Determinant of farmers participation and repayment of Osun Rural Enterprise and Agricultural Program (OREAP) micro-credit loan scheme

Abstract

This study examines the factors that affect farmer's participation and loan repayment of Osun Rural Enterprise and Agricultural Program (OREAP) micro credit scheme introduced by the government in Osun State. Respondents were proportionately selected from the three (3) Agricultural Development Zones in Osun State. A three-stage sampling technique was used to proportionately draw 90 beneficiaries and 90 nonbeneficiaries from the three agro-ecological zones of the state. Logit regression and ordinary least square model were used to analyze the data. The results showed that Participation in OREAP is significantly affected by gender, marital status, household size, educational status, farm size, farm income, access to extension service and membership in cooperative society. The results also revealed that education, farm income, size of loan granted, and number of loan disbursement are significantly associated with the time it took the respondents to pay back the loan. The farmer's inability to market their produce, risk and fluctuations in farm yield and uncooperative attitudes of other beneficiaries were the constraints faced by farmers as it affect their ability to repay the loan obtained through the program. The study concluded that the activities of OREAP had not been properly carried out in the study area as a result of the problems encountered by beneficiaries in obtaining and repayment of the loan. The research therefore, recommends that government and other agricultural agencies should encourage farmers to go into value additions of theirproduce as this will reduce gloat in the market and wastage of farm produce thereby enabling farmers to be able to repay the loan obtained for their agricultural activities.

Credit access and faecal management practices among poultry farmers in Ogun State, Nigeria: Implications for climate change

“…From this result, access to credit significantly increased the probability of use of BMP in faecal waste management in the study area. This result corroborates the descriptive results for farmers' credit need (Table 1), their perceived limitation to use of BMP (Table 4), and is consistent with Babalola et al (2015) and Adebisi et al (2019).…”

“…This implies that increase in these variables will increase the probability of farmers' access to credit. Similar factors were found to influence farmers' access to micro-credit loan scheme in Osun State (Adebisi et al, 2019). In addition, distance of farmers to the credit source (p < 0.05) and the system of poultry keeping negatively influenced access to credit meaning that farmers' nearness to credit source and using battery cages for raising birds (p < 0.01) will increase the probability of their access to credit.…”

Awareness and participation in input credit scheme: evidence from smallholder rice farmers in Ghana’s North East region

“…Apart from only two farmers, all other farmers stated that the input received from the scheme was enough for their production. With respect to the mode of repayment, all respondents indicated they paid back the credit in kind; thus, depending on the credit received, participants repaid their credit from their harvests (Adebisi et al , 2019).…”

The role of small town in household livelihood diversification in Ethiopia rural areas

“…Networks were recognized to contribute to households' choices of credit sources, market outlets, input sources, information sources (related to marketing and employment), and employment prospects. These networks and social capital are also vital as they act as 'rules of the game' in the production and consumption activities and enable positive rural-urban interactions (Adebisi et al 2019). In this regard, functions that exist in different settlements (higher-order settlements like towns and cities) can be useful to financial activities and livelihood opportunities in rural areas.…”