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
Views 455 Downloads 186
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
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.
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.
Adeyonu, A. G., Ajiboye, B. O., Isitor, S. U. and Faseyi, S. A. (2016) An analysis of the factors influencing access to credit by poultry farmers in Abuja, Nigeria. Proceedings of the17th Annual National Conference of Nigerian Association of Agricultural Economists (NAAE) held at Federal University of Technology Owerri 17th - 20th Oct. 2016 pp 25.
DBSA (2005). Development report 2005. Development Bank of South Africa (DBSA), Agriculture in South Africa Second Economy.
Oladeebo, J. O and Oladeebo, O. E (2008). Determinants of loan repayment among smallholder farmers in Ogbomoso Agricultural Zone of Oyo State, Nigeria. Journal of Social Science. 17 (1): 59-62.
Kuye, O. O (2016) Comparative analyses of beneficiaries and non-beneficiaries of bank loan among small-scale cassava farmers in South-South Nigeria (2009-2013). Unpublished PhD thesis submitted to the Department of Agricultural Economics, Management and Extension, Ebonyi State University, Abakaliki, Ebonyi State, Nigeria. pp 19-20.
Murray, W. G (1994) Agricultural Finance: Principles and Practices of Farm Credit. Iowa State College Press, USA.
Nwaru, J. C., Ubon, A. E. and Robert E. O. (2011). Determinants of Informal Credit Demand and Supply among Food Crop Farmers in Akwa Ibom State, Nigeria. Journal of Rural and Community Development: 1712-8277.
Akudugu M. A. (2012). Estimation of the Determinants of Credit Demand by Farmers and Supply by Rural Banks in Ghana’s Upper East Region. Asian Journal of Agriculture and Rural Development 2: 189-200.
Diagne, A. and Zeller, M. (2001). Empirical measurements of household's access to credit and credit constraints in developing countries. Methodological Issues and Evidence, International Food Policy Research Institute, Washington DC.
Echebiri, R. N. and Nwaogu, D. C. (2016) Determinants of credit access by rural farmers in Abia State, Nigeria. Proceedings of the 17th Annual National Conference of Nigerian Association of Agricultural Economics held at Federal University of Technology, Owerri Oct.17-20, 2016. Pp 120-124.
Dittoh, S. (2006). Effective Aid for Small Farmers in Sub-Saharan Africa: Southern Civil Society Perspective. Ghana Case Study.
World Bank (2008) Finance for all? Policies and pitfalls in expanding access. World Bank Policy Research Report. The International Bank for Reconstruction and Development. Washington D. C.
Mohammed, B. T, Achem, B, Abdulquadri, A. and Age, K. T, (2009) “Gender involvement in agricultural production” Proceedings of the 43rd Annual Conference of the Agricultural Society of Nigeria, Abuja. 20- 25 October, 2004 pp 682-685.
Spore (2007) “Family farming: The future of the world” CTA, The Netherlands No 131, October 2007. Pp 1.
International Food Policy Research Institute (IFPRI) (2002) Women: The key to food security. Washington D. C, USA.
World Bank (2001) Attacking Poverty: World Development Report 2000/2001. Poverty Alleviation. IFPRI, Policy Research Working Paper No 15 Washington D. C.
Awotide, D. O and Akerele, E. O (2010) “Commercial agriculture in Nigeria: Prospects, social impacts, constraints and policy issues” Proceedings of the 11th Annual National Conference of National Association of Agricultural Economists (NAAE) held at New Lecture Theatre, School of Agricultural Technology, Federal University of Technology, Minna. 30th Nov- 3rd Dec 2010 pp 1.
Ugbajah, M. and Ugwumba, C. (2013). Analysis of Micro Credit as a Veritable Tool for Poverty Reduction among Rural Farmers in Anambra State, Nigeria. Discourse Journal of Agriculture and Food Sciences, 1 (10): 152-159.
Kormawa, P., Okike, I., Okechukwu, R. and Akande, S. O. (2003). African Food Crisis – the Nigerian case study. Afrint project. Retrieved May 11, 2014 from http://blog.sam.lu.se/afrint/pdf/nigmicro.pdf.
Adeniji, O. B. and Joshua, A. O. 2008. Evaluation of Loan Disbursement and Repayment of Supervised Credit Scheme of Nigeria Agricultural Cooperative and Rural Development Bank (NACRBD) in Zaria and Kaduna North Local Government Areas of Kaduna State, Nigeria. Journal of Agriculture and Social Research (JASR), 8 (2): 89-96.
National Population Commission (2006) National Population Commission 2006 Census Figure, Abuja, Federal Government of Nigeria.
Anozie, R O., Ume, S I, Okelola, O E, Anozie, S N and Ubani, S I (2014) Determinant factors in loan disbursement to yam (Discorea Spp) farmers in Ehime Mbano, Imo State. A case study of Nsu Micro finance Bank, Taraba State. Journal of Agricultural Research. 3: 14 -18.
Oboh, V. U. and Ekpebu, I. D. (2011). Determinants of Formal Agricultural Credit Allocation to the Farm Sector by Arable Crop Farmers in Benue State, Nigeria. African Journal of Agricultural Research.6 (1), Pp. 181-185.
Ameh, M. and Andrew, C. I. (2016) Socio-economic factors influencing agricultural loan acquisition among small-scale rice farmers in Benue State, Nigeria. Proceedings of the17th Annual National Conference of Nigerian Association of Agricultural Economists (NAAE) held at Federal University of Technology Owerri 17th-20th Oct. 2016 pp 91.
Adebayo, C. O, Mohammed, U. S, Yisa, E, S and Beida, A. S (2016) Determinant of access to formal agricultural credit among small-scale cassava farmers in Kogi State, Nigeria. Book of Proceedings of the 17th Annual National Conference of Nigerian Association of Agricultural Economists held in Michael Okpara Federal University of Agriculture, Umudike, Nigeria. Pp. 15-17.