Analysis of Loan Utilization among Small-Scale Rice Farmers in Benue State, Nigeria
Fanyam, A.A1, Atagher, M.1 and Nyietagher, Z
ABSTRACT
The study analysed loan utilization among small-scale rice farmers in Benue State, Nigeria. A multi stage sampling technique was used in randomly selecting 222 respondents. Data were obtained using structured questionnaire. Data collected were analyzed through the use of descriptive statistics such as frequencies, mean, percentages. The inferential statistics deployed was Ordinary lead square multiple regression analysis. Results showed that majority of the respondents (58.11%) were males. The mean age distribution of rice farmers was 33.25years. The educational level of respondents revealed that they were literate with 52.25% having obtained formal education. Majority of the respondents (53.2%) were married. Purchase of seeds was rated as the highest (Mean=3.25) level of loan utilization expenditure pattern in the study area. The result also revealed that, the variables that significantly influence credit utilization among small-scale rice farmers in the study area were age (β = 0.09) positively significant at 5%, farm size (β = -0.10) negatively significant at 5%, amount of loan collected (β = 0.41) positively significant at 1%, repayment period (β = 0.03) positively significant at 1%, and interest rate (β = 0.19) positively significant at 5% level. It was concluded that, small-scale rice farmers utilized their loan for agricultural activities to increase productivity, income and standard of living. The study therefore, recommended that, government should formulate policies that will favour small-scale rice farmers in terms of loan resource procurement and utilization irrespective of gender and that, educated farmers of productive age should concentrate utilization of loan more on farming activities.
Keywords: Agriculture, loanable fund, interest, Farmers, Small-scale, Utilization
