Effect of Anchor Borrowers' Programme on the Income of Smallholder Maize Farmers in Kwara State, Nigeria

Abstract

The paper investigated the effect of the Anchor Borrowersˈ Credit Scheme on the income of the smallholder maize farmers using the survey data obtained from 120 maize farmers in Kwara State, Nigeria. Data was analysed using descriptive statistics, Propensity Score Matching (PSM), Average Treatment effect on Treated (ATT), and Ordinary Least Square regression. Employing descriptive statistics, Farmers were characterised based on their socioeconomic attributes. Using the Propensity Score Matching (PSM) and Average Treatment effect on Treated (ATT), it was discovered that the scheme had a positive and significant effect on the income of the maize farmers, although this effect was the same among all beneficiaries of the scheme. The Ordinary Least Square regression was used to check for the differential effect of the scheme among the benefiting farmers and was found that the positive effect varies with the socioeconomic attributes of the farmers. The results showed a general improvement in the income of the farmers as a result of the scheme. However, the effect of the improvement was higher on beneficiaries with higher educational level, more farming experience as well as beneficiaries with larger farm size. The study findings provided documentation for policymakers for improving the delivery system of the scheme.