Investigating Agricultural Risks in Maize Value Chain under the Anchor Borrowers’ Programme in Cross River State, Nigeria

Aniefiok A. Umoren and Victor E. Inim
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Aniefiok A. Umoren: Department of Agricultural Economics and Extension, University of Uyo, Akwa Ibom State, Nigeria
Victor E. Inim: Department of Accounting, Nile University of Nigeria, Abuja, Nigeria

International Journal of Research and Scientific Innovation, 2020, vol. 7, issue 9, 34-40

Abstract: Maize value chain as agribusiness is susceptible to the changes of nature and exposed to arrays of hazards, risks and uncertainty pest infestation, diseases infection, yields variability and price fluctuation. Several risks mitigation strategies have been incorporated into the Anchor Borrowers’ Programme as to induce investors’ appetites. The objective of study is to examine the adopted risk mitigation strategies under the Anchor Borrowers’ Programme in Cross River State. Qualitative research design which focused on interview and in-depth focussed group discussion used in collecting information from the committed participants purposively drawn from the stakeholders. The results showed that the risks identified in maize value chain in State included production, market price, environmental/climate change and government policy. Risks mitigation strategies adopted by stakeholders included loan process monitoring, confirmation of prepaid insurance premium, equity contributions by farmers, adoption of best agricultural practices and irrigation facilities, certification of inputs supplied and financial capacity of anchors. Results also showed that adopted risk mitigation strategies incorporated risks transfer and coping remediation activities which provide an efficient economic option for increased return on investment. The study recommends improvement in loan officer ratio to loan beneficiary in order to ensure efficient monitoring of the loan process, confirming prepaid insurance premium coupled with appropriate agro-entrepreneurs’ identity management as well as timely cash disbursements. These would not only minimize credit risk but also stimulate increased bank participation in financing investments in maize value chain in the State.

Date: 2020
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