Effects of Micro-Credit Scheme on Rice Production among Smallholder Farmers in Kwali Area Council, Abuja

Abstract

This study examined the effects of microcredit schemes on rice production among smallholder farmers in Kwali area council Abuja, FCT. A survey research design was employed in the study. A total of 100 respondents were used in the study and they were sampled using a multi-stage sampling technique. Primary data was used for the study, and these were collected using well–structured questionnaires Regression analysis based on Cobb-Douglas model was conducted to check how micro-credit influences productivity. Based on the findings, it was discovered that 60% of the respondents were male, 52% were married with an average household size of 5 persons. Results further revealed that 70% of the respondents had 5-15 years of farming experience, and 45% of the respondents had secondary education. The main source of credit accessed by the smallholder farmers is the cooperative society. The study revealed as follows; educational level, household size, farming experience and access to credit were the significant variables that increased rice production among smallholder farmers. This study recommends that commercial banks should ensure that agricultural loan is giving priority, especially to smallholder farmers, as this will enhance the increase in quantity and quality of rice production.

Comparative Impact of Formal and Informal Microcredits on Poverty Alleviation in the Haor Region of Bangladesh: A Socioeconomic Analysis

“…On the other hand, few scholars [26][27][28][29][30] established the negative impact of micro-credit on the livelihoods of borrowers in different forms such as on credit trap, group formation as risk sharing mechanism. Many scholars [15, 26,31,27,32,33,34] identified mixed effect of micro-credits on the livings of borrowers in terms of reduction of poverty, financing, increase of asset, income, consumption, revenue net worth, savings etc. considering the different types of borrowers, amount of loan, terms and conditions of loan and period.…”