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Analysis Of Credit Facilities To Small Scale Farmers
[A CASE STUDY OF SMALL-SCALE FARMERS IN BENDE LOCAL GOVERNMENT AREA OF ABIA STATE]
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1.2 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.
1.3 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.
1.4 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.
1.5 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.
1.6 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.
1.7 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.
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ABSRACT - [ Total Page(s): 1 ]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 ... Continue reading---
