Micro-credit utilization and its impact on famers maize output and household food security in Kaduna State, Nigeria

Abstract

This study examined micro-credit utilization and its impact on farmers’ maize output and household food security in Kaduna State, Nigeria. Primary data based on 2015 farm season were collected from two categories of farmers; beneficiaries and non-beneficiaries of micro-credit with the aid of structured questionnaire and interview. A multi-stage sampling procedure was adopted to collect data from four Local Government Areas (LGAs): Zango-Kataf, Chikun, Lere and Giwa. The data were analyzed using descriptive statistics and Propensity Score Matching (PSM) model. The study revealed that there is statistically significant difference between beneficiaries and non-beneficiaries of microcredit with respect to age, educational level and farming experience of the respondents sampled. The results from PSM estimator revealed that micro-credit utilization had a positive and statistically significant impact on maize output and food security among maize farming households. The Nearest Neighbor marching (NNM) shows that maize output per hectare and per capita income of 2,920.47 kg/ha (29%) and N254, 080.94/annum (29%) on average was achieved, by maize farming household who used microcredit during the production period under study. The study revealed that there is a significant impact of microcredit accessibility on maize output and household food security of the beneficiaries in the study area. There is need for the provision of infrastructure such as electricity, roads, markets, portable water, health and communication to compliment credit use that would improve the welfare of the farmers. There is also the need to improve the pricing system of maize output. The credit should be monitored by relevant bodies for effective utilization in maize production to avoid diversion to consumption activities.