ABSTRACT

The work is on Access to and Use of Credit in Ikwuano L.G.A in Abia State. A random sample of 70 respondents was chosen. Well structured questionnaire was used for data collection. Data analysis was done using frequency distribution, percentages and regression analysis. The research has the following findings: 78.6% of the Respondents were at least 40years and with a mean age of 52 years. 94.4% were married, 56% of the respondents are male farmers and 44% female farmers. 82% completed at least primary school education. On household size, 74% of the farmers had households with at least 5 members. 81% of the respondents had at least 11 years farming experience. 78.6% had personal savings as their major source of credit and 83% of the farmers had savings. 91.4% of the farmers had at most 1.9 hectares as farm size. Access among farmers was 37%. On credit utilization, 65.4% of the farmers used the credit received to purchase farm input. The work uses the concept of credit limit (amount received) to analyse the factors influencing farmers' level of access to credit in Ikwuano L.G.A. Asset, farm income and savings were significant and positive factors influencing amount received while farm size and non-farm income were significant and negative factors influencing amount received. The study shows that most of the farmers are elderly, married, literate and had a moderate family size and also that there are more males engaged in farming although there are equally a large number of female farmers. The study also revealed that the farmers were experienced, and had personal savings as their major source of income and also that majority of them had savings as well. It was also discovered that majority of the fanners were subsistence fanners (i.e. produced on small scale) and had small farm size. The level of access among the farmers was low. On utilization of credit the research shows that credit was not fully utilized for farm purposes rather some were diverted for household consumption. Hence, programmes and policies should be developed to encourage able bodied youths to participate in agriculture (farming), . Although most farmers were literate, effort should be made to encourage people in this locality to attain high status in education as this would improve or empower them as farmers to access more credit. Gender differences with respect to access to credit facilities have to be critically looked into. Provision of training to credit beneficiaries in aspects of credit utilization management should be intensified so as to reduce diversion of credit into non-farm purposes