The study examined the link between institutional attributes of formal agricultural credit sources (FACS) and credit demand by small-scale farmers in Southwest, Nigeria. Cross-sectional data on farms, farmers’ socio-economic characteristics and institutional attributes of FACS were collected and analyzed with 2-Limit Tobit regression model. The results showed that transaction costs, time of disbursement, loan amount and availability of complimentary inputs were significant factors influencing farmers’ decision to acquire credit. Cash crop farmers showed both higher credit acquisition propensities and credit use intensities than food crop farmers implying cash crop farmers’ need for a special credit window. It is strongly recommended that bringing formal credit sources close to farmers, synchronizing credit disbursement with production season, increasing credit volume to make it adequate and providing improved complimentary inputs, should form important considerations in an agricultural credit policy that is geared at sustainable development of Nigeria’s agriculture.
PAPER TITLE :THE NEXUS BETWEEN ATTRIBUTES OF AGRICULTURAL CREDIT SOURCES AND SMALLHOLDERS’ CREDIT ACQUISITION: EV
JOURNAL Of SUSTAINABLE TECHNOLOGY | VOLUME 2 NUMBER 11 2011
- Author(s) : AKINRINOLA, O.O. and MAFIMISEBI, T.E.