ABSTRACT

The study is an analysis of the Determinants of farm level Demand for credit in Ikwuano Local Government area of Abia State, with a view to identifying the major factors that determines farm level demand for credit by farmers. A. random sample of 45 farmers were chosen from the study area for the study .Data were collected with the use of structured questionnaire. Data analysis was done using means, frequency distribution, percentages and multiple regression analysis. The study shows that majority of the farmers in the study area are middle aged educated males, with large household size. The farmers personal income / savings were their main source of farm capital, those who had credit obtained mainly from informal sources. The amount of credit desired by the farmers is relatively high. Age, Annual household expenditure and years of farming experience are significant factors that determines credit demanded by farmers. While age and annual house expenditure has a positive influence on demand for credit, years of farming experience has a negative influence. It is therefore suggested that more loans should be given to older farmers with large annual house hold expenditure and less years of farming experience when designing lending programmes. To meet the high desire for credit by farmers, Government should formulate policies that can improve or increase the amount of credit the farmer obtains. Also, Farmers should be encouraged to form loan and thrift co-operative societies that can serve as reliable source of credit.