AGRICULTURE IN STOCK EXCHANGE.

What is stock exchange?

Stock exchange can be defined as a place or market

where people buy and sell shares, stock and other
securities like bond.

STOCK
A stock is a financial asset issued by a Public Company
which conveys ownership rights to the holders in the
company called ‘shareholders’.

SHARES
These are equal units into which the financial assets of
a company are divided. The owners of these shares
are called shareholders. They elect a Board of Directors
to manage the company on their behalf.

PEOPLE INVOLVED IN STOCK EXCHANGE

1. Stock Brokers
These are people licenced to buy and sell shares for
people. They are registered by the Nigerian Stock
Exchange. They normally receive commissions for
shares sold or bought for people.

2. Agents / Representatives(AUTHORISED CLERK).

These are people who are engaged in buying and
selling of shares but are not registered members of the
Stock Exchange.

3. Buyers and Sellers.

These are people who on their own buy and sell share
so as to make profit.

4. Underwriters.
These are usually financial institutions like banks that
buy shares of companies in bulk and retail or sell to the
general public.

Importance of Stock Exchange

1. It encourages investment in agriculture.
2. It encourages contract farming.
3. The health of agricultural enterprise indicated in
the stock exchange quotation will encourage
members of the public to invest in viable agricultural
ventures.
4. It serves as a medium for dissemination of
information to agriculturists.
5. It also helps to evaluate the performance of the
managers of agricultural enterprises.

EXPORT PROMOTIONS IN AGRICULTURE

Export can be defined as the sale of goods and services produced in a
country to foreign countries. Export promotions are the policies of
government that offer encouragement to exporters with a view to
enhance exportation of home made goods and services. Exporters
are usually given many incentives and offered some certain facilities
to encourage more exports.

Export Development.

The basic aim of export promotions is to increase sales of products

that are currently available for export.

Aims of Export Development.

1. It increases the volume of exportable produce

2. It encourages exportation of new products; like cassava flour.

3. It adds value to products.

4. It penetrates new markets that were not accessible before.

NIGERIAN EXPORT PRODUCE

Nigerian Agricultural export produce include;

1. Palm produce

2. Cocoa beans

3. Groundnut oil

4. Rubber

5. Hides and skin

6. Coffee

7. Cotton

8. Cassava; flour, starch, etc.

9. Jute

Importance of export promotions

1. It is a source of foreign exchange.

2. It helps governments to pay foreign debts.

3. It creates additional employment opportunities for people.

4. It increases farmers income.

5. It encourages economic development.

6. It encourages specialisation.
Government Policies that would encourage Exportation of
Agricultural Produce.

1. Funding of research for production of export crops in order to

increase yield and quality of produce.

2. Reduction or total removal of export duties.

3. Extending credit facilities to exporters of agricultural produce.

4. Improvement of communication facilities.

5. Provision of extension services to educate farmers.

6. Assisting farmers through provision of mechanised implements,

storage and processing facilities and subsidies.

7. Sourcing of new markets in the international market for

agricultural produce.

8. Reviving of Market Boards to make bulk purchases for farmers.

LAND TENURE SYSTEM

Land tenure system can be defined as the system of ownership of land or
simply the acquisition of land by an individual, family, community, government
or its agency for either permanent or temporary use.

Land tenure system varies from community to community, and in Nigeria, it is

divided into several classes;

Types of land tenure system.

1. Communal land tenure system.

2. Land tenure by inheritance.

3. Leasehold system.

4. Land tenure by tenancy or rent.

5. Land tenure by purchase or freehold.

6. Land tenure by free gift or pledge.

7. Tenant at the will of government.

COMMUNAL LAND TENURE

In this tenure system, the land belongs to the entire community, which may be
a clan, family or village. Under this system, every member of the community
has the right to use the land for agricultural purposes. He, however, has no
right to sell the land or any portion of it. At the beginning of each planting
season, the head of the community shares the land among the members for
farming purposes. This system is only possible where there is large area of
land.

Advantages of communal land tenure system.

1. Members acquire land at no cost at all.

2. Large scale farming or plantation is possible.

3. Co-operative farming is possible because the land is extensive.

4. Each member of the community has easy access to the farm.

Disadvantages of communal land tenure system.

