IIARD International Institute of Academic Research and Development

International Journal of Agriculture and Earth Science (IJAES )

E- ISSN 2489-0081
P- ISSN 2695-1894
VOL. 8 NO. 2 2022
DOI: https://www.doi.org/10.56201/ijaes.v8.no2.2022.pg10.21

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Challenges of Accessing Agricultural Credits by Farmers for Increased Food Production in Delta State, Nigeria

Odinwa, A. B. Johnny, B., Ekeogu, C. O. and Chukuigwe, O.

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Abstract

The study investigated the challenges of accessing agricultural credits by farmers for increased food production in Delta State, Nigeria, the specific objectives were to: examine the level of awareness of the sources of agricultural credits to farmers in the study area, ascertain the extent of accessibility of such agricultural credits to farmers, and identify the challenges facing farmers in accessing agricultural credits in Delta State. Descriptive survey design was adopted to assess the farmers. Purposive sampling technique was used to select three LGAs and a total of nine (9) communities while 32 respondents from each of the 9 communities were randomly selected given a total of two hundred and eighty-eight (288) respondents and used for the study. Weighted mean scores derived from the Likert type rating scale was used to analyze the data collated for the study, while the Analysis of Variance (ANOVA) was engaged for test of significance at 0.05% level of significance. The findings showed that the farmers were highly aware of Personal savings (GM = 2.49), Cooperative societies (GM = 2.47), Government bodies (GM = 2.28), Micro Finance bank (GM = 2.28) and Commercial Agriculture Credit Scheme (GM = 2.18) among others as sources of agricultural credits in Delta State. It indicated that Personal savings, Loan from Cooperative societies, Bank of Agriculture (BOA), Micro Finance Bank and the Commercial Agriculture Credit Scheme among other formal and informal sources of agricultural credits were highly accessible to farmers in the area. Finally, it showed in the degree of seriousness that: Lack of trust by the lending institutions (GM = 3.32), Poor leadership vision in agriculture (GM = 3.25), Lack of awareness of available agro credits (GM = 3.22), Low perception of farming enterprise by the people (GM = 3.20), High interest rate (GM = 3.05), Not having the required savings with the lending institution (GM = 3.02), beside others were the most serio

keywords:

Challenge, Accessing, Agricultural Credits, Farmers, Increase, Food Production.

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