Discourse Journal of Agriculture and Food Sciences
Volume 5 Issue 5 Page 66 - 73. August 2017

Copyright 2017 Discourse Journals


Performance of Agricultural Loan Scheme among Small Farmers in Anambra State, Nigeria

Obichukwu Charles, Muojekwu Angela, Obiekwe Josephine  and Ugwumba Celestine

1Department of Agricultural Economics and Extension, Chukwuemeka Odumegwu Ojukwu University, Igbariam Campus, Anambra State, Nigeria
2Department of Agricultural Economics and Extension, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria


Abstract

The need to assess the performance of Anambra State Agricultural loan scheme, ensure proper utilization and repayment of the loans, and better life for the farmers necessitated this study. The study assessed the amounts of loan applications, approvals, disbursements and repayments; influence of socio-economic characteristics of the beneficiaries on loan repayment and constraints to implementation of the scheme. Multistage, purposive and random sampling techniques were used to select 226 respondents. Primary and secondary data were collected for the study. Data analyses were actualized using descriptive and multivariate statistics. Findings indicated that male farmers got higher amounts of approvals and disbursements, but made lower repayments than the females. About N100,000 and N250,000 were minimum and maximum amounts disbursed to the crop farmers respectively. Farm size, annual farm income and age significantly influenced loan repayment while gender, education, marital status, farming experience and household size did not. The regulatory body (Central Bank of Nigeria) should encourage simplification of the procedures for obtaining loans and adoption of group lending policy by the Bank of Agriculture while government should engage more extension agents in order to mitigate the identified constraints to scheme implementation, ensure higher repayment rates and programme sustainability.

Keywords: Loan scheme, Crop farmers, Repayment, Sustainability, Anambra

Read: [Full Text - PDF]