Determinants of farmers’ access to microcredit from cooperative societies in Ondo state, Nigeria

A Kolapo,Ad Kehinde,Aa Adebanke,As Ogunleye

doi:10.3329/ijarit.v11i2.57262

A Kolapo, Ad Kehinde + Show 2 more

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https://doi.org/10.3329/ijarit.v11i2.57262

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Abstract

The study examined the determinants of farmers’ access to microcredit from cooperative societies in Ondo state. A multistage sampling technique was used to obtain data from 100 respondents. Primary data was collected for the purpose of the study. We used descriptive statistics and logit regression model to analyses the data collected. Result showed that the farmers were mostly male farmers (64%) while majority of the farmers had a mean age of 44.10 ± 14.70. It was also revealed that consumer cooperative society, producer cooperative society, marketing cooperative society, cooperative farming society and credit and thrift cooperative society were the major forms of cooperative used by the farmers. The result also shows that age, marital status, farm size, farming experience, credit from another source and number of years in the cooperative significantly influenced farmers’ access to microcredit from cooperative society. Int. J. Agril. Res. Innov. Tech. 11(2): 103-107, Dec 2021

Highlights

In Nigeria, agriculture is the largest non-oil export earner and major employer of labour and a key contributor to wealth creation, contributing 41.21% of Gross Domestic Product (GDP) and mitigating poverty (NPC, 2006)
The results further showed that farmers have farm sizes of between 1 to 5 ha
We found that majority (81.0%) of farmers had some forms of education

Summary

Introduction

In Nigeria, agriculture is the largest non-oil export earner and major employer of labour and a key contributor to wealth creation, contributing 41.21% of Gross Domestic Product (GDP) and mitigating poverty (NPC, 2006). It has helped to increase the stability of the economy, improve food security and it has helped farmers especially the small-scaled/rural farmers to have access to inputs. For agriculture to contribute to national development, farmers must have the required input to invest. Most farmers in the rural area have inadequate resources to get the required input such as seeds, fertilizers, chemicals and credit facilities. One of the major factors that determine credit allocation in the rural area is the socio-economic characteristics of the farmer. As stated by Emerole et al (2013), access to credit from cooperative societies is dependent on the number of years of farming by the farmer, farming as primary occupation, farmers’ membership to cooperative groups and International Journal of Agricultural Research Innovation & Technology An open access article under

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