ABSTRACT

The broad objective of the study was to analyze the credit repayment performance of smaliholder cocoa producers in lkwuano L.G.A of Abia State and factors influencing the repayment of loan borrowed •by fanners; primary data were collected for the study using a well structured questionnaire. A random sample of 60 farmers selected from 6 communities randomly selected from Oboro and Ibere autonomous community in the study area formed the sample size. Descriptive statistics and regression analysis were used for data analysis. Findings showed that majority of cocoa farmers in the study area were mostly males, the fanners were middle aged, married and literate individuals, who engaged in farming as primary occupation and trading as secondary means of livelihood. The farmers had large household size and are mostly small scale cocoa farmers although with several years of experience. The value of the farmers annual income was poor even though they had access to credit through relatives and friends and are non members of any cooperative group. Farmers in the study area has a high level of repayment capacity Amount of credit received was far below the amount received. Amount borrowed, level of education, fanning experience, size of farm, non farm income, loan duration and timelines of loan disbursement significantly influenced fanners loan repayment. The maor constraints faced by farmers include high interest rate charges on loan, fluctuation in market prices of cocoa that limits high revenue generation to enable repayment of loan outbreak of pest and disease attack of the pods, of cocoa which reduces their quality and amount of revenue that could have been generated to repay loan, untimely release of loans that limits extent of such loan invested on cocoa farm, large family size and other family challenge, short period of loan that do not permit genuine investment to be made Purpose of loan is for investment and expansion of business. Therefore credit farmers should reduce high interest rate placed on loans, farmers should be provide with chemical by the government to protect the crop from pest and disease, there should be timeless in loan disbursement to enable the farmers make meaningful investment, price fluctuation and other market charges should be checked and farmers should change the poor attitude of non-repayment of loan even when they have it.