Effect of Credit Utilization on Output of Rural Youth Rice Farmers in Shiroro Local Government Area, Niger State

Abstract

The study aimed at examining the effect of loan utilization on the output of youth rice farmers in Shiroro Local Government Area of Niger State. The specific objectives are to determine the socio-economic characteristics of the respondents, determine whether there is significant difference in output of the beneficiaries and non beneficiaries and compare the mean output of the youth farmers with and without credits facilities. To achieve the study objectives, 100 respondents from 10 wards was used for data collection. The collected data analyzed using simple descriptive statistics and T-test was used to compare the mean output of credit beneficiaries and non- beneficiaries. The study revealed a significant difference in the mean output of rice farmers who utilize loan (1,375kg/h) with those without credit which was (275kg/ha) (t-cal=18.44,p<0.05). It was recommended that, the process of acquiring loan should be simplified to encourage and motivate rice growers to acquire loan in order to increase their productivity as well as improve their standard of living. Also farmers on their part should be encouraged to pay back loan obtained.