Evaluation of Agricultural Credit Utilization Among Rice Farmers in ADP Zone I of Taraba State, Nigeria

Abstract

The study evaluates the utilization of agricultural credit among rice farmers in ADP Zone 1 of Taraba State, Nigeria. The specific objectives of the study were to describe the socio-economic characteristics of rice farmers, identify the purpose of credit utilization among the rice farmers, and to identify the constraints experienced by respondents in rice production and credit acquisition and utilization in the study area. Multi-stage and random sampling techniques were employed in selecting respondents and the study area. The primary data used for the study were collected from 84 randomly selected rice farmers through the use of structured questionnaire. Data were analyzed using descriptive statistics such as percentages, frequency and mean. The result of the findings revealed that majority (83.75%) of the respondents were male, the mean age of the respondents were 45 years old, 75% were married, most (70%) had acquired one form of formal education and another, 50% of them had household size of 1-5 people. 53.8% of the respondents belongs to cooperative organization,50% were small scale rice farmers who produces on 1-5ha,  93.8% do not have access to extension services in the study area. The study further indicate that 43.8% of the respondents strongly agreed that they use credit to improve their crop productivity, majority (65.0%) identified that high interest rate is the severe constraint in accessing credit facility in the study area. The study recommended that Government and Non-governmental organization should go into the establishment of community and agricultural banks in the rural areas with simple procedures to securing loans facilities; and also help in reducing the high interest rates of lending institutions. Adequate Extension personnel be recruited, trained and be posted to the rural communities by the State government for dissemination of innovations, supervision and recouping of government agricultural loans.