DETERMINANTS OF RATE OF ACCESS TO CREDIT BY SMALL SCALE ARABLE CROP FARMERS IN FEDERAL CAPITAL TERRITORY (FCT), ABUJA, NIGERIA.

Abstract

Abstract The study examined the determinants of rate of access to credit by small scale arable crop farmers in Federal Capital Territory, Abuja, Nigeria, during the 2015/2016 cropping season. Records of loan obtained by the respondents were obtained for the period 2015/2016. Primary data on the output of selected arable crops were collected from the respondents using well-structured questionnaire accompanied by interview schedule. Data were analyzed using descriptive statistics, regression model, farm budgetary analysis, Z-test, Likert scale etc. The result of the analysis revealed that socio-economic variables influences the rate of access of credit by the respondents in the study area, as most of the variables had a positive relationship with the rate of access to loan at 1%, 5% and 10% level of significance with an estimated regression coefficient of 0.8698. Similarly, credit to arable crop farmers has also enhanced their productivity and income. It was recommended that policies directed at consolidating farmers’ holdings through the formation of farmers’ cooperatives to facilitate their access to agricultural credit to boost their earnings and improve their livelihood be formulated. It was also recommended that the present tempo of microfinance institutions be maintained, and should reach every nook and corner of the farming communities.