Reducing Small Scale Farmers Poverty through Credit access in Kwara State Nigeria

This is a study of credit access by small scale farmers and its impact on poverty reduction in Kwara state. The study made use of survey research design and adapted the Cobb-Douglas production function which measured the productivity of small scale farmers using ordinary least square method. The study also measured profitability, Net farm income and poverty status of borrowers and non-borrowers. It was found that though credit users had higher productivity, profitability and Net farm income compared to non-credit users, the difference was insignificant. Also, it was found that the poverty level of the famers who had access to credit was lower than that of farmers who did not have access to credit. Hence, the study concludes that credit can guarantee poverty reduction and also assist to include small scale farmers in the growth process if it is made available in sufficient quantities. The study therefore recommends an increase in credit available to small scale farmers through collaborative efforts between formal financial institutions and government since credit can positively impact on poverty reduction. Keywords: Credit, Small Scale Farmers, Poverty reduction. Gel Classification: Q1

Reducing Small Scale Farmers Poverty through Credit access in Kwara State Nigeria

This is a study of credit access by small scale farmers and its impact on poverty reduction in Kwara state. The study made use of survey research design and adapted the Cobb-Douglas production function which measured the productivity of small scale farmers using ordinary least square method. The study also measured profitability, Net farm income and poverty status of borrowers and non-borrowers. It was found that though credit users had higher productivity, profitability and Net farm income compared to non-credit users, the difference was insignificant. Also, it was found that the poverty level of the famers who had access to credit was lower than that of farmers who did not have access to credit. Hence, the study concludes that credit can guarantee poverty reduction and also assist to include small scale farmers in the growth process if it is made available in sufficient quantities. The study therefore recommends an increase in credit available to small scale farmers through collaborative efforts between formal financial institutions and government since credit can positively impact on poverty reduction. Keywords: Credit, Small Scale Farmers, Poverty reduction