Credit procurement and utilization by rural farmers from selected rural Credit Institutions in Imo State, Nigeria

Abstract

This study examines the procurement and utilization of credit by the rural farmers from selected rural credit institutions for sustainable agricultural production and development in Imo State, Nigeria. Two sets of structured questionnaires were administered to the 220 respondents (loan beneficiaries) and the credit institutions respectively. The results showed that an average loan volume of N29,562.27 was granted per beneficiary while only 56.01%of this amount was utilized for production and about 30.95% was diverted for consumption. An increase in the amount of loan per beneficiary to take care of both the production and consumption needs of the rural farmers is recommended. This will enable the beneficiaries to purchase agricultural inputs and thereby adopt yield increasing innovations and techniques thus jettisoning the out modelled and outdated equipment for sustainable production.

Keywords: credit procurement, utilization, credit institutions, sustainable production

International Journal of Agriculture and Rural Development Vol. 5 2004: 156-163