Acta Univ. Agric. Silvic. Mendelianae Brun. 2018, 66, 947-954
Published online 2018-08-31

Analysis of Rural Farm Households’ Access to Formal Agricultural Credit in Yola South Local Government Area, Adamawa State, Nigeria

Amurtiya Michael1, Yuniyus Dengle Giroh1, Mark Polycarp1, Zubairu Emmanuel Ashindo2

1Department of Agricultural Economics and Extension, Modibbo Adama University of Technology, PMB 2076, Yola, Nigeria
2Department of Agricultural Economics and Extension, Taraba State University, Jalingo, Nigeria

The purpose of this study was to analyse rural farm households’ access to formal agricultural credit in Yola South Local Government Area of Adamawa state, Nigeria. Descriptive and inferential statistics were used to analyse the primary data collected using structured questionnaire (from 140 rural farming households). Findings from the study have shown that, 90 % of the respondents were male, mostly educated (70 %) and married (89 %) engaging in farming as their primary livelihood activity (about 81 %) with an average farm size of 2.47 hectares. The result of the binary logit regression has shown that level of education and income do influence access to credit positively, while age and distance to access point negatively influence respondents’ access to formal credit. The study further revealed that, lack of acceptable collateral / security, high interest rates, low financial literacy, and complex banking procedures were the main factors that limits the respondents’ access to credit facility from formal sources. In order for farmers to have an improved access to formal credits, the formation of strong groups that are viable to provide the needed capital is encouraged, banking operations should be simplified to suite farmers’ needs / convenience and financial literacy among farmers should be improved through awareness campaigns (in agricultural extension packages).


The authors sincerely appreciate the staff of Community Development Office of the Yola South Local Government Area and those Federal Department of Agriculture Yola for their assistance in sampling the rural communities and also data collection.


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