EFFECTS OF AGRICULTURAL TRACTOR LEASING PROGRAMMES ON FARMERS IN NIGERIA: 2015 - 2017

Abstract

The study analysed effects of agricultural tractor leasing programmes on farmers in Nigeria for the period 2015 - 2017. The study was carried out in Kaduna, Katsina, Osun and Ogun States, respectively. A random sampling technique was used in selecting 200 beneficiaries who registered with their State tractor owners and operators association of Nigeria (TOOAN). The sampling frame comprised all the registered TOOAN farmers’ beneficiaries in the surveyed States who took bank loan. Data collected were analysed using simple statistical tools like frequencies, percentages, means, and inferential statistics (multiple linear regression analysis). The results showed that within the study periods, a total of 987 farmers applied for bank loan through State chapters of TOOAN in Nigeria totalling N137,049,650 leaving a credit supply gap of N65,163,900.00.00. The total amount of loan repaid by the beneficiaries during the period was N35,230,180.00 which gave a repayment rate of 69% and a default rate of 31%. The loan granted to the beneficiaries increased national output by 23.3% and affected positively on the beneficiaries’ income. It was recommended that government should continue to encourage increased funding in collaboration with private sectors agricultural mechanization service providers to the agricultural sector for increased accelerated food production in Nigeria by small and medium scale farmers.