1. It leads to fragmentation of land.

2. It discourages permanent development of land. e.g. Building of

structures.

3. Economic trees cannot be planted because of re-allocation.

4. It is difficult to introduce farm mechanisation.

5. The land cannot be used as a collateral security to obtain loan from the
bank.

6. Increase in population in the community reduces the land.

7. Non-members of the community who are ever willing to go into

commercial agriculture cannot have access to the land.

8. If the land is to be used for large scale farming, there is usually lack of
co-operation among members.

LAND TENURE BY INHERITANCE.

This is the system of land tenure in which one acquires land by inheriting it
from his/her parent. It gives the owner complete ownership right such that
after acquiring the land, he may decide to farm on it, allows it to fallow, rent it
or even sell it.

Advantages of land tenure by inheritance.

1. The land can be used as collateral to obtain loan from the bank.

2. Land improvement practices are encouraged. eg. Manure application.

3. Economic trees can be planted. eg. Cocoa, orange, mango, oil palm,
rubber, etc.

Disadvantages of land tenure by inheritance.

1. It leads to land fragmentation.

2. Sharing of land among the children is usually a delicate issue which

generates enmity among the family members.

3. Owners are only tied and limited to their plots.

4. Owners usually sell the land denying the future generation the
opportunity of inheriting such lands.

5. The land is readily not available for everybody.

6. Large scale agricultural production is not possible.

LAND TENURE BY LEASEHOLD SYSTEM.

This is the tenure system that allows payment of certain amount of money for
the use of land over a period of time. There is usually an agreement between
the leaser and the leasee for the land to be used for a period of time, usually
from ten years and above. The leasee will exercise his right on the use of the
land and maintenance of the land for the specified period of time.

Advantages of land tenure by leasehold.

1. The land is usually not available to everybody.

2. Farmers are able to maximise the use of land.

Disadvantages of land tenure by leasehold.

1. The land cannot be used as collateral security to obtain loan from banks.

2. Perennial crops cannot be planted on the land.

3. The farmer cannot develop the land beyond the lease agreement.

LAND TENURE BY RENT.

This is a system of land tenure whereby payment of certain amount of money

as ‘rent’ is made for the use of land over a short period of time. At the end of
the period, the agreement can be terminated or renewed as so desired by the
landlord.

Advantages of land tenure by rent.

1. It makes land more available for agricultural purposes.

2. The land is efficiently used and maintained for maximum production

within a short period of time.

Disadvantages of land tenure by rent.

1. The land cannot be used as collateral security to obtain loan from the
bank.
2. The system affects long term planning.

3. There is limitation in the development of the land.

LAND TENURE BY PURCHASE OR FREEHOLD.

This is the system whereby a farmer pays a sum of money to the landlord to
buy a piece of land and the land becomes his personal property. It gives the
owner complete ownership right such that after buying the land, he may
decide to farm on it, allow it to fallow, rent it or even sell it.

Advantages of land tenure by purchase or freehold.

1. The farmer can use the land as collateral security to obtain loan from the
bank.

2. Perennial crops or economic trees can be grown on such lands.

3. Proper planning and development of the land is possible.

Disadvantages of land tenure by purchase or freehold.

1. Purchase of land is usually very expensive, and not many can afford.

2. It is always difficult to establish the actual owner of such lands.

3. The farmer may have insufficient funds to buy exactly the size of land he
needs for his farming operations.

LAND TENURE BY FREE GIFT OR PLEDGE.

This is the type of land ownership where by land is donated out to a person out
of goodwill or free of charge as a sign of appreciation or as an incentive. The
new owner does not pay any money for such lands.

Advantages of land tenure by free gift or pledge.

1. The farmer can use the land as collateral security to obtain loan from the
bank.

2. Perennial crops or economic trees can be grown on such lands.

3. Proper planning and development of the land is possible.

Disadvantages of land tenure by free gift or pledge.

1 The ownership of the land can be challenged anytime.

2. The family of the donor of such land may disagree and cause dispute
over the land.

LAND TENURE BY TENANT AT THE WILL OF GOVERNMENT.

This is the type of tenure where a land that is owned by government is

allocated to a farmer by the government after paying a sum of money to the
government to enable him use the land over a stipulated period of time.

Advantages of land tenure by tenant at the will of government.

