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Abstract
This study analysed compensation of farmers affected by crude oil spillage in Delta State. The study evaluated the causes, channel, mode and procedure of compensation; estimated the monetary value of compensation to cassava farmers affected by crude oil spillage; and developed a model for compensation. Data obtained were analysed using net farm income, contingent valuation technique, capitalization of earnings and compounding technique. Findings of the study showed that the prevalent cause of crude oil spill as reported by the oil firms and farmers were third party interference and equipment failure respectively. The channel of compensation was through the community leaders to affected farm families. Compensation was based on tangibles only without considering the intangibles and the future implication of the spills. The developed model of compensation incorporated the tangibles, intangibles and future income stream from the farm land. The study concluded that the procedure for compensation omitted some significant components.