Determinants of Credit Demand among Arable Crop Farmers in Odo-Otin Local Government Area of Osun State, Nigeria

摘要

The study examined the detemiinants of credit demand among arable crop farmers in Odo-Otin Local Government Area of Osun Sate, Nigeria. Primary data were used. Purposive random sampling technique was used to select one hundred and thirty-eight (138) respondents from 10 villages. Two (2) analytical techniques were used namely; Descriptive statistics and Logit regression model to analyse the data. The study revealed that age for both credit and non credit users fell between 41-50 years of age. The meanage of the credit users was 51.19 years while the mean age for the non-credit users was 48.34years. Male fanners were more in the study area with 90.32% for the credit users and 76.32% for the non-credit users. Secondary school was more attended among the respondents in the study area. The average farm size for the non credit users was 5.89 hectares and for the credit users was 4.84 hectares. Majority of the respondents were married with 91.94% for the credit users and 83.15% for the non credit users.Farmers in the study area had access to both formal and informal sources of credit, in which formal credit users dominated the entire study area with 69.35% while 30.65% of the credit users had access to informal sources of credit. The mean of the loan demanded was N-192, 500. The mean of the loan received was N150, 290.3226; mean of the loan repaid with interest rate was 67066.9355. The result of the logit regression analysis showed the relationship between determinants of credit among credit and non credit users. The coefficient of Age, Household income and Farm size were significant at 1% level. Gender was significant at 5% level while Membership of Association was significant at 10% level. Therefore the result revealed that Gender, Household incomeand Fanu Size were major factors that positively and significantly influenced credit demand.