1. The land is easily accessible to farmers.

2. It is a cheap means of acquiring land.

3. The land can be improved by applying manure.

4. The land is wisely used for productive purposes.

Disadvantages of land tenure by tenant at the will of government.

1. Permanent crops cannot be planted.

2. The land cannot be used as collateral security to secure loan from the
bank.

3. The allocation of such lands is usually characterized by bottlenecks ,

bureaucracy, as well as its regulation and control.

4. The land can be revoked if the tenant fails to pay the stipulated rent at
the right time.

LAND USE ACT.

In 1978, the Federal Government of Nigeria under the reign of Gen. Olusegun
Obasanjo promulgated a decree governing the use of land in Nigeria. This was
as a result of several problems and inadequacies of land tenure system. This
decree was known as Land use Decree of 1978 or simply, Land Use Act of 1978.
Features of Land Use Act.

1. This decree was promulgated by the Federal Military Government of

Nigeria on March 29, 1978.

2. The decree takes care of the inadequacies inherent in land ownership in

Nigeria.

3. The decree states that all land in the country is vested in the federal
government to be held in trust for the people. That is, acquisition of land
and its uses for whatever reasons are to be controlled by the federal
government.

4. The decrees empower each state to act on behalf of the federal

government in all matters related to land use in the state.

5. It also states that before anyone is legally recognised as owning a piece

of land, he/she must have applied to the government, paid for the land,
and thereafter, be issued with a CERTIFICATE OF OCCUPANCY (C of O) on
the required land.

6. That every Nigerian is qualified to acquire land for use as long as they
attain the age of 21 years.

7. It is a reform essentially aimed at encouraging proper, productive and

efficient use of land.

8. The decree stipulates that individuals can only use a piece of land for 99
years after which the land reverts to the government.

9. It also provides that farmers should not be allocated more than 500
hectares of land for crop production or 5,000 hectares for grazing
purposes.

AIMS OF THE LAND USE DECREE

(a) It encourages proper, productive and efficient use of the land.

(b) It allocates land and creates opportunities for enterprising farmers to

acquire more lands for large scale production.
(c) It facilitates planning or formation of programmes for a particular land
use.

(d) It streamlines and simplifies the management and ownership of land in

the country.

(e) It removes the unpleasant controversies which land had hitherto

generated in Nigeria.

IMPLICATIONS OF THE LAND USE ACT.

(i) With the decree, individual ownership of land, whether developed or

not, now ceases, and the only relationship between an individual and
the land is that of use.

(ii) It also ensures that whoever requires land for any purpose and has the
ability to make optimum use of it will always obtain it. This ensures
enough land for agriculture and industrial use.

(iii) The decree does not dispossess any Nigerian of his acquired property
which is being lawfully and optimally used.

v) The decree is out to prevent the practice whereby land speculators buy
up large plots of land, especially in developed urban locations with absolutely
no intention of immediate use, but merely to tie it down in order to obtain
high prices for it in the event of its acquisition by government or other persons.

(vi) It allows any individual above the age of 21 to apply for Certificate of
Occupancy.

Advantages of Land Use Decree

1. It makes land acquisition relatively easier for new entrants into

agriculture.

2. It reduces the number and frequency of court cases over land

ownership.

3. It has facilitated borrowing of capital for further investment in

agriculture.
4. Availability and provision for large land holdings which encourages large
scale agriculture.

5. It prevents fragmentation of land since land acquired under the decree

cannot be shared into bits.

6. Reduction in boundary disputes since survey of acquired land is

mandatory for occupancy right to be granted.

Disadvantages of land use decree

1. It leads to high cost due to land survey.

2. Land acquisition process has become bureaucratic and often meets with
bottlenecks.

3. It has impoverished many communities whose main assets were their

lands.

4. Land is not necessarily allocated to every potential agricultural

developer.

5. Land may be acquired by influential people for non-agricultural purpose.

REASONS WHY GOVERNMENT SHOULD ENFORCE THE LAND USE

LEGISLATION.

(a) Security of tenureship.

(b) Ensuring proper use of land.

(c) Government projects are made possible.

(d) Land improvement becomes possible.

(e) Influence on size holdings.

(f) Freedom of farming enterprises.

(g) Production is easily controlled.

(h) Reduction of land litigations.