Evaluation of Agricultural Credit Facility in Agricultural Production and Rural Development

α
I. D. Edem
I. D. Edem
σ
Ekwere
Ekwere
ρ
G. E.
G. E.
α Nnamdi Azikiwe University Nnamdi Azikiwe University

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Evaluation of Agricultural Credit Facility in Agricultural Production and Rural Development

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Abstract

Lack of capital has been identified as one of the constraints faced by small scale farmers. The aim of this research work was to examine the effect of agricultural credit on agricultural production among small scale farmers with specific objectives to; (1) determine its effect on farm size and (2) evaluate the quantity of inputs and outputs among small scale farmers. Structured questionnaires were administered to 136 farmers, who had been selected using the stratified random sampling technique, and the data obtained were summarized into percentages. Regression analysis was adopted to assess the impacts of socio-economic factors on loan size among farmers, while Cobb-Douglas Production Function Analysis (CDPFA) was used to test the relationship between key independent variables such as loan amount, farm size, inputs and farm output as the dependent variable. The analysis revealed a significantly high (R2= 0.922) degree of relationship between the dependent variable and the independent variables; gender, age, education, family size, farm size, farming experience. The Adjusted coefficient (R2 = 0.918) revealed that 91.8 % variation in the size of loan explained by the changes in variables. The F-test significantly showed the joint effect of variables in the model on the size of loan. And on the hypothesis two, the independent variables; loan amount, farm size, and inputs explained the variation in the total value of output of the farmers. The study therefore shows that access to agricultural credit impacts positively on agricultural production. Government and the organized private sector should regularly and timely offer credit to farmers.

References

16 Cites in Article
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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

I. D. Edem. 2014. \u201cEvaluation of Agricultural Credit Facility in Agricultural Production and Rural Development\u201d. Global Journal of Human-Social Science - B: Geography, Environmental Science & Disaster Management GJHSS-B Volume 14 (GJHSS Volume 14 Issue B3): .

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Issue Cover
GJHSS Volume 14 Issue B3
Pg. 19- 26
Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

Version of record

v1.2

Issue date

June 11, 2014

Language
en
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Lack of capital has been identified as one of the constraints faced by small scale farmers. The aim of this research work was to examine the effect of agricultural credit on agricultural production among small scale farmers with specific objectives to; (1) determine its effect on farm size and (2) evaluate the quantity of inputs and outputs among small scale farmers. Structured questionnaires were administered to 136 farmers, who had been selected using the stratified random sampling technique, and the data obtained were summarized into percentages. Regression analysis was adopted to assess the impacts of socio-economic factors on loan size among farmers, while Cobb-Douglas Production Function Analysis (CDPFA) was used to test the relationship between key independent variables such as loan amount, farm size, inputs and farm output as the dependent variable. The analysis revealed a significantly high (R2= 0.922) degree of relationship between the dependent variable and the independent variables; gender, age, education, family size, farm size, farming experience. The Adjusted coefficient (R2 = 0.918) revealed that 91.8 % variation in the size of loan explained by the changes in variables. The F-test significantly showed the joint effect of variables in the model on the size of loan. And on the hypothesis two, the independent variables; loan amount, farm size, and inputs explained the variation in the total value of output of the farmers. The study therefore shows that access to agricultural credit impacts positively on agricultural production. Government and the organized private sector should regularly and timely offer credit to farmers.

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Evaluation of Agricultural Credit Facility in Agricultural Production and Rural Development

Ekwere
Ekwere
G. E.
G. E.
I. D. Edem
I. D. Edem Nnamdi Azikiwe University

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