Socio-Economic Factors and Smallholder Cassava Farmers' Access to Credit in South-Western Nigeria

Abstract

Access to credit is an important factor in the attainment of agricultural productivity increase. We adopted a Tobit model to assess the factors that influence the intensity of rural smallholder cassava farmers' access to credit in Southwest Nigeria, using primary data collected from 856 rural households by the International Institute of Tropical Agriculture (IITA) in 2011. The results of the empirical Tobit model indicate that seven out of the 11 variables included in the model are statistically related to the intensity of access to credit. However, only total livestock unit, cassava output, monetary value of the households' productive assets and household size are positively and statistically significant. This implies that increase in output, diversification of households' income sources into livestock production and accumulation of assets are important variables that have the potential to enhance farmers' access to larger amounts of credit. Therefore, policies that will lead to improve farmers' outputs and/or increase diversification and assets accumulation are recommended for this region.

Keywords

• cassava
• credit
• farmers
• impact
• Nigeria
• productivity