ATTENTION:
BEFORE YOU READ THE
PROJECT WORK, PLEASE READ THE INFORMATION BELOW. THANK YOU!
TO GET THE FULL
PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953,
08168759420
TO GET MORE PROJECT
TOPICS IN YOUR DEPARTMENT, PLEASE VISIT:
ANALYSIS
OF THE PROBLEMS OF AGRICULTURAL CREDIT TO FARMERS
ABSTRACT
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.
CHAPTER ONE
INTRODUCTION
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.
1. The
inability of the farmers to meet the collateral security acquired by the
commercial bank is a major problem hindering agricultural sectors. This is as a
result where farmers have nothing to deposit in the process of obtaining credit
for agriculture.
2. High
interest rate is another factor that discourage farmers from obtaining credit
in most commercial banks, payment of interest involve when fund is borrowed.
3. The
low educational background of the farmers also
constitutes hindrance in obtaining agricultural credit.
4. Credit
facilities are not easily accessible to small scale farmers.
5. The
bureaveratie native involved in the process of obtaining credit ot loans for
agricultural purpose have not being encourage on the part of the farmers. It is
on the note that the researcher intends to identify some of the hindering
factors in order to proffer solution.
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:
1. To
identify the problem militating against adequate financing of agriculture.
2. To
enumerate and analyze the agricultural credit granted to farmers in recent
years.
3. To
know how much the commercial banks have help in financing agriculture.
4. To
look how agriculture has developed especially in Edo state.
5. To
create awareness of the problem posed by agricultural financing inadequacies.
6. To
investigate how these problems can be tackled.
SIGNIFICANCE OF THE
STUDY
1. This
research study will be important to those future researchers in economic and
agricultural science who would like to use it as a reference material or for
further investigation.
2. This
study is to create awareness to farmers in Edo state, the reasons of low
agricultural production and also to bring to the notice of the general public
loans for financing agricultural production in the locality.
3. It
will form a good basis to the government for the formulation of policies.
4. To
serve as encouragement to those farmers in the area of study.
HYPOTHESIS
Some question to be tackled in the course of this study has been rise as
follows.
1. Is
collateral security a problem of obtaining credit from commercial banks?
2. Does
high interest rate increase the incidence of bad debt?
3. Does
educational background hinder the potentials of obtaining credit?
4. Is
a credit facility accessible for small scale farmers?
5. Does
bureaulrate process pose a lot of problem or obtaining loans to farmers?
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.
AFFILIATE LINKS:
Comments
Post a Comment