ANALYSIS OF CREDIT FACILITIES TO SMALL SCALE FARMERS (A STUDY OF SMALL-SCALE FARMERS IN BENDE LOCAL GOVERNMENT AREA OF ABIA STATE)


ANALYSIS OF CREDIT FACILITIES TO SMALL SCALE FARMERS (A STUDY OF SMALL-SCALE FARMERS IN BENDE LOCAL GOVERNMENT AREA OF ABIA STATE)  

ABSTRACT

Inadequate support in terms of credit facilities from government and financial institution has been identified as one of the major problem affecting farming operation particularly that of the small scale farmers in Nigeria. This study analyzed the impact of credit facilities to the operation of small scale farms in Nigeria using BENDE Local Government as a case study. Questionnaires were used to source the data used in carrying out this research. The research design employed for this study was a descriptive survey design, in order to achieve an accurate representation of the entire population. The study makes use of simple random sampling technique as the method of data analysis. However, one strong outcome of this study is that the poor state of credit facilities to small scale farmers in Nigeria has drastically affected farming operation, thus, reduction in agricultural output, leading to importation of Agricultural product. Credit facilities therefore plays a crucial role in the operation of small scale farming, this ensures the derived output which sustain the growth and development of the economy.

TABLE OF CONTENT

Title Page i

Approval Page ii

Dedication iii

Acknowledgement iv

Abstract vi

Table of Content vii

Chapter One

1.0 Introduction - - - - - - - - - -1

1.1 Background of the Study- - - - - - - -1

1.2 Statement of Problem - - - - - - - -3

1.3 Objective of the Study - - - - - - - -4

1.4 Statement of Hypothesis - - - - - - - -4

1.5 Scope of the Study - - - - - - - - -5

1.6 Justification of Study - - - - - - - -5

1.7 Organisation of Study 6

Chapter Two Literature Review

Introduction7

Conceptual Issues9

Overview of Credit Scheme to Farmers in Nigeria9

Empirical Literature Review44

Conclusion45

Chapter Three

3.0 Research Methodology - - - - - - - -47

3.1 Introduction - - - - - - - - - -47

3.2 Research Design - - - - - - - - -47

3.3 The Research Population - - - - - - - -48

3.4 Sampling Frame and Sampling Unit - - - - - -48

3.5 Sampling Method - - - - - - - - -49

3.6 Sample Size - - -- - -- - - - -- -49

3.7 Method of Data Collection - - - - - - -49

3.8 Method of Data Analysis - - - - - - - -49

Chapter Four

Results and Discussion of Findings

Introduction --------51

Demographic Data --------51

Presentation of Selected Variable Based on Descriptive Statistics55

Research hypothesis-------61

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary - - - - - - - - - 64

5.2 Conclusion - - - - - - - - - 65

5.3 Recommendation - - - - - - - - 65

Bibliography - - - - - - - - - -68

Journals - - - - - - - - - - -71

Questionnaire - -- - - - - - - - -73

List of Tables

Table 4 – 1: Distribution of respondents by sex Table 4:2: Distribution of respondents by Age

Table 4:3: Distribution of respondents by marital status Table 4.4: Distribution of respondents by Religion

Table 4:5: Distribution of respondent by Educational Qualification. Table 4.2.6: Respondent cost on farm operation per year.

Table 4.2.7: Respondent income received externally to finance farm operation yearly

Table 4.2.8: Respondent duration to access credit facilities needed to finance farm operation.

Table 4.2.9: Respondent Assessment of the state of credit facilities of small scale farmers

Table 4.2.10: Respondent percentage of interest rate favourable to them Table 4.2.11: Respondent benefit from subsidies within the past years Table 4.3.1: Response on research question

CHAPTER ONE

6 INTRODUCTION

BACKGROUND OF THE STUDY

Agriculture according to Longman Dictionary of Contemporary English (New Edition) is the science or practice of farming.

Agriculture has a key role to play in the economic development of Nigeria, it is a leading sector in any meaningful economic development being carried out by any nation such as ours. Agriculture as its output tends to contribute significantly in the areas like employment opportunities, provision of food to the increasing population, contribution to GDP where the country is able to earn foreign exchange, also the provision of raw materials to our local industries particularly the agro-allied industries for further production.

An overview of Nigerian agricultural sector during 1960’s revealed that agricultural sector was the most important to the economy. In fact, the generation of this period can still remember those days when the pyramid of groundnut was the pride to the northern region and cocoa production areas of the west also boosted the foreign earning from cocoa exports. Today, the nation is still not independent in terms of agriculture providing food for its people to feed on.

