Contribution Of Agricultural Credit Policy To Yam ProductionAmong Small Scale Farmers In Selected Areas Of Kogi State, Nigeria

The study aimed at assessing the contribution of Nigeria’s Bank of Agriculture (BoA) to yam production among small scale farmers, was carried out at Kabba/Bunu and Idah Local Government Areas of Kogi State, Nigeria. The study specifically sought to describe the socio-economic determinants of farmers’ access to agricultural credit from BoA, determine the factors determining the effects of credit obtained on farmers’ income from yam production, and identify the problems constraining effective delivery of agricultural credit to farmers by BoA. Sixty farmers were randomly selected from ten community associations that have had transactions with BoA, and another sixty farmers that were non-members of the associations were selected from the ten communities. Primary data were collected by personal interviews using structure questionnaire, and a checklist was used to guide collection of secondary information from staff of BoA in Kogi State. Descriptive statistics such as frequency distribution mean and percentages; gross margin technique; and multiple regression models were used for data analyses.  The results indicated that small scale farmers that obtained loan from BoA achieved greater profitability of their yam enterprise. The major factors constraining effective delivery of agricultural credit to farmers included poor loan repayment by farmers, inadequate fund, awareness of respondents about loan procedure, timeliness of disbursement, and transportation. Amount of loan obtained, farm size, educational level, costs of seed, herbicide and labour were positively related to income from yam production; significant at one percent. It was concluded that government’s policies on agricultural land and farm inputs such as improved seeds, herbicides and fertilizers should compliment agricultural credit policy to aid the impact on agricultural outputs and income of small scale farmers.