Determinants Of Demand For Smallholder Farm Credit In Bende Local Government Area Of Abia State.

ABSTRACT

This study investigated the factors that influence the demand for agricultural credit to stallholder farmers in Bende Local Government Area of Abia State. It equally evaluated the effect of the flow of information relating to credit on the farmers. Data were collected using structured questionnaire and direct interviews. A total of 100 farmers were sampled using random sampling. Twenty (20) farmers were selected each from the 5 autonomous communities that made up Bende L.G.A. Data were analysed using descriptive statistics, chi- square and regression analysis. Results show that 92% 'of the respondents were aware of the existence of credit facilities, 66% had secondary education. There was a significant relationship between media used and awareness of credit, that is to say that the media used were appropriate for agricultural information which led to credit awareness and possible demand for credit. Linear function was chosen as the lead equation of the regression result which show that the amount of credit received had the most important influence on the demand for credit by farmers. Interest rate was not significant but conformed to a prior expectation that the higher the interest rate the lower the amount of credit demanded. Income of the farmers had an important bearing on loan demand. Further linear equation had the least F-value which show the overall significant of the regression.