Assessment of Agricultural Credit Sources and Accessibility in Nigeria

Ukwuaba, Ikenna Charles

doi:10.15414/raae.2020.23.02.03-11

Cited by 5 publications

(3 citation statements)

References 10 publications

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“…When agricultural base loans arrive at the wrong season to a farmer, he/she may put it into other uses in order to secure the money from complete uselessness. This finding is still in agreement with Ukwuaba et al (2020), who claimed that farmers access credit for several reasons, such as farming, trading, education, feeding, etc., and positing that the reason for diverting agro credits to other uses was that the credits do not arrive at the right season to farmers, but must be used and pay back at the due time.…”

Section: Level Of Awareness Of the Sources Of Agricultural Credits To...supporting

confidence: 90%

Challenges of Accessing Agricultural Credits by Farmers for Increased Food Production in Delta State, Nigeria

B¹,

Johnny²,

C.O³

et al. 2022

IJAES

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The study investigated the challenges of accessing agricultural credits by farmers for increased food production in Delta State, Nigeria, the specific objectives were to: examine the level of awareness of the sources of agricultural credits to farmers in the study area, ascertain the extent of accessibility of such agricultural credits to farmers, and identify the challenges facing farmers in accessing agricultural credits in Delta State. Descriptive survey design was adopted to assess the farmers. Purposive sampling technique was used to select three LGAs and a total of nine (9) communities while 32 respondents from each of the 9 communities were randomly selected given a total of two hundred and eighty-eight (288) respondents and used for the study. Weighted mean scores derived from the Likert type rating scale was used to analyze the data collated for the study, while the Analysis of Variance (ANOVA) was engaged for test of significance at 0.05% level of significance. The findings showed that the farmers were highly aware of Personal savings (GM = 2.49), Cooperative societies (GM = 2.47), Government bodies (GM = 2.28), Micro Finance bank (GM = 2.28) and Commercial Agriculture Credit Scheme (GM = 2.18) among others as sources of agricultural credits in Delta State. It indicated that Personal savings, Loan from Cooperative societies, Bank of Agriculture (BOA), Micro Finance Bank and the Commercial Agriculture Credit Scheme among other formal and informal sources of agricultural credits were highly accessible to farmers in the area. Finally, it showed in the degree of seriousness that: Lack of trust by the lending institutions (GM = 3.32), Poor leadership vision in agriculture (GM = 3.25), Lack of awareness of available agro credits (GM = 3.22), Low perception of farming enterprise by the people (GM = 3.20), High interest rate (GM = 3.05), Not having the required savings with the lending institution (GM = 3.02), beside others were the most serious challenges confronting farmers in accessing agricultural credits in Delta State. All the test results (ANOVA) showed no significant difference among the three LGAs at P > 0.05 significant level. The study therefore, recommended that: Extension Services should be beefed up in the State to cover the gaps of unawareness of agro credit sources and teach farmers how to access them, Extension agents should be encouraged to supervise and recoup government agricultural loans from farmers to facilitate the flow of agricultural credits in the State, State Government should show concern and make policies that would relax the collateral security to enable the poor farmers access to credits as at when due, and A drastic measure should be put in place by government to punish defaulters who bridge the revolving loans from circulation in the State.

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Section: Level Of Awareness Of the Sources Of Agricultural Credits To...supporting

confidence: 90%

Challenges of Accessing Agricultural Credits by Farmers for Increased Food Production in Delta State, Nigeria

B¹,

Johnny²,

C.O³

et al. 2022

IJAES

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“…The educational level of the respondents is also a huge advantage that could translate to efficient management of the resources and improved farm income level. The result corroborates the findings of Ukwuaba et al (2020) who reported a high educational status among crop farmers in Enugu Ezike Agricultural Zone of Enugu State, Nigeria. The majority (63.33%) of the respondents engaged in crop production while few (9.33%) were involved in livestock production in the study area.…”

Section: Socio-economic Characteristics Of the Respondentssupporting

confidence: 90%

Smallholder Farmers’ Access to Agricultural Insurance Schemes: An Analysis of the Inhibitors in Kogi State, Nigeria

Okpukpara

Adebayo

Ukwuaba

2021

Turkish JAF Sci.Tech.

