ABSTRACT

This study is an analysis of the savings and investment behaviour of small—holder farmers in Imo State. Data for the study was collected from a random sample of 100 farmers selected from two local government areas of the state namely Ohaji/Egbeme and Ehima Mbano Local Government Areas. Data was collected with the aid of questionnaires, which were used to interview respondent. Data anlysis was done using frequency tables, means and regression analysis. The multiple regression analysis was used to determine factors which influence the investment and savings behaviour of farmers. The results show that most of the farmers were elderly with large households. A good number of farmers were literate. The expenditure pattern indicate that farmers spend most of their income on food and education. This adversely affects the level of savings and investment on farms. Expenditure on the farm was highest for hired 'labour followed by fertilizer. The least expenditure on the farm was on tractorisation. Age, level of education, total income, number of farm technologies, savings and farm size were significant determinants of the level of investments while the level of education and households size were the only significant determinants of the level of savings. Whereas savings accounted for only 6% of total expenditure of the respondents.