FACTORS AFFECTING COOPERATIVE FARMERS ACCESS TO AGRICULTURAL CREDIT FROM MICROFINANCE BANKS IN AWKA NORTH L.G.A OF ANAMBRA STATE, NIGERIA

Abstract

This study examined factors affecting cooperative farmers’ access to agricultural credit from micro-finance banks in Awka North L.G.A of Anambra state, Nigeria. Findings reveled that there is a significant difference between the amount of loan applied for and the amount disbursed by the microfinance banks to the cooperative farmers. The joint effect of the explanatory variable in the model account for 96.1% of the variations in the socioeconomic factors influencing cooperative farmers access to agric credit from Microfinance banks; Institutional factors of the cooperative farmers have significant influence in the accessing of agric credit from Microfinance banks. The study recommends that the agricultural credit given to farmers by the microfinance banks should be stepped up so that farmers will have adequate farm credit for agricultural production. Capacity training for cooperative managers is essential. This is because capacity training will help improve the management efficiency of cooperative managers and also improve organizational productivity and access to credit. Apart from socioeconomic factors, institutional or organizational factors like Membership size, Asset base, Management/leadership efficiency, Monitoring/supervision, Location of the societies and Loan repayment history should also be improved on so that cooperative members would continue to have access to agric credit