The Influence of Credit and Socioeconomic Characteristics of Food Crop Farmers on output in Yola South Local Government Area of Adamawa State, Nigeria (original) (raw)
Related papers
Russian Journal of Agricultural and Socio-Economic Sciences, 2016
This study examined access to formal credit facilities among small scale crop farmers in Gwagwalada Area Council, Abuja, Nigeria. The specific objectives of this research were to: identify the socioeconomic characteristics of sampled small scale crop farmers in the study area; examine sources and accessibility of credit to the sampled small scale crop farmers in the study area, evaluate factors influencing accessibility of credit among the sampled small scale crop farmers in the study area and identify problems encountered by farmers in accessing credit. Primary data were used for the study. Systemic random sampling technique was adopted; one hundred (100) respondents were selected. The data were collected and analysed using descriptive statistics and Logit Regression Model (LRM). The study showed that eighty seven (87) percent of the sampled small scale crop farmers were male. About eighty six (86) percent of the respondents had their age range from 30-60 years. Eighty three (83) percent of the respondents were married. Furthermore, eighty one (81) percent had formal education. The study further showed that thirty one; (31) percent of farmers obtained credit facilities from banks. The result of Logit regression model showed that farm size, membership of cooperative and household distance from source of credit had significant positive influence on access to formal agricultural credit among the respondents in the study area at P<0.05; P<0.01; and P<0.01 levels respectively. Delay in approval and disbursement of credit, lack of collateral security as well as too much bank procedures and requirements constituted the major constraints in accessing formal agricultural credit among the respondents in the sample area. The study recommends that credit should be disbursed to farmers with minimum delay; formal credit institutions should be widely spread and situated in places close to farmers. Also farmers should be encouraged by relevant government agencies to seek ways of increasing their farm size and rural farmers should be encouraged to join cooperative associations as this can increase their chances of accessing formal agricultural credit facilities.
Assessment of Agricultural Credit Sources and Accessibility in Nigeria
Review of Agricultural and Applied Economics
Rural and small holder famers in Nigeria and other developing countries have low capital base and poor access to finance. The inability of these farmers' access to adequate credit has increased the problem of low efficiency in production. Inadequate credit supply is a major problem with which other production factors may exert negative influence on farmers' output and efficiency. In ascertaining the sources and accessibility of credit by crop farmers in Enugu-Ezike in Enugu State, Nigeria, the sources of credit to farmers, the socioeconomic characteristics of crop farmers' that have access to credit, access to credit constraints and possible ways of improving farmers' access to credit were investigated. Primary data collected through the administration of questionnaire were analysed using descriptive statistics and probit regression. Results showed that most crop farmers obtained credit mainly for farming and have accessed credit through informal sources, with friends and relatives being the most popular source. Majority of the farmers, who obtained information about credit through phone calls agreed that there were no delays in loan approval. Although, probit regression revealed that the independent variables (gender, age, marital status, education, household size, farm size, membership of cooperatives and farming experience) were not significant in jointly affecting access to credit at all probability levels, however, membership of cooperatives had an individually negative significant relationship with access to credit at the 10% (p<0.10) level. Recommendations that will improve access to credit include: increasing farmers' access to information; reducing loan acquisition rigidity; reducing interest rate; having bank account; establishment of community and agricultural banks in the rural areas with simple procedures for securing loans; and the mobilization of farmers into groups to maximize the benefit of collective investment or group savings.
The purpose of this study was to analyse rural farm households' access to formal agricultural credit in Yola South Local Government Area of Adamawa state, Nigeria. Descriptive and inferential statistics were used to analyse the primary data collected using structured questionnaire (from 140 rural farming households). Findings from the study have shown that, 90 % of the respondents were male, mostly educated (70 %) and married (89 %) engaging in farming as their primary livelihood activity (about 81 %) with an average farm size of 2.47 hectares. The result of the binary logit regression has shown that level of education and income do influence access to credit positively, while age and distance to access point negatively influence respondents' access to formal credit. The study further revealed that, lack of acceptable collateral / security, high interest rates, low financial literacy, and complex banking procedures were the main factors that limits the respondents' access to credit facility from formal sources. In order for farmers to have an improved access to formal credits, the formation of strong groups that are viable to provide the needed capital is encouraged, banking operations should be simplified to suite farmers' needs / convenience and financial literacy among farmers should be improved through awareness campaigns (in agricultural extension packages).
An Impact Assessment of Agricultural Credit on Rural Farmers in Nigeria
Research Journal of Finance and Accounting, 2013
In Nigeria, despite the fact that agriculture have significant contribution to the economy, it has not been given adequate attention as required. Data were collected from the primary sources and a total of 500 questionnaires were administered of which 300 copies were properly completed and retrieved. The study appraised the impact assessment of agricultural credit on rural farmers in Nigeria and generally discovered that much is yet to be done to boost agriculture by encouraging farmers via adequate agricultural credit without strings. The results also indicate that unregulated private money lenders (53.33%) constitute the major source of credit which is not healthy for an economy that is ready to grow. It was equally clear that the much needed banks in the rural areas are mainly found in the urban areas leaving the rural farmers without formal sources of credit. The major limitations or challenges in accessing agricultural credit as found in the report include; high interest rates, bureaucratic bottlenecks, late approval of loans, unnecessary request for guarantors and collateral. It was however recommended that the federal Government in collaboration with banks should create credit instruments and services that are tailored to the risk and cash flow patterns in the agricultural sector to avoid or reduce the level of the aforementioned challenges.
