Credit Accessibility to Poor Rural Farmers: A Logistic Regression Approach
There is no doubt that rural credit is an important tool in agricultural production and has contributed to the reduction of poverty in many rural families. But farmers are constrained to obtain credit as it has become increasingly difficult to access agricultural credit. An empirical study of rural farmers access to credit was investigated. Multistage sampling procedure was used select the representative farmers used for the study. Primary data were obtained from 180 farmers with the aid of questionnaire. Data were analyzed using probit regression analysis. Result of analysis revealed that the educational level, membership of social organization, and household size were directly related to farmers access to credit financial services whereas household income was inversely related to farmers access to credit. Findings suggest the need to step-up the training of rural farmers through regular seminars, workshops, symposia, and participation of farmers in social organizations as a means of improving farmers access to credit.
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