Poultry Farmers’ Access to Agricultural Loans in Osun State, Nigeria

Abstract

The study assessed poultry farmers’ access to agricultural loans in Osun State, Nigeria. The study adopted a descriptive survey research design, with data collected through the administration of a questionnaire. A cluster sampling technique was employed to select 180 poultry farmers for the study. Data was analyzed using frequency, percentages, mean score and Pearson Product-Moment Correlation. Majority accessed loans through cooperative societies (91.1%), microfinance banks (85.0%), and commercial banks (63.3%). High interest rates ( = 4.77), stringent risk assessment (= 4.44), and scale of operation ( = 4.35) were major factors affecting access to credit. Poultry farming experience and household size were positively associated with loan access (r=0.274, r=0.326) (r=0.274, r=0.326), whereas annual income was negatively associated (r = -0.242) (r = -0.242). Poultry farmers in Osun State are largely, sourcing agricultural loans from cooperative societies, microfinance banks, and commercial banks with cooperatives playing the most important role. The study recommends that stakeholders, government and other financial institutions should simplify application procedures, reduce bottle necks and adopt farmer friendly lending conditions to improve farmers’ access to loans.