Interest Rate, Farm Credit Demand And Supply; Their Determinants And Implications For Rural Credit Markets In Imo State Of Nigeria

Nwaru, Jude; Onyenweaku, CE; Nwagbo, EC

doi:10.4314/jafs.v3i2.41639

Cited by 7 publications

(9 citation statements)

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“…Farmers with high incomes are also more likely to receive credit facilities from lenders since they have a better likelihood of repaying the loan. This result is in agreement with Nto (2006), Nwaru et al (2008), andEssien (2009) who reported a positive and significant relationship between credit demand and farm income. The coefficient of the age of farmers was positive and statistically significant.…”

Section: The Determinants Of Microcredit Demand Among Fish Farmerssupporting

confidence: 91%

“…Other studies such as Mohamed (2003), Guiso et al (2004), Okurut (2006), andMpuga (2008) addressed the issue of access to micro-credit without referring to effective size. Whereas access to microcredit and the amount accessed is more of a supply-side issue related to the potential lender's choice of the maximum credit limit (Nwaru et al, 2008;Aligbe et al, 2018). Therefore, the need for urgent attention to reviving fish enterprises necessitates researching the supply of credit among fish farmers.…”

Section: Introductionmentioning

confidence: 99%

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Determinants of demand and supply of microcredit among fish farmers in Osun State

Kehinde

Bamire

2023

J. Agribus. Rural Dev.

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With the help of microcredit, a farmer’s way of life could be transformed from one of utter destitution to one of greater dignity. For the poor and disadvantaged, especially rural farmers, it unlocks potential and increases productivity and well-being. This study investigated the determinants of demand and supply of microcredit among fish farmers in Osun State. A multi-stage sampling procedure was used to select 150 fish farmers and 50 microcredit providers for the study. Data were analyzed using descriptive statistics and a simultaneous equation model. The result revealed that many fish farmers are males (86.5%), married (77%), and educated (95%). Simultaneous equation estimates revealed that farmers’ income, age, interest rate, and educational level determine microcredit demand among fish farmers whereas liquidity, experience in lending, and interest rate determine the microcredit supply in the study area. The findings of the study revealed that microcredit suppliers consider several factors before supplying credit to fish farmers.

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Section: The Determinants Of Microcredit Demand Among Fish Farmerssupporting

confidence: 91%

Section: Introductionmentioning

confidence: 99%

Determinants of demand and supply of microcredit among fish farmers in Osun State

Kehinde

Bamire

2023

J. Agribus. Rural Dev.

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“…It has also increase their volume of farm output, enable them to acquire new farm tools, it has enable the small holder farmers to acquire capital access and solve some of their social obligations. Nwaru et al (2011) agreed with this fact when he stated that, credit, if well applied, should increase size of farming tools and operations, productivity and therefore income.…”

Section: Problems Faced By Farmers In Credit Utilizationmentioning

confidence: 95%

Effectiveness of Credit Utilization Among Farmers in Ughelli North Local Government Area of Delta State, Nigeria

Ikpoza¹,

Ohwo²,

Nwajei³

et al. 2020

JASD

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The study sought to examine the effectiveness of credit utilization among farmers in Ughelli North Local Government Area of Delta State, Nigeria. Multi-stage random sampling technique was used in selecting 120 farmers from 20 villages randomly selected from the 5 (five) clans. Descriptive and inferential statistics was used to analyze the data. The result revealed that the respondents were predominantly males and married (56.7%). Majority (50%) had only six (6) years of formal education and 51.7% of them had between 0.50 - l.5 ha of farm size. Many of (61.2 %) also did not belong to any form of farmer association and 67.8% had other sources of income to support their farm income. Nigerian Agricultural Cooperation and Rural Development Bank (NACRDB) had the greatest mean response of 3.83 as a source of credit to farmers in the study area. The farmers had very few (20%) contacts with extension agents. The probit regression result indicated that, membership in farmers’ association, number of visit by extension agents and farming experience were statistically significant at P≤0.05 confidence level. The chi-square value of 14.64 with a p-value less than 0.046 implies that the independent variables were statistically significantly in predicting the log likelihood of effective use of micro credit by respondents. It was concluded that there was no effectiveness in the utilization of credit by farmers in the study area. The study recommended prompt processing of loan applications and timely disbursement of loans to successful applicant; proper monitoring of credit utilization by credit agents; increasing amount of loans to farmers as this will help to increase their size and operation and ensure food security and Government intervention to reduce the high rate of lending by micro credit institutions.

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“…The applied method is multiple linear regression analysis (Gujarati, 2003). The selection of factors influencing the credits received by tenant farmers is based on theories and empirical experiences from several studies conducted by Aleem (1990), Anang et al (2016), Anggraini (2015), Azriani (2014), Bhattacharjee et al (2009), Bottemley (1975), Jaya et al (2017), Nwaru et al (2011), Rifaini et al (2022) andYoko, (2015). The amount of credit obtained by tenant farmers is entirely determined by the landowner as the finance provider, but this analysis approaches it from the factors and conditions of the tenant farmers.…”

Section: Analysis Of Factors Influencing Credit Amountmentioning

confidence: 99%

The Relationship between the Sharecropping System, Informal Credit, and Productivity: The Empirical Evidence from the Madurese Traditional Solar Salt Business

Prihantini,

Hanani,

Syafrial

et al. 2024

ECSOFiM

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The ease in obtaining a loan is often regarded as a key advantage of the sharecropping system in the traditional solar salt business of Pamekasan Regency. The challenges faced by tenant farmers in accessing formal financial institutions have led to the continued prevalence of the sharecropping system in rural areas. This research aims to find the relationship between the sharecropping system, informal credit, and salt land productivity. The first analysis employs a multiple linier regression model on 93 tenant farmers in Pamekasan Regency to analyze the factors that influenced the amount of informal credit. Next, a quantitative descriptive analysis was carried out regarding the relationship between the sharecropping system, the amount of informal credit, and the productivity of solar salt fields area. Findings indicate that the significant factors affecting the credit amounts requested by tenant farmers include the cost of funds, loan duration, profits garnered by tenant farmers, the availability of collaterals, and the presence of other credit sources. The second conclusion of this research findings is that the extent of solar salt land area has a positive correlation with the informal credit amount, as does the productivity of the land. It should be an expected necessity for the government to play a larger role in supplying formal credit to small-scale farmers. This includes measures like credit rationing to diminish the influence of landowners.

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Interest Rate, Farm Credit Demand And Supply; Their Determinants And Implications For Rural Credit Markets In Imo State Of Nigeria

Cited by 7 publications

References 0 publications

Determinants of demand and supply of microcredit among fish farmers in Osun State

Determinants of demand and supply of microcredit among fish farmers in Osun State

Effectiveness of Credit Utilization Among Farmers in Ughelli North Local Government Area of Delta State, Nigeria

The Relationship between the Sharecropping System, Informal Credit, and Productivity: The Empirical Evidence from the Madurese Traditional Solar Salt Business

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