International Journal of Agricultural Economics

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Analysis of Factors Influencing Access to Formal Loan Among Small-scale Swamp Rice Farmers in Obubra Local Government Area, Cross River State, Nigeria

Received: Dec. 23, 2019    Accepted: Jan. 03, 2020    Published: Jan. 17, 2020
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Abstract

This study analyzed the factors influencing access to formal agricultural loan among small-scale swamp rice farmers in Obubra Local Government Area in Cross River State, Nigeria. Data were obtained from 120 respondents by using multi-stage random sampling technique. Descriptive statistics and logit regression model were used to analyze the data. The results showed that majority (62.5%) of the farmers were males, about 40% were aged between 31-40 years, married (68.33%), had household size of 7-9 persons (51.67%), had secondary education (51.67%), had farm sizes of 1-2ha (50.83%), had farming experiences of 11-20 years (45%) and only 30.83% had annual farm income of between N51,000.00 and N100,000.00. The logit regression analysis revealed that gender, farm income, household size, education and collateral positively influenced the probability of farmers’ access to loan at 1% significant level respectively. Marital status, farming experience and farm size positively influenced access to loan at 5%, 5% and 10% respectively The major constraints respondents faced in accessing loan are long period of processing loan applications, problem of getting collateral and high interest rate while the major constraints they faced in rice production are crop destruction by cattle, low yield as a result of pests and diseases and low yield as a result of poor soil. The Federal Government should enact law that will motivate the cattle herders to compensate any farmer whose crops have been destroyed or eaten by their cattle and banks should process loan applications on time so that the loan will be disbursed to farmers at the appropriate time.

DOI 10.11648/j.ijae.20190406.19
Published in International Journal of Agricultural Economics ( Volume 4, Issue 6, November 2019 )
Page(s) 307-313
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Analysis, Factors, Access, Formal, Loan, Swamp Rice

References
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[4] Kuye, O. O (2016) Comparative analyses of beneficiaries and non-beneficiaries of bank loan among small-scale cassava farmers in South-South Nigeria (2009-2013). Unpublished PhD thesis submitted to the Department of Agricultural Economics, Management and Extension, Ebonyi State University, Abakaliki, Ebonyi State, Nigeria. pp 19-20.
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[17] Ugbajah, M. and Ugwumba, C. (2013). Analysis of Micro Credit as a Veritable Tool for Poverty Reduction among Rural Farmers in Anambra State, Nigeria. Discourse Journal of Agriculture and Food Sciences, 1 (10): 152-159.
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  • APA Style

    Kuye Olufemi Oludayo, Ogiri Oyom Mbina. (2020). Analysis of Factors Influencing Access to Formal Loan Among Small-scale Swamp Rice Farmers in Obubra Local Government Area, Cross River State, Nigeria. International Journal of Agricultural Economics, 4(6), 307-313. https://doi.org/10.11648/j.ijae.20190406.19

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    ACS Style

    Kuye Olufemi Oludayo; Ogiri Oyom Mbina. Analysis of Factors Influencing Access to Formal Loan Among Small-scale Swamp Rice Farmers in Obubra Local Government Area, Cross River State, Nigeria. Int. J. Agric. Econ. 2020, 4(6), 307-313. doi: 10.11648/j.ijae.20190406.19

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    AMA Style

    Kuye Olufemi Oludayo, Ogiri Oyom Mbina. Analysis of Factors Influencing Access to Formal Loan Among Small-scale Swamp Rice Farmers in Obubra Local Government Area, Cross River State, Nigeria. Int J Agric Econ. 2020;4(6):307-313. doi: 10.11648/j.ijae.20190406.19

