Effect of Credit on Rice Production in Kogi State, Nigeria

Abstract

Rice production requires some level of capital outlay. Most of the Nigerian farmers have no take-off capital and access to credit are usually very limited. This study investigated the effect of credit on rice production in Lokoja and Koton Karfe Local Government areas of Kogi state, Nigeria.A total of 115 rice farmers were sampled from the study areas. Data collected were analyzed using descriptive and inferential statistics. Result showed that the mean age of the respondents was 41 years, with household size of four (4).Majority (62.7%) of farmers were literate and experienced with mean of fifteen years and an average farm size of two (2) hectares. Most of the farmers obtained credit from non- institutional sources, such as family, friends, essusu, and Co-operative societies. Credit accessibility had a negative effect on rice output with a coefficient of -0.096 in the study areas. Low profitability from output, poor educational background and high interest rate were the major limitations against access to credit. It was therefore recommended that farmers should be encouraged to participate actively in farmers’ social organizations and co-operatives societies in order to get farm inputs at cheaper rates. Rice farmers also need farm management education so that they can adopt best/global best practices.