PEASANT FARMERS ATTITUDE AND KNOWLEDGE TOWARDS ACCESSING AGRICULTURAL LOANS IN GAGARAWA TOWN, JIGAWA STATE

Abstract

The purpose of this study was to design and analyze the determinants of credit access by peasant farmers in Gagarawa town of Jigawa state. Specifically, the study aimed to uncover the factors influencing peasant farmers’ access to agricultural credit. A convenient sampling technique using survey questionnaires was employed to collect primary data from 370 respondents, and were analyzed using descriptive statistics and Logit regression model. Result obtained from Logit regression analysis explained predictor variables such as education, experience, annual income size, attitude and knowledge were the key determinants of credit access in the study. The study recommends peasant farmers to be encouraged to attain higher education, have positive attitude towards formal financial institutions from which they can access credits. Commercial banks need to be establish in the area to discourage informal lending that charges exorbitant rate of interest. That will not only improve agricultural production, but will also increase financial inclusion and thereby improve peasant farmers’ livelihood and reduce poverty.

Keywords: Credit access, peasant farmers, agriculture, financial institutions, Gagarawa