Credit Accessibility to Poor Rural Farmers: A Logistic Regression Approach
[1]
Glory Emmanuel Edet, Department of Agricultural Economics and Extension, Faculty of Agriculture, University of Uyo, Uyo, Nigeria.
[2]
Nsikak-Abasi Aniefiok Etim, Department of Agricultural Economics and Extension, Faculty of Agriculture, University of Uyo, Uyo, Nigeria.
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.
[1]
Adetunji, O. (2006). Creating appropriate technology as a means of Waste minimization in cassava and products. www.nifst.org/?nifst:articles.
[2]
Anetor, F. O; Chris O., I. Kelikume and F. Ikpesu (2016). Credit supply and Agricultural production in Nigeria: A vector Auto regressive (VAR) Approach. Journal of Economics and Sustainable Development 7 (2): 131-143.
[3]
Armendariz, de Aghion, B. and Gollier, C. (2000). “Peer group formation in an adverse selection model”. The Economic Journal, 110(465): 632-643.
[4]
Ayannale, A. B. and Bamire, A. S. (1996). Cost and Return in Alternative Poultry Keeping systems in Southern Nigeria; A Comparative analysis. The Indian Journal of Economics LXXVI: 47-59.
[5]
Bacha, O; Aboma, G. Gemeda A. and De Groote, H. (2001). The determinant’s of fertilizer and manure use in maize production in Western and Southern Africa. Regional Maize Conference 11-15. February, 2001.
[6]
Beck, T. (2007). Financing Constraints of SME’s in developing Countries. Evidence, determinants solutions. Journal of International Money and Finance 31(2): 401-441.
[7]
Brooks, C. (2008). Introductory Econometrics for Finance. Cambridge: Cambridge University Press.
[8]
Campbell, J. Y. and Mankiw, N. G. (1989). Consumption, Income and Interest Rates: Reinterpreting the Time Series Evidence. NBER Working Paper No. 2924.
[9]
Chauke, P. K., Motlhatlhana, M. L., Pfumayara, T. K and Anim, F. D. K. (2013). Factors influencing access to credit: A case study of Smallholder farmers in the Capricorn District of South Africa. African Journal of Agricultural Research 8 (7): 582-585.
[10]
Etim, N. A (2007). Analysis of poverty status of rural farm household in Akwa Ibom State, Nigeria. Unpublished Ph. D Dissertation, Department of Agric. Economics, Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria.
[11]
Etim, N. A and Edet, G. E (2014). Does Asset ownership reduce chronic poverty? European Scientific Journal 10 (1): 168-176.
[12]
Etim, N. A. and Benson, D. N (2016). Willingness to pay for Organic Fertilizer by Resources Poor vegetable Farmers in the Humid Tropic. Journal of Agriculture and Ecological Research (62): 1-11.
[13]
Etim, N. A. and Edet, G. E (2014). Factors determining urban poverty of farming households in a Tropical Region. American Journal of Experimental Agriculture 4 (3): 322-335.
[14]
Etim, N. A. and Edet, G. E. (2013). Adoption of Inorganic Fertilizer by Resource Poor Cassava farmers in Niger Delta Region, Nigeria. International Journal of Agriculture Innovations and Research 2(1): 94-98.
[15]
Etim, N. A. and Edet, G. E. (2013). Constraints of the Nigerian Agricultural Sector: A Review. British Journal of Science 10(1): 22-32.
[16]
Etim, N. A. Okon S. and Akpabio, I. A. (2011). Labour and Poverty: Empirical Relationship using House data from South Nigeria. International Journal of Agricultural Management and Development 1(1): 53-59.
[17]
Etim, N. A. Thompson, D. and Onyenweaku, C. E. (2013). Measuring efficiency of Yam (Dioscorea spp). Production among resource poor farmers in Rural Nigeria. Journal of Agricultural and Food Sciences 1(3): 42-47.
[18]
Etim, N. A and Ukoha, O. O (2010). Analysis of Poverty Profile of Rural Households: Evidence from South-South Nigeria. Journal of Agriculture and social science 6 (3): 48-52.
[19]
Fan, S., Sawker, A, and Shields, G. (2007). How to Mobilize Public Resources to support poverty reduction. 2010 Focus brief on the world’s poor and Hungry people. International Food Policy. Research institute, Washington, D.C.
[20]
Ghatak, M. (2000). “Screening by the company you keep: Joint liability lending and the peer selection effect”, Economic Journal 110(465), pp. 601-31.
[21]
Gujarati, D. N. (2004). Basic Econometrics 4th Edition. McGraw-Hill Book Company. New York.
[22]
Hussein, H. (2007). “Farm Household Economic Behaviour in Imperfect Financial Markets. Doctoral Thesis, Swedish University of Agricultural Sciences, Uppsala.
