EFFICIENCY OF AGRICULTURAL LENDING SCHEMES IN NIGERIA (Published)
The broad objective of the study was to evaluate the efficiency of agricultural lending schemes in Nigeria with a view to determining their impact on output and income of beneficiaries. The study was carried out in Benue, Kwara, Kaduna, Abia, Anambra, Rivers, and Ogun states respectively. The method of proportionate random sampling was used in selecting 185 borrowers who are registered with their state Agricultural Development Programmes (ADP’s). The sampling frame comprised all the registered ADP farmers in the surveyed states who took agricultural loan. Data collected were analyzed using frequencies, percentages, means, and multiple linear regression analysis. The results of the study showed that both small and medium scale farmers are efficient in the use of farm inputs, but small scale farmers are technically more efficient than medium scale farmers. Borrowers with secondary or tertiary education were efficient in inputs use, but borrowers with tertiary education were technically more efficient than borrowers with secondary education. The efficient lending schemes in Nigeria are ACGSF and CACS, but ACGSF was technically more efficient than CACS. It was recommended that the government should continue to fund farmers in Nigeria through ACGSF and CACS.
Keywords: Agriculture, Efficiency, Lending Schemes, Nigeria
Stochastic Frontier Production Function on the Resource Use Efficiency of Fadama II Crop Farmers in Adamawa State, Nigeria (Published)
This study assess the resource use efficiency of Fadama II beneficiary crop farmers in Adamawa state, Nigeria . Data were collected on a sample of 160 farmers and were analyzed using stochastic frontier production function. The maximum likelihood estimates (MLE) for the stochastic production function results shows that the coefficients of farm size, inorganic fertilizer, hired labour and expenses on ploughing, significantly affect food crop output of the respondents. The mean technical efficiency was 0.71 (or 71%), the mean allocative efficiency was 0.76 (or 76%) and the mean economic efficiency was 0.54 (or 54%). The study concludes that, the maximum likelihood estimates (MLE) for the stochastic production function of the coefficients of farm size(X1), inorganic fertilizer (X3), hired labour (X5) and expenses on ploughing (X6) were found to be positive and significantly affect food crop output of the respondents with the mean technical efficiency is 0.71 (or 71%). It is however recommended that, Government and other donor agencies should intensify advisory services activities on effective resource allocation, utilization and other ways of increasing farmers’ beneficiary income. Government in partnership with private sector should encourage farmers to increase its technical efficiency in food crop production which could be achieved through improved farmer specific efficiency factors, which include improved farmer education, access to credit, access to improved extension services and less crop diversification. Government to introduce mentorship and pre-job training programmes and to include the youth in policy decisions.
Keywords: Application, Crop Farmers, Efficiency, Fadama II, Resource, Stochastic Frontier Production Function.