UTILIZATION OF AGRICULTURAL LOAN AMONG COOPERATIVE POULTRY FARMERS IN IJEBU NORTH LOCAL GOVERNMENT AREA OF OGUN STATE
Keywords:
Poultry, loan, cooperative, livelihood, OLSAbstract
Utilization of agricultural loan is a key component of farm success. It enhances good productivity. The study assessed the utilization of loan among cooperative poultry farmers in Ijebu North Local Government Area of Ogun State. Multiple sampling technique was used in selecting the sample population. Four wards were selected from the Local Government Area from which 120 respondents were selected from 22 communities in the wards. Descriptive statistics such as frequency distribution, percentage and means, and Ordinary Least Square (OLS) regression were used to analyse data collected. Results indicated that most respondents were between the age bracket of 41 and 50 years. Majority of the respondents were married, with household size between 4 and 6 persons. Most respondents had poultry farming as their major occupation. OLS regression analysis was used to determine the factors affecting loan accessibility among farmers in the study area. The coefficient of determination (R2) of the factors affecting loan accessibility was found to be 0.511 (51.1%). Monthly income, interest paid, number of birds, and mode of loan repayment were positively significant among the eleven (11) variables modelled. This implies that increase in these factors will lead to an increase in the farmers’ loan accessibility. Farmers are encouraged to channel resources to more productive purpose s. OLS regression analysis was used to examine the default rate among sample farmers in the study area. The R2 of loan default was found to be 0.517 (51.7%); this is an indication that 51.7% of the variation in the factors affecting loan default rate among sampled poultry farmers was explained by the explanatory variables (socio-economic characteristics). Out of the 9 variables modelled, the age of respondents, sex, amount-borrowed, educational level of respondents and duration of loan repayment were positively significant. This implies that increase in these factors will lead to an increase in the farmers’ ability to repay loan on time. It was recommended that extension services should be brought to the farmers as most of them are learned.
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