Factors Related to Capital Formation in Pre-Cooperative Farmer's Groups

Abstract

The monthly proportional rate of change in capital formation by six farmers' groups in the Ile-lfe area was taken as a measure of economic growth and studied over time and in relation to certain group features.

There were seasonal fluctuations in the rate of contribution, with the more successful groups being those which varied their rates according to the availability of money. Economic growth was not related to group size, group farm size, or per capita contribution, but was related to meeting attendance. Thus, it is questionable whether existing registration requirements such as group size, size of operations, or amount of capital are appropriate at a time when government aims to develop cooperatives as instruments of agricultural growth. A methodology for examining the issue on a wider scale, and desirable alternative government approaches are suggested.