The conflict between farmers and herders is affecting agricultural productions in Nigeria. One of the worst hit are rural households who face the dilemma of renting less or more croplands. Risks are involved in either of the decisions. But a sustainable government policies against the conflict could restore confidence of the farmers and increase production.
This paper investigates the influence of the risk perception of farmer−herder (FH) conflicts on rural households’ production decisions. Extending the farm household model to include the risk perception of farmer−herder conflicts, we test hypotheses derived using primary data from 401 rural households in Nigeria. Results indicate that higher risk perception of FH conflict reduces fertiliser use and increases the time allocated for farm work. Dividing households based on their risk aversion, we find that risk-averse households rent-in significantly less cropland compared to risk-taking households. Findings highlight the need for policies that sustainably tackle FH conflicts for improved agricultural production.