Probit Analysis of Cotton Farmers’ Accessibility to Credit in Northern Guinea Savannah of Nigeria
Asian Journal of Agricultural Extension, Economics & Sociology · pp. 296–301 · Published 19 Dec 2014
10.9734/AJAEES/2015/13538Abstract
The study examined the determinants of credit accessibility among cotton farmers in the Northern Guinea Savanna zone of Nigeria. A purposive sampling technique was adopted to select two hundred and forty (240) cotton farmers for enumeration. Primary data were collected using structured questionnaire. Descriptive statistics and the probit regression model were used to analyze the data. The results revealed that formal education, off-farm income, household size, farm size and farming experience were factors that significantly influenced credit accessibility to cotton farmers. Farmers had more access to informal sources of credit than the formal sources and the rate of accessibility to credit is highest among those sourcing from relatives and friends. The study recommends the need to educate farmers and create awareness on the importance of attaining higher level of formal education as it influences their farm output, credit demand and making rational choices.
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