Thesis Abstract

The abstract of the research This study aims to analyze the credit facilities available to small-scale farmers in the agricultural sector. Small-scale farmers play a crucial role in ensuring food security and economic development in many countries. However, access to credit is often a significant challenge for them due to various reasons such as lack of collateral, limited financial literacy, and stringent lending requirements. Understanding the credit facilities available to small-scale farmers is essential for designing effective policies and initiatives to support their businesses. The research will focus on examining the different types of credit facilities offered to small-scale farmers, including traditional bank loans, microfinance loans, government-sponsored credit programs, and other forms of credit. By analyzing the features, eligibility criteria, interest rates, repayment terms, and overall accessibility of these credit facilities, the study aims to provide insights into the effectiveness of each type of credit in meeting the financial needs of small-scale farmers. Furthermore, the research will also investigate the challenges faced by small-scale farmers in accessing credit and how these challenges impact their business administration. Factors such as inadequate credit history, lack of financial documentation, and high transaction costs will be explored to understand the barriers that prevent small-scale farmers from accessing credit facilities. By identifying these challenges, the study seeks to recommend potential solutions and strategies to improve the credit access for small-scale farmers. The methodology for this research will involve a combination of qualitative and quantitative approaches. Data will be collected through surveys, interviews, and focus group discussions with small-scale farmers, financial institutions, government agencies, and other stakeholders involved in providing credit facilities to small-scale farmers. Statistical analysis and qualitative interpretation will be used to analyze the data and draw meaningful conclusions. Overall, this research aims to contribute to the existing literature on agricultural finance and small-scale farming by providing a comprehensive analysis of credit facilities for small-scale farmers. The findings of this study are expected to inform policymakers, financial institutions, and development organizations on ways to enhance credit access for small-scale farmers, ultimately improving their business administration and livelihoods.

Thesis Overview

1.1 Background To The Study

Credits constitute a micro- financial grant that is made available by government through financial institutions to aid in the development of the economy. The agricultural sector consist of one of the fundamental sector of government which it seeks rapid development. Consequently successive administration have made efforts to develop the agricultural sector through the formulation and implementation of policy aimed at providing access to micro credit to small scale farmers . However it is pertinent to note that small scale farmers have not been able to significantly access micro credit in the recent past due to bottleneck and bureaucratic process which have left the agricultural sector underdeveloped. Financial institution have not shown much interest in small scale farmers as many small scale farmers do not have collaterals and financial capacity to meet banking requirements to secure loans. Also they find it risky and a transaction cost to extend credit to small scale farmers. Many corrupt politicians have also undermined the process to divert funds meant for small scale farmers to other projects. Therefore small scale farmers have consistently found it difficult to access micro- credit to boost agricultural production. It is therefore pertinent to enhance the access of micro credit to small scale farmers through improved financial regulatory framework to eliminate stringent requirements and procedures, formulate and direct policy implementation which give small scale farmers   access to micro credit. White, T.K. (1975) ‘Credit and Agricultural Development’. An

International Bank for Reconstruction and Development (IBRD) Paper.

Rural Development Series.

 The research therefore seek to proffer an analysis of credit facilities of small scale farmers

1.2 Statement of the Problem

The activities of small scale farmers have not received significant motivation from government and financial institution in time past. This has been one of the reasons for the poor level of  agricultural production in the rural areas thereby affecting the overall agricultural production in the sector. The problem of lack of adequate support in the provision of credit by government and the financial institution constitute a fundamental problem confronting small scale farming in Nigeria. The agricultural sector consist of one of the fundamental sector of government which it seeks rapid development. Consequently successive administration have made efforts to develop the agricultural sector through the formulation and implementation of policy aimed at providing access to micro credit to small scale farmers . However it is pertinent to note that small scale farmers have not been able to significantly access micro credit in the recent past due to bottleneck and bureaucratic process which have left the agricultural sector underdeveloped. Financial institution have not shown much interest in small scale farmers as many small scale farmers do not have collaterals and financial capacity to meet banking requirements to secure loans. Also they find it risky and a transaction cost to extend credit to small scale farmers. Many corrupt politicians have also undermined the process to divert funds meant for small scale farmers to other projects. Therefore small scale farmers have consistently found it difficult to access micro- credit to boost agricultural production.  The development of the sector therefore calls for the injection of funds to enhance the acquisition of equipment and inputs and investment capital for agricultural activities. Consequently it calls for the government to institute and implement policies and programs which genuinely addresses the plight of small scale farmers through the promotion and provision of micro credit for agricultural production.

1.3 Objectives of the Study

To proffer an Analysis of credit facilities of small scale famers

To determine the significance of credit to small scale farmers

1.4 Research Questions

What is the analysis of credit facilities to small scale farmer?

What is the level of credit available to small scale farmers?

1.5 Significance of the Study

The economy having gone through economic recession is articulating the diversification of the economy through agriculture. Consequently the need for agricultural expansion and growth is imperative. Therefore the granting of credit to small scale farmers is necessary to boost the expansion of the agricultural sector.

Hence the study of this nature to foster the need of microcredit to small scale farmers

1.6 Research Hypothesis

Ho The extension of credit facilities to small scale farmers is not significant

Hi The extension of credit facilities to small scale farmers is significant

1.7 Scope of the Study

The study focuses on the Analysis of credit facilities to small scale farmers

1.8 Limitations of the Study

The research was confronted by some constraints which include logistics and geographical factor.

1.9 Definition of Terms

Microcredit: A little amount of money granted as loan by a financial institution or government to an individual which can often be without any collateral.

Inputs: This consist of Materials (fertilizer, tools, pesticides, herbicides, and seeds) used as input for farming activities

Output: This is defined as the production Yield for a given period of time. Usually for a farming season.

Income: This is the revenue derived from the sale of agricultural outputs.

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