Credit assess and welfare status of smallholder: evidence from farmers in Kwara state, Nigeria
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Date
2024
Journal Title
Journal ISSN
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Publisher
School of Agricultural Sciences, National University, Costa Rica
Abstract
Lack of proper access to credit poses a
major threat to agricultural production
and food security globally, yet commercial
bank, co-operative societies, microfinance
banks, agricultural development programs,
non- governmental organizations, government agricultural schemes offer loans to
low-income individuals who have need
of it despite the challenges encountered
in accessing and managing it by farmers.
However, there is limited research on the
effectiveness of credit programs in im proving the welfare of smallholder farmers
in Kwara state, Nigeria. Therefore, the nex us between credit assess and welfare status
of smallholder farmers in Kwara state, Ni geria was analyzed. Quantitative data was
collected from 120 smallholder farmers
selected through a three multi-stage sampling techniques. Data was analyzed using
descriptive statistics, per capita expenditure, per capita income, and ordinary least
square. Results showed that most respondents were middle-aged married males en gaged primarily in farming, with moderate
education, experience and income levels. It
was also revealed that there is high awareness and use of credit. The major source of
credit for the respondents was cooperative
societies (60%) with least of agricultural
development programs (3.92%). Overall,
58.93% of smallholder farmers had access
to credit. Key perceived benefits were in vestment in agriculture (32.50%) and in creased productivity (31.67%), and diversi fication of farming activities (20.83%). The
significant factors influencing the welfare
status of smallholder farmers include credit amount, age and household size. Based
on these findings, it is recommended that both formal and informal sources of credit
be established for farmers within the farmers’ vicinity.
Description
Keywords
Income, Credit sources, Farmers, agricultural investments, Sustainability