Numan Region. A total of 247 out-growers were selected from six-farm block using the quota sampling technique while 370 non out-growers were selected using Saunder’s method of sampling. Lorenz curve was used to find the inequality of income among participants while percentage distribution was used to examine the socio-economic characteristics of the respondents. Results of the study showed that, 90% of the out-growers were aged between 34-57 years. It was also observed based on the result that 81% of the out-growers were married and 47.77% of the respondents were involved in farming activity which is the major livelihood activity engaged by occupants of the area. The results also showed that 86.23% of the respondents have secondary and ‘A’ level education. Results on the Lorenz Curve showed that 35% of the out-growers accounted for 60% of the total income in the study area and require 25% of the wealth distribution to attain perfect equality distribution. While 30% of the non out-growers accounted for 60% of the total income distribution and require 30% of the wealth distribution to attain perfect equality. This therefore showed that, there is inequality in income distribution among the both the out-growers and non out-growers. The study therefore recommended appropriate modality in selection of participants and that out-growers and stakeholders in the agricultural sector should focus on providing more extension services to smallholder farmers.
Key Words: Effects, Out-growers scheme, Savannah sugar company, Livelihood and Lorenz Curve
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