ACQUISITION AND UTILIZATION OF AGRICULTURAL CREDITS BY POULTRY FARMERS IN EDO SOUTH AGRO- ECOLOGICAL ZONE, EDO STATE, NIGERIA
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Abstract
This study examined the acquisition and utilization of agricultural credits by poultry farmers in edo south agroecological zone of Edo state. The specific objectives were to examine the socioeconomic characteristics of the respondents in the study area, to examine the major sources and amount of agricultural credit to poultry farmers in the study area, to ascertain the uses in which the accessed credit was put into in the study area, compare production level and profitability between beneficiaries and non-beneficiaries of credit in the study area. Other objectives were to identify the determinant to the access and utilization to credit of poultry farmers as well as to examine the constraints faced by poultry farmers in acquiring and utilizing
agricultural credit. A three stage selection technique was employed in this study. Data for this study were obtained from both primary and secondary sources. Primary data were obtained through the use of
structured questionnaire administered through interview schedule to one hundred and twenty (120) randomly selected respondents from the study area and ninety-six (96) were retrieved for analysis. Data obtained were analyzed using descriptive statistics, regression analysis and students' t-test. Results from the descriptive statistic showed that majority of the respondents were male (65.6%), and large percentage were married (53.1%). The mean age and mean household size were 42.0 years and 4.5 members respectively. The result also showed 95.9% of the respondents had between primary to tertiary education, while about 4.1% had no formal education. The result also
showed that majority (79.1%) of poultry farmers had other source of income. The result showed that 93.8% of the poultry farmers in the study area had years of experience between 0 to 10 years. The results showed that minority (31.3%) of the poultry farmers in the study have benefitted from agricultural credit at an average amount of N159,166.67, mostly from cooperatives and that credit acquired was used for agricultural production activities with feed being the most
utilized for at 63.5% with a mean amount of N109,600.00. The credit utilized had significant effect (difference is at a level of 5% using the t-test) on the production level and profitability of the beneficiaries. Result from the multiple regression analysis revealed that age, education level and marital status were significant predictors of farmers to acquire agricultural credit. The problems encountered by the farmers in acquiring credit included high interest rates, lack of collateral and demand for guarantor amongst others. The significance of acquired credit on the production level and profitability of beneficiaries of credits further reveals its importance in the production activities of small scale farmers and as such efforts should be made by the
government and non-institutional sources to ensure that rural farmers have access to adequate credit facilities in order to increase their farm income.
agricultural credit. A three stage selection technique was employed in this study. Data for this study were obtained from both primary and secondary sources. Primary data were obtained through the use of
structured questionnaire administered through interview schedule to one hundred and twenty (120) randomly selected respondents from the study area and ninety-six (96) were retrieved for analysis. Data obtained were analyzed using descriptive statistics, regression analysis and students' t-test. Results from the descriptive statistic showed that majority of the respondents were male (65.6%), and large percentage were married (53.1%). The mean age and mean household size were 42.0 years and 4.5 members respectively. The result also showed 95.9% of the respondents had between primary to tertiary education, while about 4.1% had no formal education. The result also
showed that majority (79.1%) of poultry farmers had other source of income. The result showed that 93.8% of the poultry farmers in the study area had years of experience between 0 to 10 years. The results showed that minority (31.3%) of the poultry farmers in the study have benefitted from agricultural credit at an average amount of N159,166.67, mostly from cooperatives and that credit acquired was used for agricultural production activities with feed being the most
utilized for at 63.5% with a mean amount of N109,600.00. The credit utilized had significant effect (difference is at a level of 5% using the t-test) on the production level and profitability of the beneficiaries. Result from the multiple regression analysis revealed that age, education level and marital status were significant predictors of farmers to acquire agricultural credit. The problems encountered by the farmers in acquiring credit included high interest rates, lack of collateral and demand for guarantor amongst others. The significance of acquired credit on the production level and profitability of beneficiaries of credits further reveals its importance in the production activities of small scale farmers and as such efforts should be made by the
government and non-institutional sources to ensure that rural farmers have access to adequate credit facilities in order to increase their farm income.
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