ANALYSIS OF THE PROBLEMS OF AGRICULTURAL CREDITS TO FARMERS IN OVIA NORTH EAST LOCAL GOVERNMENT AREA.
The ever determining food production in Nigeria has prompted development or administration (military and civilian) both present and past to formulate programmed to ameliorate or arrest this situation.
One of such programmed is the agricultural credit facilities scheme, which is being implemented through commercial banks. Sequel to this the researcher examined the problems of obtaining loan for financing agricultural production in Edo state.
BACKGROUND OF THE STUDY
Farmer need productive resources and these resources are acquired with owned or borrowed fund. Agriculture is very important to the economic of most developing countries of the world and because of this, a supply of adequate farmer finance is essential for natural well bring.
Since agriculture is the backbone of the Nigeria economy providing employment to about 70% of its population yet this important sector has suffered healect since the oil boom days. Agriculture has totally declined since the early 1970s Nigeria export crops such as groundnut, palm oil and external have evaluate disappeared and the country is a net importer of food crops. Agriculture recorded growth rate in 1975 at about 2.6% while the population grew at about 70% compared to 57-7% in 1993 economic growth summit (1995) the small scale farmers according to the national agricultural policy document for Nigeria (N.A.P.O.N) constitute over 90% of the food and fiber requirement of Nigeria on the other hand large scale farmers produce has than 1% of farm out put in Nigeria but they tend to have greater access to farmer inputs including farm credit or loan.
STATEMENT OF THE PROBLEM
This study is to investigate the analysis of the problem associated with obtaining credit for financing agricultural production in Edo state. It would be seen that many problems arise the most for mixable problem encounter by the farmers in the area.
OBJECTIVE OF THE STUDY
The main aim of the this study is to find the major problems of obtaining credit or loan for financing agricultural production in Nigeria with particular reference to Edo state. The objectives of the study are:
SIGNIFICANCE OF THE STUDY
Some question to be tackled in the course of this study has been rise as follows.
SCOPE OF THE STUDY
This study is aimed at providing details knowledge and understanding of the operation, function and to determine the problems of obtaining loans for financing agricultural production in Edo state through the federal government agricultural credit guarantee scheme (F.G.A.C.G.S) found since 1977. With the view of providing useful suggestion to ease the problem of agriculture development in Nigeria; It is directly towards the application of problems obtained for financing agriculture view of this more emphasis will be placed on the success of credit facilities lending procedure as a criteria of measurement. The performance of the commercial banks in this regard will be assessed by using the present farmers areas to the agricultural credit facilities as well as the hindrance which the small scale farmers faces in obtaining loans from financial institution.
DEFINITION OF TERMS
LOAN OR CREDIT FOR AGRICULTURE OF AGRICULTURAL CREDITS
Refers to the process of obtaining control over the use of money, goods and services in the present for a promise to repay at a future date.
AGRICULTURAL FINANCE: This means ways and means by which a farmers obtain the entire necessary fund required in order to carryout agricultural production.
INTEREST: This means the price paid for the use of borrowed money and is usually expressed as a percent on an annual basis.
COLLATERAL: This means anything offered as a promise of loan repayment to be given to a lender in cast of non-payment.
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