[23]
Kitbur, A (1990). “Diversion of Agricultural Loan of Formal Institutions.” 9(4): 773-780.
[24]
Khan, MH. (2001). Rural poverty in Developing countries. Implications for Public Policy. International Monetary Fund P.1 2001.
[25]
Kiplimo, J; Ngenoh, E. and Bett, J (2015). Evaluation of Factors influencing access to credit financial services: Evidence from small holder farmers in Eastern Region of Kenya. Journal of Economics and Sustainable Development 6 (7): 97-106.
[26]
Kumar, A. (2005). Access to Financial Services in Brazil: A study (Washington, DC: World Bank).
[27]
Machethe, C. L (2004). Agriculture and poverty in South Africa: can agriculture reduce poverty? Paper presented at Overcoming underdevelopment conference, Pretoria, South Africa.
[28]
Maddala, G. S. Limited-Dependent and Qualitative Variables in Econometrics. Cambridge: Cambridge University Press. pp 401.
[29]
Manganhele, A. T (2010). Improving access to credit for small holder farmers in Mozambique. Lessons from government effort in developing countries of Africa and Asia M. Sc. Thesis. Department of Agricultural Economics, Extension and Rural Development, University of Pretoria, South Africa.
[30]
Mbata, J. N (1991). Evaluation of Institutional credit and its Role in Agricultural Production in Rivers State of Nigeria. Africa Review of Money Finance and Banking 1:5-22.
[31]
NPC (National Population Commission) 2006. Population Census of the Federal Republic of Nigeria. Analytical Report at the National Population Commission Abuja.
[32]
Nwaru, J. C and Onuoha, R. E. (2010). Credit use and Technical Change in Smallholder Food Crop Production in Imo State of Nigeria. New York Science Journal 3 (11): 144-151.
[33]
Okurut, N; Schoombee A., Van der Bergs (2004). Credit demand and credit rationing in the informal financial sector in Uganda. Paper to the DPRU/Tips/Cornell conference on African Development and Poverty Reduction: the Macro-Micro linkage October 2004.
[34]
Olagunju, F. I and Adeyemo, R (2000). Evaluation of the operational performance of the Nigerian Agricultural credit cooperative and rural development bank (NACRDB) in South-Western Nigeria. International Journal of Agricultural Economics and Rural Development 1(1): 53-67.
[35]
Olagunju, F. I and Ajiboye, A (2010) “Agricultural Lending Decision: A Tobit Regression Analysis.” Journal of Food Agrcultural, Nutrition and Development. 10(5): 2515-2541.
[36]
Olajide, O. T. Akinlabi, B. H and Tijani, A. A. (2012). Agriculture Resource and economic growth in Nigeria. European Scientific Journal 8(22): 103-115.
[37]
Ololade, R. A and Olagunju F. I (2013). Determinants of Access to Credit among Rural Farmers in Oyo State, Nigeria Global Journal of Science Frontier Research? Agriculture and Veterinary Sciences 13 (2): 17-22.
[38]
Poliquit, L. Y (2006). Accessibility of rural Credit among Small Farmers in the Philippines. Master of Applied Science Thesis. Institute of Natural Resources, Massey University, Palmerston North, New Zealand.
[39]
Rahji, M. A. Y (2000). An analysis of the Determinants of Agricultural Credit Approval and Loan Size by Commercial Banks in South Western Nigeria. Journal of Nigerian Development Studies 1(1):6-25.
[40]
Sirak, M. and Rice, J. C. (1994). “Logistic Regression: An Introduction”. In B. Thompson ed., Advances in Social Science Methodology. 13: 191-245. Greenwich, CT: JAI Press.
[41]
Tang, S. Z. Guan, Jin S. (2010). Formal and Informal Credit Markets and Rural Credit Demand in China. Selected Paper prepared for Presentation at the Agricultural and Applied Economics Association 2010 AAEA, CAES & WAEA Joint Annual Meeting, Denver, Colorado, July 25-27, 2010.
[42]
Udoh, E. J. and Etim, N. A. (2006). Cocoyam Farms in Akwa Ibom State, Nigeria. a statistic production frontier approach. Journal of Sustainable Development in Agriculture and Environment 2:41-48.
[43]
Wooldridge, A. (2002). The Role of Financial and Business Development Services (BDS) in Micro and Small Enterprise (MSE) Development in Ethiopia. Addis Ababa: Associations of Ethiopia Microfinance Institutions.
[44]
World Bank (1996). “Nigeria Poverty in the Midst of Plenty”. The challenge of Growth with Inclusion. A World Bank Poverty Assessment.
[45]
Zegeye T., Tadesse B. and Tesfaye, S. (2001). Determinants of adoption of improved maize technologies in maize growing regions in Ethiopia. 2nd National Maize Workshop of Ethiopia 12-16 November, Addis Ababa. Ethiopia; 2001.
