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ANALYSIS OF CREDIT FACILITIES TO SMALL SCALE FARMERS (A STUDY OF SMALL-SCALE FARMERS

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ANALYSIS OF CREDIT FACILITIES TO SMALL SCALE FARMERS (A STUDY OF SMALL-SCALE FARMERS

 

ABSTRACT

Inadequate support in terms of credit facilities from government and financial institution has been identified as one of the major problem affecting farming operation particularly that of the small scale farmers in Nigeria. This study analyzed the impact of credit facilities to the operation of small scale farms in Nigeria using BENDE Local Government as a case study. Questionnaires were used to source the data used in carrying out this research. The research design employed for this study was a descriptive survey design, in order to achieve an accurate representation of the entire population. The study makes use of simple random sampling technique as the method of data analysis. However, one strong outcome of this study is that the poor state of credit facilities to small scale farmers in Nigeria has drastically affected farming operation, thus, reduction in agricultural output, leading to importation of Agricultural product. Credit facilities therefore plays a crucial role in the operation of small scale farming, this ensures the derived output which sustain the growth and development of the economy.

CHAPTER ONE

INTRODUCTION

1.1            BACKGROUND OF THE STUDY

Agriculture according to Longman Dictionary of Contemporary English (New Edition) is the science or practice of farming.

Agriculture has a key role to play in the economic development of Nigeria, it is a leading sector in any meaningful economic development being carried out by any nation such as ours. Agriculture as its output tends to contribute significantly in the areas like employment opportunities, provision of food to the increasing population, contribution to GDP where the country is able to earn foreign exchange, also the provision of raw materials to our local industries particularly the agro-allied industries for further production.

An overview of Nigerian agricultural sector during 1960’s revealed that agricultural sector was the most important to the economy. In fact, the generation of this period can still remember those days when the pyramid of groundnut was the pride to the northern region and cocoa production areas of the west also boosted the foreign earning from cocoa exports.

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