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  • @article{10.11648/j.ijae.20190406.19,
      author = {Kuye Olufemi Oludayo and Ogiri Oyom Mbina},
      title = {Analysis of Factors Influencing Access to Formal Loan Among Small-scale Swamp Rice Farmers in Obubra Local Government Area, Cross River State, Nigeria},
      journal = {International Journal of Agricultural Economics},
      volume = {4},
      number = {6},
      pages = {307-313},
      doi = {10.11648/j.ijae.20190406.19},
      url = {https://doi.org/10.11648/j.ijae.20190406.19},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijae.20190406.19},
      abstract = {This study analyzed the factors influencing access to formal agricultural loan among small-scale swamp rice farmers in Obubra Local Government Area in Cross River State, Nigeria. Data were obtained from 120 respondents by using multi-stage random sampling technique. Descriptive statistics and logit regression model were used to analyze the data. The results showed that majority (62.5%) of the farmers were males, about 40% were aged between 31-40 years, married (68.33%), had household size of 7-9 persons (51.67%), had secondary education (51.67%), had farm sizes of 1-2ha (50.83%), had farming experiences of 11-20 years (45%) and only 30.83% had annual farm income of between N51,000.00 and N100,000.00. The logit regression analysis revealed that gender, farm income, household size, education and collateral positively influenced the probability of farmers’ access to loan at 1% significant level respectively. Marital status, farming experience and farm size positively influenced access to loan at 5%, 5% and 10% respectively The major constraints respondents faced in accessing loan are long period of processing loan applications, problem of getting collateral and high interest rate while the major constraints they faced in rice production are crop destruction by cattle, low yield as a result of pests and diseases and low yield as a result of poor soil. The Federal Government should enact law that will motivate the cattle herders to compensate any farmer whose crops have been destroyed or eaten by their cattle and banks should process loan applications on time so that the loan will be disbursed to farmers at the appropriate time.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Analysis of Factors Influencing Access to Formal Loan Among Small-scale Swamp Rice Farmers in Obubra Local Government Area, Cross River State, Nigeria
    AU  - Kuye Olufemi Oludayo
    AU  - Ogiri Oyom Mbina
    Y1  - 2020/01/17
    PY  - 2020
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    DO  - 10.11648/j.ijae.20190406.19
    T2  - International Journal of Agricultural Economics
    JF  - International Journal of Agricultural Economics
    JO  - International Journal of Agricultural Economics
    SP  - 307
    EP  - 313
    PB  - Science Publishing Group
    SN  - 2575-3843
    UR  - https://doi.org/10.11648/j.ijae.20190406.19
    AB  - This study analyzed the factors influencing access to formal agricultural loan among small-scale swamp rice farmers in Obubra Local Government Area in Cross River State, Nigeria. Data were obtained from 120 respondents by using multi-stage random sampling technique. Descriptive statistics and logit regression model were used to analyze the data. The results showed that majority (62.5%) of the farmers were males, about 40% were aged between 31-40 years, married (68.33%), had household size of 7-9 persons (51.67%), had secondary education (51.67%), had farm sizes of 1-2ha (50.83%), had farming experiences of 11-20 years (45%) and only 30.83% had annual farm income of between N51,000.00 and N100,000.00. The logit regression analysis revealed that gender, farm income, household size, education and collateral positively influenced the probability of farmers’ access to loan at 1% significant level respectively. Marital status, farming experience and farm size positively influenced access to loan at 5%, 5% and 10% respectively The major constraints respondents faced in accessing loan are long period of processing loan applications, problem of getting collateral and high interest rate while the major constraints they faced in rice production are crop destruction by cattle, low yield as a result of pests and diseases and low yield as a result of poor soil. The Federal Government should enact law that will motivate the cattle herders to compensate any farmer whose crops have been destroyed or eaten by their cattle and banks should process loan applications on time so that the loan will be disbursed to farmers at the appropriate time.
    VL  - 4
    IS  - 6
    ER  - 

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Author Information
  • Department of Agricultural Economics and Extension, Faculty of Agriculture and Forestry, Cross River University of Technology, Obubra Campus, Obubra, Nigeria

  • Department of Agricultural Economics and Extension, Faculty of Agriculture and Forestry, Cross River University of Technology, Obubra Campus, Obubra, Nigeria

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