Benefits of Financial Credit among Smallholder Farmers in Plateau State, Nigeria

الموضوعات :

Kareem Waheed ¹ (Department of Agricultural Extension and Rural Development, Faculty of Agriculture, University of Ilorin, Kwara State, Nigeria)
Adefalu Lawal ² (Department of Agricultural Extension and Rural Development, Faculty of Agriculture, University of Ilorin, Kwara State, Nigeria)
Daudu Kamal ³ (Department of Agricultural Extension and Rural Development, Faculty of Agriculture, University of Ilorin, Kwara State, Nigeria)
Dolapo Abiola ⁴ (Department of Agricultural Extension and Rural Development, Faculty of Agriculture, University of Ilorin, Kwara State, Nigeria)
Alabi Ahuoiza ⁵ (Department of Agricultural Extension and Rural Development, Faculty of Agriculture, University of Ilorin, Kwara State, Nigeria)

تاريخ الإرسال : 01 الثلاثاء , جمادى الثانية, 1443 تاريخ التأكيد : 08 الجمعة , شعبان, 1443 تاريخ الإصدار : 27 الأربعاء , شعبان, 1443

الکلمات المفتاحية: Productivity, Credit, Income, Keywords: Access, Collateral,

ملخص المقالة :

AbstractThe smallholder farmers in the developing countries are struggling to remain in agribusiness due to inadequate access to agricultural finance. It was against this background that this study analysed the benefits of financial credit among smallholder farmers in Plateau State, Nigeria. The specific objectives were to: (i) describe socio-economic characteristics of the farmers; (ii) determine the sources of credit available to the farmers; (iii) examine the perceived benefits of credit obtained by the farmers; (iv) identify the factors influencing accessibility of credit to the farmers; (v) ascertain the constraints to credit accessibility among the farmers. Two-stage random sampling technique was used to select 120 respondents. A structured interview schedule was used to elicit information from respondents. Data collected was analysed using descriptive statistics, and spearman rank correlation analysis. The results of this finding revealed that mean age of the farmers was 45 years. Majority of the farmers (43.3%) had secondary education. Preponderance (84.2%) of respondents practiced farming as primary occupation. Most (89.2%) of the respondents sourced their credit from money lenders. Increase in income and ability to send children to school were perceived benefits of credit obtained by the respondents. The farmers’ access to credit was significantly influenced by farming experience, farm size, level of education and annual income. The study therefore recommended that government should make adequate and timely provision for soft loans among the potato farmers since most of the farmers sourced their loans from money lenders which attracts high interest rate that may kill potato business.

المصادر:

1. Akinbode, S. O. (2013). Access to credit: Implication for Sustainable Rice Production in Nigeria. Journal of Sustainable Development in Africa, 15(1),13-30.


2. Bassey, N.E., Asinya, F.A., and Amba, E.A. (2014b). Bank Credit Finance and Macro Economic Determinants of Industrial output in Nigeria, 1980-2010. International Journal of Human Social Sciences, 4 (6), 113-119.


3. Central Bank of Nigeria, CBN (2018). Development Finance: Agricultural Credit. Retrieved 29th April, 2018, from Central Bank of Nigeria https://www.cbn.gov.ng/devfin/acgsf.asp


4. Jenapati M, & John J. (2009) Impact of Agricultural Credit on agricultural production: An empirical analysis in India Occasional papers, 30(2), 75-107.


5. Enya, V. & Alimba, J. (2008). Analysis of factors affecting the supplyof commercial banks credit to the agricultural sector in Nigeria. Continental journal of Agricultural Economics, 2:74-77.


6. (2019). Food and Agricultural Organization of the United Nations. FAO Statistical Database. Retrieval date January 5, 2019, from World Wide Web http://www.potatopro.com/world/ potato-statistics. http://www.fao.org/faostat/en/data.


7. Marris, P. (2018). Dilemmas of social reform: poverty and community action in the United States: Routledge.


8. Matthew,O.A., Osabohien, R., Ogunlusi, T.O. & Edafe, O. (2019). Agriculture and Social Protection for Poverty Reduction in ECOWAS. Cogent Arts Human. 6, 1682107.


9. Muhammad, A., Gindi, A.A., Gona, A. & Kaka, Y. (2016). Partial Economic Analysis of Irish Potato Production under Kebbi State Agroecological Conditions. International Journal of Life Sciences Scientific Research, 2 (2), 183-190.


10. National Root Crop Research Institute (NRCRI) (2005). Research Highlight. N. R. C. R. I Umudike, Account Divisions Retrieval 3^rd October, 2013 from www.nrcri.org/pages/ipotato.htm.


11. Nermin, B. & Eray, C. (2020). Determining of agricultural credit impact on agricultural production value in Turkey. Ciência Rural, Santa Maria, v.50:11, e20200003, 2020. https://doi.org/10.1590/0103-8478cr20200003.


12. Nevin, A.S., Oyaniran, T., Onomia, O. (2019). Feeding 398 Million People in Africa's Largest Economy by 2050 Food Security Challenges and Agricultural Innovations. PricewaterhouseCoopers(PWC) Limited. https://www.pwc.com/ng/en/assets/ pdf/feeding-africas-largest-economy-2050.pdf.


13. Ogheneruemu, O. & Dominic, M.G. (2020). Irish Potato Farming in Plateau State, Nigeria: A Profitability Analysis. Journal of Business and Social Sciences. 11 (1), 1-19. Published by Covenant University, Ogun State, Nigeria.


14. Okeke, C.C., & Ikponmwosa, A. (2012). Factors hindering the accessibility of agricultural credit by farmers in Edo State, Nigeria. Journal of agriculture and social research (JASR) 12, (1), 142-148.


15. Okonkwo, J.C; Amadi, C.O. & Nwosu, K.I. (2009). Potato Production, Storage, Processing and utilization in Nigeria. (2nd ed.). Umudike: NRCRI.


16. Okonkwo, J. C. Ene, L.S. O & Okoli.O. O (1995). Potato production in Nigeria, national Root crops research institute, Umidike, Umuahia, Abia State, Nigeria. Pp 1-109.


17. Olaitan, M. A (2006). Finance for small and medium enterprises: Nigeria’s agricultural credit guarantee scheme fund. Journal of International farm management, 3(2), 1-9.


18. Oluwamayokun, A. F. (2018). Smallholder Agricultural Finance in Nigeria: Literature Review on The Research Gap. International Journal of New Technology and Research (IJNTR) ISSN:2454-4116, 4(8), 26-33.


19. Osabohien, R. Ngozi, A., De Alwis, T. (2020). Agro-financing and food production in Nigeria. Heliyon Journal . 6: 1 – 8. CellPress.


20. Osabohien, R., Osuagwu, E., Osabohien, E., Ekhator-Mobayode, U., Matthew, O., Gershon, O.


21. (2020a). Household access to agricultural credit and agricultural production in Nigeria: A propensity score matching model. South African Journal of Economic and Management Sciences (SAJEM). 22(1), a2688.


22. Tadesse, B., Bakala, F. & Mariam, L. W. (2018). Assessment of postharvest loss along potato value chain: the case of Sheka Zone, southwest Ethiopia. Agriculture & Food Security, 1– 14. https://doi.org/10.1186/s40066- 018-0158-4


23. Taiy, R. J., Onyango, C., Nkurumwa, A. & Ngetich, K. (2017). Socioeconomic Characteristics of Smallholder Potato Farmers in Mauche Ward of Nakuru County, Kenya, 5(5), 257–266. https://doi.org/10.13189/ujar.201 7.050502.


24. World Bank. (2018). Population Estimates and Projections. Databank.