Determinants of access to credit among rice farmers in Biase Local Government Area of Cross River State, Nigeria

Abstract

Access to credit facilities by poor rural farmers has the potential of making the difference between grinding poverty and economically secured life as well as enhancing agricultural productivity. However, limited availability of credit service has undermined rural income activities due to lack of capital for investment and has prevented farmers from adopting improved farming practices. This study was designed to analyze the determinants of credit access by Rice farmers in Baise local Government Area of Cross River State. Specifically the study examined factors influencing credit accessibility and identified constraints faced by farmers in credit acquisition. Purposive and multi stage sampling techniques were adopted in the selection of 96 Rice farmers from four communities. Primary data were collected through the use of structure questionnaire. The data were analyzed using descriptive and inferential statistics such as frequency count, mean, percentages and logistics regression analysis. The result of the analysis revealed that 69.7% of the respondents were male with an average age of 54 years. One third of the respondents had completed Ordinary National Diploma (OND) .The annual mean income of the respondents was ₦ 401.200. The findings also revealed that majority of the respondents accessed their loans from money lenders with a mean loan amount of ₦ 106,269. The factors that influenced credit accessibility were Age and annual income. The major constraints faced by rice farmers in accessing credit were high interest rate, lack of guarantor and collateral. In line with the findings of this study, it was recommended that high rate of interest charge by credit supplier should be reduce. Annual income was an important factor influencing credit access therefore rice farmers should be encourage on ways of increasing their farm income through diversification.

Keywords: Access, Rice Farmers, Credit