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Analysis Of The Problems Of Agricultural Credit To Farmers
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CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Farmer
need productive resources and these resources are acquired with owned or
borrowed fund. Agriculture is very important to the economic of most
developing countries of the world and because of this, a supply of
adequate farmer finance is essential for natural well bring.
Since agriculture is the backbone of the Nigeria economy providing
employment to about 70% of its population yet this important sector has
suffered healect since the oil boom days. Agriculture has totally
declined since the early 1970s Nigeria export crops such as groundnut,
palm oil and external have evaluate disappeared and the country is a net
importer of food crops. Agriculture recorded growth rate in 1975 at
about 2.6% while the population grew at about 70% compared to 57-7% in
1993 economic growth summit (1995) the small scale farmers according to
the national agricultural policy document for Nigeria (N.A.P.O.N)
constitute over 90% of the food and fiber requirement of Nigeria on the
other hand large scale farmers produce has than 1% of farm out put in
Nigeria but they tend to have greater access to farmer inputs including
farm credit or loan.
STATEMENT OF THE PROBLEM
This study is
to investigate the analysis of the problem associated with obtaining
credit for financing agricultural production in Edo state. It would be
seen that many problems arise the most for mixable problem encounter by
the farmers in the area.
1. The inability of the farmers to meet the
collateral security acquired by the commercial bank is a major problem
hindering agricultural sectors. This is as a result where farmers have
nothing to deposit in the process of obtaining credit for agriculture.
2.
High interest rate is another factor that discourage farmers from
obtaining credit in most commercial banks, payment of interest involve
when fund is borrowed.
3. The low educational background of the farmers also constitutes hindrance in obtaining agricultural credit.
4. Credit facilities are not easily accessible to small scale farmers.
5.
The bureaveratie native involved in the process of obtaining credit ot
loans for agricultural purpose have not being encourage on the part of
the farmers. It is on the note that the researcher intends to identify
some of the hindering factors in order to proffer solution.
OBJECTIVE OF THE STUDY
The main aim of the this study is to find the major problems of
obtaining credit or loan for financing agricultural production in
Nigeria with particular reference to Edo state. The objectives of the
study are:
1. To identify the problem militating against adequate financing of agriculture.
2. To enumerate and analyze the agricultural credit granted to farmers in recent years.
3. To know how much the commercial banks have help in financing agriculture.
4. To look how agriculture has developed especially in Edo state.
5. To create awareness of the problem posed by agricultural financing inadequacies.
6. To investigate how these problems can be tackled.
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ABSRACT - [ Total Page(s): 1 ]The ever determining food production in Nigeria has prompted development or administration (military and civilian) both present and past to formulate programmed to ameliorate or arrest this situation.One of such programmed is the agricultural credit facilities scheme, which is being implemented through commercial banks. Sequel to this the researcher examined the problems of obtaining loan for financing agricultural production in Edo state. ... Continue reading---
