IMPACT OF ACCESS TO CREDIT FACILITY ON THE PRODUCTIVITY OF RICE FARMERS IN KANO STATE, NIGERIA
Yusuf Tanko and Inuwa Baba Darma
Volume 2 Issue 2
Abstract
The Nigerian government banned rice importation to upsurge its production in the country for food security. Financial institutions are expected to provide the needed finances to the rice farmers to increase rice production in the country. Though. Many people have accepted rice farming, most of them are small-scale rice farmers; having limited funds to support rice farming. Unfortunately, most of the small-scale rice farmers could not access credit facility. The inability of rice farmers in Kano to access credit facility reduced their productivity hence, depriving them access to fertilizer, improved rice variety, and extension services. The study aimed at identifying the impact of credit facility on the productivity of rice farmers in Kano, Nigeria. A disproportionate 768 rice farmers selected randomly from seven clusters. The stochastic Frontier Model (SFM) was used to analysed the data. The results from the SFM show that; credit from commercial banks reduces rice productivity, credit from government, friends and relatives increase rice productivity. Furthermore, age, experience, and access to extension services reduced the inefficiencies of rice farmers. Therefore, the study recommends improving government credit facilities, establishing an Islamic banking in the rural areas, and improving access to extensions. Keywords: Credit facility, Rice productivity, Kano state, Extension services.
Download Paper