Evaluation of agricultural credit utilization by cooperative farmers in Benue state of Nigeria
European Journal of Economics, Finance and Administrative Sciences
Department of Agricultural Extension and Communication, University of Agriculture, P.M.B. 2373, Makurdi, Benue State, Nigeria; Department of Agricultural Economics, University of Agriculture, P.M.B. 2373, Makurdi, Benue State, Nigeria
The study evaluated agricultural credit utilization by cooperative farmers in Benue State of Nigeria. Data were collected from randomly sampled 130 Agricultural Cooperatives in Benue State using a structured questionnaire. Data were analyzed using frequency distribution and percentages and t-test analysis. The result of study showed that majority of the farmers (41.5%) is within the age bracket of active work and therefore can make meaningful impact in agricultural production when motivated with the needed credit facilities. Furthermore, 88.5% of the respondents source their credits from non-institutional sources. More than 87.7% of the respondents utilized credits accessed for the purpose of Agricultural production. In addition, the study indicated that the loan acquired by the respondents had significant impact on their output and income. Farmer's joined the farmers' cooperative societies mainly for access to credit. It is recommended that the farmers should be adequately motivated with needed credit facilities so as to enhance their agricultural production. Furthermore, formal credit institution should increase the access of farmers to credit facilities as this will go a long way in improving their productivity and welfare. The result of study indicated that high interest rate was the major constraint of the respondents in sourcing agricultural credit. © EuroJournals, Inc. 2012.