Analysis of Maize Production among Beneficiaries and Non-Beneficiaries of Microfinance Bank Loan in Akure-South Local Government Area, Ondo State, Nigeria

Y.E. Ajibade, N. M. Onoja, J. O. Salifu and A. B. Odesanmi

Nigerian Journal of Agricultural Economics, 2022, vol. 12, issue 01

Abstract: The study analyzed maize production among beneficiaries and non-beneficiaries of Microfinance Bank loan in Akure-South, Ondo State, Nigeria. It described the socio-economic characteristics of the respondents, compared the differences in outputs, estimated their costs and returns, identified other forms of loan-scheme, identified constraints faced by loan beneficiaries and identified reasons why non-beneficiaries were not obtaining loan. A multi-stage sampling technique was adopted using a well-structured questionnaire to elicit information from hundred (100) maize farmers. Descriptive statistics, t-test, Gross margin and 3-point Likert scale were used for data analysis. Most (76.0%) of the respondents were married, 49.0% were within 40-59 years and 90.0% were formally educated. There was no significant difference between the outputs of beneficiaries and non-beneficiaries. Beneficiaries earned an average total revenue of ₦645,843.60 per hectare per cropping season and incurred a total cost of ₦379,598.34 per hectare per cropping season while non-beneficiaries earned average total revenue of ₦404,976.00 per hectare per cropping season and incurred a total cost of ₦248,815.45 per hectare cropping season respectively. Undue delay (Mean score=2.0), low volume of loan (Mean score = 2.18) were the constraints of beneficiaries. High interest rate (90%) and collateral (86%) constituted the reasons why non-beneficiaries were not obtaining micro-finance loan. Therefore, beneficiaries need timely loan disbursement with low interest for higher output and profitability.

Keywords: Agricultural Finance; Production Economics (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/348739/files/5-Aiibade%2C%20et%20al..pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:naaenj:348739

DOI: 10.22004/ag.econ.348739

Access Statistics for this article

More articles in Nigerian Journal of Agricultural Economics from Nigerian Journal of Agricultural Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().