ABSTRACT

The study examined the agricultural loan utilization and productivity of cooperative farmers in Uyo Local Government Area of Akwa Ibom State. Purposive sampling procedure was used in data collection because of the need to get the functional cooperative societies in the study area. Purposively, ten (10) cooperative societies were selected out of the numerous registered cooperatives in the study area. Random sampling was used to select 5 farmers from the cooperative society to make a total of 50 respondents. The data obtained were analyzed with the use of descriptive statistics such as mean, frequencies, percentages, as well as cost and return, regression and correlation analysis. The result obtained from the socio economic characteristics of respondents showed that cooperative farmers in the study area were mostly dominated by women (females). Educational status showed that majority of them were educated at a level which promotes easy communication and adaptation to new technologies and modern practices in farming business. The costs and return analysis showed that business was profitable. Result of the analysis showed that the average volume of loan received by the farmers was N'122, 300 and the farmers made a positive net return from the business while applying loan obtained from banks and cooperatives. The regression analysis showed that land asset, total revenue, educational level, sex and interest rate were the significant variables that influenced the volume of loan of farmers in the study area. Total revenue had a negative influence on the volume of loan of the farmers. This implies that the cooperative does not take into consideration the income level of the farmers before extending loans to them. The regression analysis for productivity of farmers showed that educational level, household size, farm size, input cost and profit were the significant variables. Household size and input cost had a positive influence on farmers' productivity which implies that an increase in household size will lead to available labour, reduced cost and increased productivity. As input cost increases, the tendency to produce more to cover cost will increase productivity. The correlation analysis showed that there is a positive relationship between volume of loan and productivity of farmers. The major problems facing the farmers were lack of collateral/security, government policies, unfavourable loan term, high interest rate and farm size. Based on these findings it is recommended that government should address the problems involved in obtaining loans and assist the cooperatives by providing a conducive environment so that they will be able to provide adequate loan services to their members to increase productivity. Improvement in socio economic infrastructures and exposing the farmers to modern farming system to increase net return are fundamental.