Browsing by Author "SB Fakayode, MO Adewumi, SA Salau, OA Afolabi"

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    On-lending credit scheme to crop farmers in Nigeria: An appraisal of Ekiti State Agricultural Credit Agency (ESACA) scheme
    (Journal of Agriculture, Biotechnology and Ecology, 2009) SB Fakayode, MO Adewumi, SA Salau, OA Afolabi
    We performed an empirical economic analysis of the on-lending loan scheme of the Ekiti State Agricultural Credit Agency (ESACA), Nigeria. Specifically, we compared the cropping practices of the ESACA’s loan beneficiaries and non-beneficiaries as well as the structure of cost and returns and factors affecting farmers’ output. One hundred and sixty farmers’ households, comprising eighty beneficiaries and eighty non-beneficiaries were surveyed across Ekiti State. Descriptive statistics was used to examine respondents’ socio-economic characteristics while multiple regression analyses were used to identify factors affecting their level of food crop production. We found that a typical loan beneficiary was young, with at least the basic/primary education. The loan sum disbursed to each beneficiary was small; thus, the resultant gross margin from cropping activities of loan beneficiaries was low. However this was higher than that of non-beneficiaries because the beneficiaries farmed diversified crops, including a mix of food and cash crops. There is need for more funding of the ESACA scheme for enhanced performance. However, the agency should ensure better management and prompt disbursement of funds to farmers. Undue and unnecessary hurdles like collaterals and complex loan application processes should be avoided while farmers should be encouraged to venture into the more lucrative cash crop production