Determinants of Access to Credit among Rural Farmers in Oyo State, Nigeria
rural, farmers, credit, socio-economics, logit., logit, Rural
Abstract
This study examined the determinants of credit access by rural farmers in Oyo state Nigeria. Specifically the study identified the socio-economic 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.
Downloads
How to Cite
References
A. Adegeye, J. Dittoh (1985) Essential of Agricultural Economics.
R. Adegboye (1989) Community Development Instrument for improving Quality of Rural Life. 1, 53-56.
C. Baker, Hopkins J.A (1979) Concept of finance capital for capital using Agriculture. 5, 1056-1064.
J. Galbraith (1952) The Role of Agricultural Credit in Agricultural Development. 1.
E. Harsch (1994) Getting cash into Rural Areas" The African Farmer. 94, 2.
M. Ijere (1986) Farm finance, Farm management, Farm input and subsidies. 97-108.
P. Onaksaponome, E. (1992) Bank Loan Requirement and Availability for Nigerian Small Farmers - A comparative Analysis of Experience. 1, 49-61.
A. Kitbur (1990) Diversion of Agricultural Loan of Formal Institutions. 45.
J. Mbata (1991) An Evaluation of Institutional Credit and Its Role in Agricultural Production in River State of Nigeria. 5-22.
R. McNamara (1973) The Assault on World Poverty, Problems of Rural Development Education and Health.
L. Miller, Osuntogun (1975) Present and potential use of credit by small maize and rice farmers in western and Kwara States Nigeria.
F. Olagunju, A. Ajiboye (2010) Agricultural lending decision: a tobit regression analysis. 10(5). https://doi.org/10.4314/ajfand.v10i5.57897
F. Olagunju, R. Adeyemo (2000) Evaluation of the Operational Performance of the Nigerian Agricultural Credit Cooperative and Rural Development Bank (NACRDB) in South-Western Nigeria. 1(1).
S. Olajide (1981) Meaning and purpose of Rural Economics" Elements of Rural Economics.
A. Olomola (1997) Agricultural Finance. 51-62.
A. Osuntogun (1980) Some aspects of farm level credit use in Nigeria. SR, 106.
M. Rahji (2000) An analysis of the Determinants of Agricultural Credit Approval and Loan Size by Commercial Banks in South-western Nigeria. 1(1), 6-25.
W. Shephard (1979) Market Power and Economic Welfare.
T. Shultz (1964) Transforming Traditional Agriculture. 45.
Taylor, H. T.G. Drummond, Gomes A.T (1986) Agricultural Credit Programme and Production Efficiency.
J. Von-Pischke (1991) A critical survey of approach to the role of credit in smallholder development. Discussion paper institute for development studies, university of Nairobi.
World Bank (1996) Nigeria Poverty in the Midst of Plenty.
Published
2013-03-06
Issue
Section
License
Copyright (c) 2013 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.