Determinants of Access to Credit among Rural Farmers in Oyo State, Nigeria
This study examined the determinants of credit access by rural farmers in Oyo state Nigeria. Specifically the study identified the socioeconomic characteristics of the rural farmers, examined the factors affecting access to credit by the rural farmers, identified constraints faced by rural farmers in credit acquisition. Data were collected with the aid of structured questionnaires, administered on 210 respondents using multistage sampling procedure. The data were analyzed with the use of descriptive statistics and logit model. The sigma values of the binomial (σ 2 = 90.32) logit model that measured the significance of model showed that the data fit the model reasonably well. The binomial logit model revealed that significant relationships existed between sex (-2.0187), marital status (-1.9786), lack of guarantor (2.1517), high interest rate (6.8263) and access to credit. The variables were significant at 10%. It is concluded that there is need for financial institutions to help look into the conditions for obtaining credit by farmers, so that the less privilege among them will be able to benefit from credit disbursement especially in the aspect of high interest rate, guarantor and collateral security.
An analysis of farmers access to formal credit in the rural areas of Nigeria
African Journal of Agricultural Research, 2012
This study examines the factors that influence farmers access to formal banking credit in the rural areas of Nigeria. The data used was collected from rural areas of Katsina State. This study used probit modelling approach to analyse the factors that influence farmers' accessibility to formal credit. This study found that the level of income, collateral, educational attainment and marital status have significant positive influence on farmers' access to formal credit, while age and sex have insignificant positive influence on the farmers' access to credit. On the other hand, interest rate and transaction cost have significant negative influence on the farmers' access to formal credit. Thus, this paper concluded that with the prevailing banking arrangement in Nigeria, rural farmers have little or no access to credit from conventional banks. Therefore, the study recommended the use of both group lending arrangement and character lending, so that farmers in the rural areas could be reached with formal credit.
This study examined the factors that contributed to the agricultural credit accessibility and repayment ability among rural tuber crops farmers in Oyo State Nigeria. The study specifically described the socioeconomic characteristics of the respondents, sources of credit, conditions for obtaining credit and effects of socioeconomic characteristics on repayment of credit. Random sampling technique was used to select 144 respondents in the study area, and the structured questionnaire was administered to collect data. Descriptive statistics and logit model was used in analyzing the data. The results showed that a higher percentage (56.9%) of both categories of tuber crops farmers were within the age bracket of 30-50 years. About 74.3% of those that obtained credit were male farmers. Majority of the respondents (91.7%) were married. 38.9% of the farmers have formal education. Only 48.7% of the farmers have secondary occupation. Most of the farmers have the family sizes between 6-10 people and most of the farmers had been practicing and cultivating tuber crops for at least 10-50 years. Most of these farmers are cultivating yam and cassava only a few are planting cocoyam as major or mixed crop. Majority of the farmers source for credit from cooperative societies, commercial bank, SPFS and friends.
The study assessed credit accessibility of rural farmers in Benue State using Bank of Agriculture (BOA) as a case study. A sample size of 724 respondents was selected through a proportionate random sampling technique. The sample is made up of 362 beneficiaries and non-beneficiaries each. The study used both descriptive and legit regression. Findings from the study showed that the rural farmers (that is, even beneficiaries) have moderate level of accessibility to the BOA loan with high level of inadequacy in terms of the volume of the loan granted to the farmers, while most of the non-beneficiaries have informal financial institutions as their main source of income. The study also showed that gender, age, marital status, household size, main occupation of the respondents, the status of off-farm activity, membership of farmers' group, years of farming experience, crop yield of farmers, land area cultivated, years of education and lending interest rate are the socioeconomic factors that have significant influence on the farmers' access to BOA loan in the study area. The study therefore recommends that government should establish more formal credit institutions in the rural areas, generally; and revive the moribund branches of BOA in the state, create more awareness about the existence of formal agricultural credits for agricultural production among the farmers, and enlightenment campaign on how to access these credit facilities especially in the rural areas and ensure enough disbursement of funds through BOA to enhance the level of credit facilities.
IOSR Journal of Agriculture and Veterinary Science, 2014
This research work analyzed the source of agricultural credit to small holder farmers in Ezeagu Local Government Area of Enugu State, Nigeria. This research described the various farm enterprises in the area. It determined the socio economic characteristics of the farmers, sources of credit to the farmers and the problems farmers face in loan procurement and repayment. The research showed that most farmers are married and preferred to borrow from institutions. Most of them fell at the age range of 45 years with family size of 6-10 children. Most of the farmers had informal education and operated 1-3 hectares of land for food production. The research also showed that the farmers engaged in crop production as the main enterprise and animal production as source of meat. Farmers obtained their loan from both formal and informal sources. The credit was used to increase productivity by purchasing new varieties of farm input, acquire piece of land, etc. Problems encountered by the farmers include high interest rate, illiteracy, diversion of fund, long time of loan increase their farm produce at low interest rate and with consideration of the enterprise type for period of repayment.
Advances in Social Sciences Research Journal, 2018
The focus of this study is to examine the determinants as well as impact of agricultural credit accessed by farmers in Oyo State on productivity, using Ibarapa region as a case study. Descriptive statistics, Probit model and Regression analysis as estimation techniques were used and data were sourced through structured questionnaire. The results obtained from the probit model shows that the model is well fitted for the analysis by revealing the factors that influence farmers’ access to Microfinance bank loan while the results obtained from the regression model revealed that the independent variables engaged in the equation for crop enterprise namely, farm size, labor cost, cost of seeds and amount of credit obtained have positive impact on productivity. Also, Chow-test result shows that the output of Microfinance bank credit beneficiaries is significantly different from that of non-beneficiaries of Microfinance bank credit. Based on the findings, it is recommended that savings mobil...