Challenges of Accessing Agricultural Credits by Farmers for Increased Food Production in Delta State, Nigeria
Authors:   Department of Agricultural Education, Federal College of Education (Technical), PMB 11,   Omoku, Rivers State., A. B Odinwa , B Johnny ,   Department of Agriculture, Ignatius Ajuru University of Education, Port Harcourt, Rivers State, C.O Ekeogu ,   Department of Agriculture, Ignatius Ajuru University of Education, Port Harcourt, Rivers State, O. Chukuigwe ,   Department of Agricultural Extension, Federal University of Technology, Owerri,
Published: July 2022

The study investigated the challenges of accessing agricultural credits by farmers for increased food production in Delta State, Nigeria, the specific objectives were to: examine the level of awareness of the sources of agricultural credits to farmers in the study area, ascertain the extent of accessibility of such agricultural credits to farmers, and identify the challenges facing farmers in accessing agricultural credits in Delta State. Descriptive survey design was adopted to assess the farmers. Purposive sampling technique was used to select three LGAs and a total of nine (9) communities while 32 respondents from each of the 9 communities were randomly selected given a total of two hundred and eighty-eight (288) respondents and used for the study. Weighted mean scores derived from the Likert type rating scale was used to analyze the data collated for the study, while the Analysis of Variance (ANOVA) was engaged for test of significance at 0.05% level of significance. The findings showed that the farmers were highly aware of Personal savings (GM = 2.49), Cooperative societies (GM = 2.47), Government bodies (GM = 2.28), Micro Finance bank (GM = 2.28) and Commercial Agriculture Credit Scheme (GM = 2.18) among others as sources of agricultural credits in Delta State. It indicated that Personal savings, Loan from Cooperative societies, Bank of Agriculture (BOA), Micro Finance Bank and the Commercial Agriculture Credit Scheme among other formal and informal sources of agricultural credits were highly accessible to farmers in the area. Finally, it showed in the degree of seriousness that: Lack of trust by the lending institutions (GM = 3.32), Poor leadership vision in agriculture (GM = 3.25), Lack of awareness of available agro credits (GM = 3.22), Low perception of farming enterprise by the people (GM = 3.20), High interest rate (GM = 3.05), Not having the required savings with the lending institution (GM = 3.02), beside others were the most serious challenges confronting farmers in accessing agricultural credits in Delta State. All the test results (ANOVA) showed no significant difference among the three LGAs at P > 0.05 significant level. The study therefore, recommended that: Extension Services should be beefed up in the State to cover the gaps of unawareness of agro credit sources and teach farmers how to access them, Extension agents should be encouraged to supervise and recoup government agricultural loans from farmers to facilitate the flow of agricultural credits in the State, State Government should show concern and make policies that would relax the collateral security to enable the poor farmers access to credits as at when due, and A drastic measure should be put in place by government to punish defaulters who bridge the revolving loans from circulation in the State.