Effect of Credit Acquisition and Repayment on the Productivity of Smallholder Crop Farmers in Ardo-Kola LGA, Taraba State, Nigeria

Abstract

This study examined the effect of credit acquisition and repayment on the productivity of smallholder crop farmers in Ardo-Kola Local Government Area, Taraba State. The specific objectives were to assess farmers’ accessibility to credit facilities, determine the extent of credit utilization, evaluate the effect of credit acquisition on crop productivity, and identify the challenges associated with credit repayment in the area. A combination of simple random sampling and snowball techniques was used to select respondents. Data were analyzed using descriptive statistics such as frequencies and percentages. Findings revealed that most of the respondents (71.3%) were male and within the economically active age bracket, while 57.4% possessed at least a Senior Secondary School Certificate. Credit accessibility was generally low, as farmers reported frequent denial of loan applications and stringent acquisition requirements by financial institutions. The study also showed that 59.6% of the respondents were unable to fully utilize the credit obtained due to procedural complexities and delays. Furthermore, credit acquisition did not lead to substantial improvement in crop productivity, indicating a weak linkage between loan access and farm output among the respondents. High interest rates, short repayment periods, and limited grace periods were identified as major challenges affecting credit repayment performance. The study concludes that inadequate access to credit and unfavorable repayment conditions significantly constrain the productivity of smallholder crop farmers in Ardo-Kola. Strengthened agricultural credit policies, reduced interest rates, and simplified loan procedures are recommended to enhance farmers’ financial inclusion and productivity outcomes.