Effect of agricultural credits on production among smallholder crop farmers in delta state

Abstract

The study analysed the effect of agricultural credits on production among smallholder crop farmers in Delta State. Multistage random sampling procedure was adopted for the selection of 210 respondents. Data were collected from primary sources through the use of structured questionnaires and analysed through the use of descriptive and inferential statistical tools. The result showed that most of the respondents were in the age range of 41years to 50 years who were married with secondary school education. Majority were engaged in farming as their primary occupation having mean family size of 8 persons and an average annual income of N250,000. Majority obtained their credit from personal savings and cooperative societies. The major determinants of access to credit in the area were interest rate, type of enterprise, and farm size. The major constraints to obtaining credit were lending policies of credit institutions, lack of knowledge of rules and regulations and provision of collateral security. It is recommended that farmers should be encouraged to form farmers’ cooperative societies to improve access to credits.