Effects of agricultural credit facility on the agricultural production and rural development

Authors

  • GE Ekwere Department of Co-Operative Economics and Management, NnamdiAzikiwe University, Awka.Anambra State
  • ID Edem Department of Soil Science and Land resources Management, Faculty of Agriculture, University of Uyo, AkwaIbom State

DOI:

https://doi.org/10.3126/ije.v3i2.10529

Keywords:

Agriculture credit, Agricultural production, Rural development, Small scale farmers

Abstract

Lack of capital has been identified as one of the constraints that faced by small scale farmers. The aim of this research was to examine the effect of agricultural credit on the agriculture production, and calculate the inputs and outputs among small scale farmers. Structured questionnaires were distributed to 136 farmers, who had been selected using the stratified random sampling technique, and the data obtained were summarized into percentages. Regression analysis was adopted to assess the impacts of socio-economic factors on loan size among farmers, while Cobb-Douglas Production Function Analysis (CDPFA) was used to test the relationship between key independent variables such as loan amount, farm size, inputs and farm output as dependent variable. The analysis revealed a significantly high value of coefficient of determination (R2= 0.922) that reflected a high relationship between the dependent variable and the independent variables; gender, age, education, family size, farm size, farming experience. The Adjusted (R2) coefficient (R2 = 0.918) revealed that 91.8 % of variation in loam size explained by the changes in variables. The results showed a significance in F-test in size of loan. The hypothesis two, exhibited that the independent variables; loan size, farm size, and inputs explained the variation in the total value of farmers output. The study therefore showed that to achieve the positive agricultural credit impacts on agricultural production, The Government and the private sector should regularly and timely facilitate the credit to the small scale farmers.

DOI: http://dx.doi.org/10.3126/ije.v3i2.10529

International Journal of the Environment Vol.3(2) 2014: 192-204

Downloads

Download data is not yet available.
Abstract
5141
PDF
1439

Downloads

Published

2014-05-30

How to Cite

Ekwere, G., & Edem, I. (2014). Effects of agricultural credit facility on the agricultural production and rural development. International Journal of Environment, 3(2), 192–204. https://doi.org/10.3126/ije.v3i2.10529

Issue

Vol. 3 No. 2 (2014)

Section

Research Papers

License

The author(s) acknowledge that the manuscript submitted is his/her/their own original work; all authors participated in the work in a substantive way and are prepared to take public responsibility for the work; all authors have seen and approved the manuscript as submitted;  the manuscript has not been published and is not being submitted or considered for publication elsewhere; the text, illustrations, and any other materials included in the manuscript do not infringe(plagiarism) upon any existing copyright or other rights of anyone.

Notwithstanding the above, the Contributor(s) or, if applicable the Contributor’s Employer, retain(s) all proprietary rights other than copyright, such as Patent rights; to use, free of charge, all parts of this article for the author’s future works in books, lectures, classroom teaching or oral presentations; the right to reproduce the article for their own purposes provided the copies are not offered for sale.

The copyright to the contribution identified is transferred to IJE.