Analysis Of Farmers Access To Agricultural Credit In Ikwuano Local Government Area Of Abia State

ABSTRACT

The overall objective of this study is to examine farmers' awareness of and access to agricultural credit. Four autonomous communities were chosen randomly from Ikwuano Local Government Area. Then 25 farmers were randomly selected from each autonomous community to give a sample of 100 farmers. Structured questionnaires were used to interview and obtain information from the farmers. The data were analysed by simple statistical techniques such as frequencies and percentages. The result of the study showed that majority of the farmers in Ikwuano Local Government Area are aware of Agricultural Credit and most of them do not have access to it. The reasons are lack of collateral, loan duration, discriminatory attitudes of lending institutions. In order to increase farmers access to credit, we suggest that, credit institutions should relax their requirements on collaterals , reduce red tape and locate more offices in rural areas. Credit institutions should adopt integrated approach to credit services by developing services such as input supply and market outlets.