Poverty Status Assessment Among Small Scale Farm Households Microcredit Users in Ekiti State Nigeria

Abstract

The study was embarked upon to assess the poverty status among small scale farm household's micro credit users in Ekiti state. Specifically, the study described the socio economic characteristics of the respondents identified the poverty status of the respondents and determined the factors affecting the poverty status of the small scale farm household's micro credit users in Ekiti state. A well-structured questionnaire was used to elicit information from 150 respondents selected through a multi-stage sampling procedure. The data were analyzed with the use of descriptive statistics, Foster-Greer-Thorbecke (FGT) indices and multivariate probit model. It was revealed that most of the respondents were within the active age range with mean age of 46 years, mostly male (78.67%), married (88%) with average household size of 6 persons. The majority, 85.33% had access to formal education while the average farm size was 2 ha with average farm household income of N224,846.00 per annum. The average farming experience was 18 years and the main source of micro credit to the majority (71.33%) of the respondents was micro credit agency in the state. The average loan applied for and granted was N427,950 but N161,755 was the average amount spent on farming activities. The main challenge encountered in accessing micro credit facilities by 48% (most) of the respondents was lack of collateral security. In determining the poverty status among the respondents, Mean Per Capita Household Annual Income (MPCHHAI) of N45,905 was used as poverty line. It was revealed that 73.33% of the respondents were poor while the main factors affecting the poverty status of the respondents were sex, age, educational level, household size, membership of socioeconomic organization, household income and amount of micro credit collected. It was recommended that the size of micro credit given to the farmers by micro credit agency should be improved upon and diversion of micro credit meant for agricultural production should be discouraged in order to boost agricultural production and alleviate poverty among the small scale farmers.

Decomposition Analysis of Poverty among Rural Farming Household in Oyo State, Nigeria

“…Poverty is multidimensional in nature and scope and it is directly associated with a household income, asset holding, and other economic activities that mutually generate a livelihood strategy and outcomes [10]. According [11,12], Poverty level is higher in the rural areas when compared to the urban areas and most of the rural dwellers are small scale farmers that depend on agriculture for food and income.…”