PHD-Department of Applied Economics

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Browsing PHD-Department of Applied Economics by Subject "Agricultural Credit Accessibility"

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    Agricultural Credit Accessibility and its Effects on Output of Smallholder Farmers in Plateau State, Nigeria
    (Kenyatta University, 2023-11) Baba, Sunday; Nelson H.W. Wawire; Charles Mugendi
    Agricultural credit improves smallholder farmersā€˜ purchasing power by allowing them to use modern technologies for their farm production. Credit is therefore imperative for agriculture which had previously been a non-commercial venture for the rural inhabitants. Studies have shown that unless credit is made available on suitable terms, majority of the smallholder farmers cannot acquire modern technology for production. Farmers are therefore faced with the challenges of low productivity, inadequate access to logistic support, input, crop infestations by pests and diseases and loss of crops and livestock. The overall objective of the study was to investigate agricultural credit accessibility and its effects on output of smallholder farmers in Plateau State, Nigeria. The specific objectives of the study were to: find out the determinants of access to agricultural credit by smallholder farmers; to investigate how credit accesses by smallholder farmers affect the agricultural output and to investigate the credit utilisation behaviour of smallholder farmers on agricultural output The target population for the study was the smallholder farmers that were engaged in agricultural practices in Plateau State, Nigeria. The sample size was 399 households that par-took in agricultural practices in sampled State. The study used structured questionnaires to collect primary data. The collection of primary data was done through the administration of questionnaires to selected smallholder farmers. From the data collection process, the researcher was assisted by research assistants that made frequent follow-up on the respondents to ensure that high response rate was achieved. In objective one, the study used probit model because the dependent variable is credit access. The dependent variable was measured using binary scale and therefore the study tried to find the likelihood of the variable, while the independent variables influencing access to credit. The study adopted treatment effect model using the method of Propensity Score Matching. Access to credit was considered in this case a treatment hence the study tried to establish veracity of access to credit on agricultural output of smallholder farmers. Utilisation behaviour was also considered in this case a treatment hence the study tried to establish the veracity of credit utilisation behaviour on agricultural output of smallholder farmer. The first specific objective was to analyse the determinants of agricultural credit access by smallholder farmers. The study found that the level of education; farm size; source of income; household size; credit information; distance to the scheme; distance to the cooperative society and the type of agricultural activity served as determinants of credit access to smallholder farmers. The second objective was to determine the effect of access to agricultural credit on agricultural output by smallholder farmers. The study found that average treatment effect on the treated (ATET) coefficient was positive and significant, meaning that the output small holders farmers realized is not much. The third objective was to investigate the effect of credit utilisation behaviour of smallholder farmers on agricultural output. The study found that the coefficient for ATET was negative and significant because the output that smallholder farmers get at the end of each farming season is insignificant. The study recommended that there is the need for government to come up with more efficient credit facilities to enable smallholder farmers to access credit easily.