ABSTRACT

The study is on Determinants of Savings and Capital Fonnation Amongst Rural Farmers Among Rural Farmers in Bende Local Government Area of Abia State. A random sampling technique was used to select sixty (60) respondents in the study area. Specifically, the socio-economic characteristics of the farmer was described, different methods of savings among the small holder farmers was to ascertain the effect of socio-economic characteristics on savings and capital accumulation were analyzed and finally the problems militating against savings and capital accumulation efforts was examined. It was observed that majority (63%) of the respondents in the study area were males, while 3 6.7% were females. The mean ages were 43.83 years. Also it was observed that 18% of the respondents were single, 64% were married and 23.33% were divorced. This implies that a greater percentage of the farmers had family members. An overwhelming majority (86.67%) of the respondents had formal education while the remaining (13.33%) had no fonnal education. The mean household size was 13 which lies between 11-20 years. Result shows that respondents cultivate at least 1.0 hectares of fann size. Majority (75%) of the farmers are members of farmers association while (25%) are not. The linear regression model was chosen as the lead equation in the multiple regression analysis. The coefficient of multiple determinations is 0.796. The F-statistics indicates that the analysis is statistically significant at 1% level of significance. The coefficient of Gender, number of dependents, farm size and annual farm income were the socioeconomic characteristics that has impact on savings and capital accumulation. Government should encourage commercial banks to establish branches in the rural area to reduce distance problem which will help to improve rural savings.