Analysis of Rural Farm Households' Access to Formal Agricultural Credit in Yola South Local Government Area, Adamawa State, Nigeria

Amurtiya Michael, Yuniyus Dengle Giroh, Mark Polycarp and Zubairu Emmanuel Ashindo
Additional contact information
Yuniyus Dengle Giroh: Department of Agricultural Economics and Extension, Modibbo Adama University of Technology, PMB 2076, Yola, Nigeria
Mark Polycarp: Department of Agricultural Economics and Extension, Modibbo Adama University of Technology, PMB 2076, Yola, Nigeria
Zubairu Emmanuel Ashindo: Department of Agricultural Economics and Extension, Taraba State University, Jalingo, Nigeria

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2018, vol. 66, issue 4, 947-954

Abstract: The purpose of this study was to analyse rural farm households' access to formal agricultural credit in Yola South Local Government Area of Adamawa state, Nigeria. Descriptive and inferential statistics were used to analyse the primary data collected using structured questionnaire (from 140 rural farming households). Findings from the study have shown that, 90 % of the respondents were male, mostly educated (70 %) and married (89 %) engaging in farming as their primary livelihood activity (about 81 %) with an average farm size of 2.47 hectares. The result of the binary logit regression has shown that level of education and income do influence access to credit positively, while age and distance to access point negatively influence respondents' access to formal credit. The study further revealed that, lack of acceptable collateral / security, high interest rates, low financial literacy, and complex banking procedures were the main factors that limits the respondents' access to credit facility from formal sources. In order for farmers to have an improved access to formal credits, the formation of strong groups that are viable to provide the needed capital is encouraged, banking operations should be simplified to suite farmers' needs / convenience and financial literacy among farmers should be improved through awareness campaigns (in agricultural extension packages).

Keywords: access; formal agricultural credit; rural; farm-households; farmers; Adamawa state; Nigeria (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://acta.mendelu.cz/doi/10.11118/actaun201866040947.html (text/html)
http://acta.mendelu.cz/doi/10.11118/actaun201866040947.pdf (application/pdf)
free of charge

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:mup:actaun:actaun_2018066040947

DOI: 10.11118/actaun201866040947

Access Statistics for this article

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis is currently edited by Markéta Havlásková

More articles in Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis from Mendel University Press
Bibliographic data for series maintained by Ivo Andrle ().