Analysis of Factors Influencing Access to Formal Loan Among Small-scale Swamp Rice Farmers in Obubra Local Government Area, Cross River State, Nigeria
International Journal of Agricultural Economics
Volume 4, Issue 6, November 2019, Pages: 307-313
Received: Dec. 23, 2019; Accepted: Jan. 3, 2020; Published: Jan. 17, 2020
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Authors
Kuye Olufemi Oludayo, Department of Agricultural Economics and Extension, Faculty of Agriculture and Forestry, Cross River University of Technology, Obubra Campus, Obubra, Nigeria
Ogiri Oyom Mbina, Department of Agricultural Economics and Extension, Faculty of Agriculture and Forestry, Cross River University of Technology, Obubra Campus, Obubra, Nigeria
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Abstract
This study analyzed the factors influencing access to formal agricultural loan among small-scale swamp rice farmers in Obubra Local Government Area in Cross River State, Nigeria. Data were obtained from 120 respondents by using multi-stage random sampling technique. Descriptive statistics and logit regression model were used to analyze the data. The results showed that majority (62.5%) of the farmers were males, about 40% were aged between 31-40 years, married (68.33%), had household size of 7-9 persons (51.67%), had secondary education (51.67%), had farm sizes of 1-2ha (50.83%), had farming experiences of 11-20 years (45%) and only 30.83% had annual farm income of between N51,000.00 and N100,000.00. The logit regression analysis revealed that gender, farm income, household size, education and collateral positively influenced the probability of farmers’ access to loan at 1% significant level respectively. Marital status, farming experience and farm size positively influenced access to loan at 5%, 5% and 10% respectively The major constraints respondents faced in accessing loan are long period of processing loan applications, problem of getting collateral and high interest rate while the major constraints they faced in rice production are crop destruction by cattle, low yield as a result of pests and diseases and low yield as a result of poor soil. The Federal Government should enact law that will motivate the cattle herders to compensate any farmer whose crops have been destroyed or eaten by their cattle and banks should process loan applications on time so that the loan will be disbursed to farmers at the appropriate time.
Keywords
Analysis, Factors, Access, Formal, Loan, Swamp Rice
To cite this article
Kuye Olufemi Oludayo, Ogiri Oyom Mbina, Analysis of Factors Influencing Access to Formal Loan Among Small-scale Swamp Rice Farmers in Obubra Local Government Area, Cross River State, Nigeria, International Journal of Agricultural Economics. Vol. 4, No. 6, 2019, pp. 307-313. doi: 10.11648/j.ijae.20190406.19
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Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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