Credit is an important instrument for improving the welfare of the poor directly through consumption smoothening that reduces their vulnerability to short-term income. It also enhances productive capacity of the poor through financing investment in their human and physical capital. The demand for credit for productive investments usually comes from the poor who are less risk-averse and it enables them to overcome liquidity constraints, making it possible to undertake investments that can boost production, employment and income. Financial intermediaries have not been able to accommodate small-scale farmers because it is risky and a different task associated with high transaction costs. Lack of information prevented large formal leaders who had capacity to serve the small- scale farmers and the poor from doing so. It is undisputable that small-scale farmers have always had a problem of access to credit facilities. To improve the access, improvements need to be made in the provision of financial services. In order to implore financial services, leaders need to consider the preferences and socio-economic condition of clients. This contributes to both regulatory process as well as product development – thus, an understanding of characteristics influencing farmers’ decision to use agricultural credit could assist policy formulation that could enhance welfare of the poor or those excluded from access to credit facilities.

The poor performance of Nigerian agriculture and its attendant effect prompted government to seek and reverse the situation which was demonstrated in the policies and practice such as National Accelerated food production programme (NAFPP), Operation Feed the Nation (OFN), Green Revolution Programme (GRP), Accelerated Crops Production Programme Scheme (ACPS) and international organisation like the World Bank. This includes some of the steps taken by the Federal Government of Nigeria to assist farmers to boost agricultural production in the country.

STATEMENT OF THE PROBLEM

In spite of the remarkable contribution of the agricultural sector to the GDP, findings over the years here shown that government subsidies directed at the agricultural sector have drastically reduced and as such the dwindling fall in agricultural productivities and by extension agricultural development. In Nigeria, as in most developing countries, “lack of credit facilities has been regarded as the major constraint farmers face when they try to improve economic activities and/or living conditions” (Britain, 1986: Biswanger et al, 1993: Agbor, 2004). Even when available, access to credit facilities is difficult to access by farmers in the rural area

despite the fact that it is an essential input in production (FARM, 2006). This could be adduced to lack of information and collateral securities among farmers.

Furthermore, the behaviours of financial institutions set up to finance agriculture revealed that funds necessary to induce agricultural productivity has not been geared toward agricultural sector. Commercial banks in particular are skeptical towards financing agricultural activities and in most cases do not offer friendly interest rate to encourage farmers to acquire loans. This research study shall examine the analysis of credit facilities to small scale farmers in Nigeria.

OBJECTIVES OF THE STUDY

The specific objectives of the analysis of credit facilities to small scale farmers are:

i. To analyze the impact of credit facilities to the operation of small scale farmers in Nigeria.

ii. To identify and analyze the socio-economic characteristics that may influence farmer’s decision about whether or not to use credit.

iii. To examine the probability that non-borrowers can borrow given that socio- economic characteristics are increased.

STATEMENT OF HYPOTHESIS

Given the nature of this research work there is need to formulate a reasonable hypothesis:

H0: credit facilities are not significant in the operation of small scale farmers in Nigeria.

H1: Credit facilities are significant in the operation of small scale farmers in Nigeria.

SCOPE OF THE STUDY

The scope of this study shall cover the role of credit facilities to small scale farmers in Bende L.G.A in Abia state. This study shall encompass the nature, the structure of availability of each facility as well as measurement of relative accessibility to small scale farmers in Nigeria.

JUSTIFICATION OF STUDY

The concern of credit facilities as a factor input has been amplified by different experts and government itself has the potentials of opening new doors of opportunities in the development of small-scale farming in Nigeria.

There are few studies on the subject of small scale farm credit and how their socio- economic characteristics influence their decision about whether or not to take credit. The development of the sector is not feasible if an avenue of credit facilities is not provided. Therefore, this research work is directed at providing insight into this less studied dimension in agriculture by eliciting and analyzing small scale farmers’ socio-economic factors that affect their decision about credit facilities, and also to evaluate the nature, structure and pattern of credit facilities to small scale farmers in Nigeria.

ORGANISATION OF STUDY

This study is divided into five chapters. Chapter one contains the introduction of the study, chapter two deals with the review of relevant literature and theoretical framework, while chapter three presents the research methodology which embodies specification of estimating techniques. Chapter four reveals the presentation and discussion of results and findings, while summary of findings, conclusion and recommendation are provided in chapter five.

.


TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.COM

Researchwap.com is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.com guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.com is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.com" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.