Farm credits played vital roles in the socioeconomic transformation of the rural economies. However, their acquisition and repayment were characterized by numerous challenges including high levels of default among beneficiaries. This study analyzed the smallholder farmers' loan repayment capacity using household data from 110 cooperative farmers from selected villages in Ogun State, Nigeria. Specifically, the socioeconomic and demographic characteristics of respondents, loan repayment rate and factors influencing repayment capacity were examined. Aside from purposive selection of Yewa North, multistage random sampling technique was used to select the study sample. Data were analyzed using descriptive statistics, correlation and regression techniques. Results revealed that the average age of respondents was 45 years with 36% within 20 to 40 years active working population. Average repayment rate was 69% with 42% repaying above nine-tenths, and 20% less than one-half of potential amounts during the period. Loan size (p<0.01) and farm size (p<0.05) had significant positive influences on loan repayment capacity while household size (p<0.05) had a negative influence. From the elasticity analysis, while a 10% increase in loan and farm sizes resulted to 7 and 2.8% increases respectively, similar 10% increase in household size caused 4.2% decrease in repayment capacity. All significant variables produced a priori signs. The implication is that to enhance loan repayment capacity of smallholder cooperative farmers, policies and programmes capable of increasing sizes of loan and farm holdings, or reducing household size should be promoted. However, higher proportional increases were required for each variable to attain a desired level of increase in loan repayment capacity.
The household head characteristics of smallholder cassava farmers supplying raw materials to the major commercial starch processors in Nigeria were examined alongside their market participation categories. A multi-stage random sampling technique was used to select 96 farmers working in clusters in the eight cassava producing states. Data were analyzed using a combination of descriptive and inferential statistics, including the use of independent sample t-test technique to compare farmer's characteristics for the farmers' market participation categories. Results revealed that majority of the farmers were farming for subsistence with only 19.80% selling up to 50% of their farm produce as against 80.20% who sold less. Average mean values were found to be higher for the high market participants compared with the low participants for the age, farming experiences, education, farm size, gender, marital status, household size, training, season of harvesting and fertilizer use, but lower for use of credit, improved cassava variety, harvesting method, farming time devotion, and road access. Only farm size, gender and harvesting season at p<0.01 level and training at p<0.05 level were found to be statistically significant in distinguishing the high and low market participation categories. Policies and programmes aimed at promoting market participation among cassava farmers in Nigeria should be more impactful if directed at these significant factors.
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