The Patterns and Determinants of Agricultural Credit Use among Farm Households in Oyo State, Nigeria

The study examined the patterns and determinants of agricultural credit use among farming households in Oyo State, Nigeria. The primary data used for the study were obtained from a cross sectional survey of 114 farm households drawn by multi-stage random sampling technique. Both descriptive statisti...

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Bibliographic Details
Published in:Asian economic and financial review 2014-10, Vol.4 (10), p.1290
Main Author: Adekoy, O A
Format: Article
Language:English
Subjects:
Age
Agricultural cooperatives
Agricultural economics
Agricultural lending
Agricultural production
Economic statistics
Economic theory
Education
Farm income
Farmers
Farms
Households
Informal economy
Interest rates
Loans
Local government
Males
Microfinance
Rural areas
Sampling techniques
Studies
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Summary:The study examined the patterns and determinants of agricultural credit use among farming households in Oyo State, Nigeria. The primary data used for the study were obtained from a cross sectional survey of 114 farm households drawn by multi-stage random sampling technique. Both descriptive statistics and multiple regressions were used to analyze the data obtained. The study revealed that 47.4% of farm households in the State were in the age bracket of 51-60 years with mean age of 58 years while majority (86.8%) were farmers. Also, 48.2% had no formal education and 22.8% had between 7-12 years of formal education. Over half of the farm households (58%) maintained a household size of 5 ? 8 with mean size of five while 27.2% and 26.3% had between 11-20 years and 21-30 years of farming experience. In addition, 52% of the respondents in the State patronized the cooperative societies with mean loan requested as 108,157.89, mean loan released as 97,763.15 and mean loan repaid being 70,898.24. The major constraints faced by the rural farm households in accessing loans include high interest rate (21.9%) and lack of collateral (14.9%). Farm size (p
ISSN:2305-2147
2222-6737