Abstract:
This paper examined the effect of credit use on agricultural output of rural household in Akoko
North-West local government area of Ondo State. A total of Fifty (50) questionnaires were
designed to capture the socio demographic characteristics of the farmers and other objectives of
the study. Data obtained were subjected to descriptive statistic, linear regression and probit
analysis. The studies found that majority (97.9%) of the rural household were male, with (25.5%)
having no formal education. (42.6%) of the respondents were within the age groups of 40-50
years. The result of the linear regression model shows that; household size (p< 0.10), quality of
road (p<0.01), cost of transportation (p<0.10), amount of credit granted and total farm size
(p<0.05) had positive influence on agricultural output in the study area. The result of the probit
regression model showed that: farm size (p< 0.10), output (p<0.05), member of a saving group
(p<0.10), education (p<0.05) and experience had significant effect on the amount of credit
granted to farmers in the study area. The mean credit request was (Naira 30851.06) of which only
(Naira 22875.34) was granted. The study concluded that most of the respondents were in their active
age and the amount of credit granted to them by their cooperative society was too small for them
to improve on their farm size. The study recommended that farmers should participate more on
their cooperative society and government should improve on the quality of road in the study area
and also make loan sources available to the farmers to increase their productivity. |
