Sustainable agricultural practices and household welfare among smallholder farmers in southwest, Nigeria

Abstract Sustainable agricultural practices (SAPs) are increasingly promoted as a pathway to improving agricultural productivity, enhancing climate resilience, and advancing the welfare of smallholder farming households. However, evidence on whether SAP adoption translates into measurable welfare gains remains inconclusive because adoption decisions are potentially endogenous and sustainable farming behaviour is inherently multidimensional. This study investigated the determinants of SAP adoption and its effect on household welfare among 211 smallholder farming households in Ogun State, Nigeria. Primary data were collected through a multistage sampling procedure. A Poisson regression model was employed to identify factors influencing SAP adoption intensity, while exploratory factor analysis was used to develop a composite SAP adoption index. The welfare effect of SAP adoption was subsequently estimated using an instrumental variable probit (IV-Probit) model with distance to the nearest extension service centre as an instrument to address potential endogeneity. The results showed that education, farming experience, membership of farmer associations, land ownership, and awareness of SAPs significantly increased adoption intensity, whereas age and access to credit reduced adoption. After correcting for endogeneity, greater adoption intensity significantly reduced the probability of household poverty, confirming that SAP adoption improves household welfare. Membership of farmer associations and access to credit further reduced the likelihood of poverty, whereas larger household size and marital status increased poverty risk. The findings demonstrate that promoting the adoption of multiple sustainable agricultural practices can simultaneously enhance rural livelihoods and support sustainable agricultural development. Strengthening extension services, improving farmers' awareness, securing land tenure, reinforcing farmer organizations, and aligning rural credit with sustainable agricultural investments are critical policy priorities for accelerating SAP adoption and improving household welfare among smallholder farmers.