The determinants and impact of access to agricultural credit on productivity by farmers in Nigeria; Evidence from Oyo State, Nigeria
Journal Title: Advances in Social Sciences Research Journal - Year 2018, Vol 5, Issue 3
Abstract
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 mobilization by the Microfinance banks should be encouraged, and long loan repayment period of about two years coupled with low interest rate of at most 5% should be pursued. In addition, farmers should be insured against losses and microfinance bank credit programme should be gender sensitive as women have been reported to be equally efficient in farming activities like their men counterparts. Finally, Microfinance bank should inculcate into their credit programme, input availability (fertilizer, seed, medication etc) which will to a great extent increase agricultural productivity.
Authors and Affiliations
Ajayi Samson, Olalekan Obademi
Keywords
Related Articles
- EP ID EP274682
- DOI 10.14738/assrj.53.3588
- Views 66
- Downloads 0
N. Hawthorne's The Scarlet Letter The Trial of Religion
The trial of religion is a controversial field of research, where questions pertaining to the re-thinking of rigid pseudo-religious dogmas should be addressed and re-examined to fit the modern age and account suitable to...
Perceived Health Implications Of Harmful Traditional Practices On The Health Of Women Among Women Of Uruan Local Government Area Of Akwa Ibom State, Nigeria
The purpose of the study was to determine the perceived health implications of harmful traditional practices on health of women among women of Uruan Local Government Area of Akwa Ibom State, Nigeria. The study adopted de...
Foregrounding The Image Of Islamic Arab National Identity
This research is set to foreground the historical legacy of the Muslim Ummah identity in general and the Arab identity in particular. The paper begins with the history and origin of the Arabs. The paper focuses on the im...
An Assessment Of The Relationship Between Motivation And Teachers’ Job Mobility In Ondo State, Nigeria
in Ondo State, Nigeria. The study adopted a descriptive research of the survey type. The population consisted of all teachers of public secondary schools in Ondo State. Multistage sampling procedures were used to select...
Poverty and the Political Economy of Baby Merchandizing in Nigeria
The correlation between poverty and societal ills is underscored in the myriads of evils plaguing human societies including Nigeria. One of such ills, baby trading, that had hitherto been tagged a taboo in Nigeria especi...