Self Cite

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The study examined the constraints of access to the use of agricultural insurance schemes (AIS) by small-scale farmers in Kogi State, Nigeria. Sustainable agricultural enterprise in most developing countries like Nigeria can be achieved through adequate financing especially in the area of agricultural insurance. Despite the existence of insurance services by the Nigerian Agricultural Insurance Corporation and other private firms in Nigeria, there has been a low level of participation of farmers buying insurance premium; thus, there is a need to examine the hindrances in accessing the scheme. The specific objectives were to describe the socio-economics characteristic of small- scale farmers, examine the types of agricultural insurance and evaluate the constraints in accessing AIS in the study area. Primary data were collected from 150 farmers with the aid of a well-structured questionnaire. Data were analyzed using descriptive statistics. Results showed that farmers in the study area were dominated by the married (68%), literates (81.33) and males (73.33%) with the mean age and farming experience of 47 and 19 years respectively. Crop insurance (56%) and farm implement insurance (46%) were the major types of agricultural insurance used by the farmers. Rigorous procedures in claim settlement (3.266), poor government attention (3.106) poor repayment (3.080) and non-coverage of all the crops (3.093) were among the major challenges in accessing AIS) in the study area. The study recommended that the government through the ministry of Agriculture or Bank of Agriculture should eliminate the bureaucratic processes and bottlenecks encountered by the farmers in accessing AIS.

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“…A few factors have been identified as influencing factors on farmers' agricultural credit accessibility to practice CA (Table 3). Age has a negative impact on credit accessibility, as reported in previous studies [89][90][91]. In this research, farmers with an average age of 47 years old could access credit more easily compared to those with an average age of 55 years old.…”

Section: Factors Influencing Agricultural Credit Accessibility For Ca...supporting

confidence: 59%

Identifying Credit Accessibility Mechanisms for Conservation Agriculture Farmers in Cambodia

Men,

Hok,

Seeniang

et al. 2024

Agriculture

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As the expected cost of conservation agriculture (CA) inputs becomes an issue for farmers, financial institutions (FIs) play an essential role in promoting CA, a set of agricultural management practices with multiple positive effects. This research aimed to determine influencing factors, to rank challenges, and identify mechanisms for farmers to access agricultural credit for adoption of CA management practices in Cambodia. It was administered by conducting a survey of 242 randomly selected households for face-to-face interviews and conducting key informant interviews from purposive samples of 28 participants in Battambang and Preah Vihear provinces. The results indicated that influencing factors, including the family, adult labor and total farm size, had a positive relationship with farmers’ accessibility to agricultural credit, whereas age was negative. However, education year, farm size for main crops, on-farm income and farm experience were not significantly associated. High interest rates were the significant first-order challenge ranked, followed by document process complication, limited agricultural credit information, limited collateral security and a few other challenges. Support and improved process mechanisms to enhance credit accessibility are required to engage with multiple stakeholders, including farmers, FIs, non-government organizations (NGOs) and government officers. There has been a reduction in agricultural credit interest rates and incentives for importing CA inputs by the government, while provision of information support for agribusiness plans by NGOs which have implemented development project activities were considered as the main support mechanism. An improved process mechanism at the farmers’ level needs to include access to credit with low interest rates and a straightforward documentation process, whereas the FI level requires a business plan for lending decisions. It is evident that high lending rates hinder access to agricultural credit and the improvement of support and improved process mechanisms are necessary to better promote CA practices among farmers in Cambodia.

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Assessment of Agricultural Credit Sources and Accessibility in Nigeria

Cited by 5 publications

References 10 publications

Challenges of Accessing Agricultural Credits by Farmers for Increased Food Production in Delta State, Nigeria

Challenges of Accessing Agricultural Credits by Farmers for Increased Food Production in Delta State, Nigeria

Smallholder Farmers’ Access to Agricultural Insurance Schemes: An Analysis of the Inhibitors in Kogi State, Nigeria

Identifying Credit Accessibility Mechanisms for Conservation Agriculture Farmers in Cambodia

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