ABSTRACT

The broad objective of this study was to analyze the Effect of Agricultural Credit on the Output and Profitability of Rice Farmers in Ivo L. G. A of Ebonyi State. Specifically, the objective of the study was achieved by examine the socioeconomic characteristics of rice farmers, identified the sources of credit of rice farmers credit beneficiaries, compare the output arid profit level of rice farmers credit beneficiaries and non beneficiaries, ascertain the factors that affect the output and profit of rice farmers credit beneficiaries and non-credit beneficiaries and identify the constraints encountered by rice farmers in credit acquisition. Primary data were collected for the study using a well structure questionnaire from a random sample of 80 rice farmers for both credit and non-credit henet'iciaries were selected from 5 villages of purposive chosen community. Descriptive statistics, Net Return Analysis, Z-test, Multiple Regression Analysis and Chon 's test were used for data analysis. The result showed that the credit beneficiaries had more males, farm size total output and profit than the non-credit beneficiaries Age fanning experience, farm size, labour and planting materials were significant factors that influenced the output level of education, farming experience, farm size, operational cost, total output were significant factors that influenced the profit of the credit beneficiaries. This study concluded that the higher output and profit made by the credit beneficiaries was due to their use of credit m rice production Some of constraints faced by rice farmers in credit acquisition include Provision of security, long distance from sources, inadequate fund and credit institution lending policies. The study therefore recommend that adequate credit should he given to the farmers demanding credit in order to increase their output and profit level while the noncredit beneficiaries should be encouraged to use credit so as to enhance their output and profit level.