On-lending credit scheme to crop farmers in Nigeria: An appraisal of Ekiti State Agricultural Credit Agency (ESACA) scheme
Loading...
Date
2009
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Agriculture, Biotechnology and Ecology
Abstract
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
Description
Keywords
Citation
17