Open Access Original Research Article

Formal Credit Supply Determinants of Agricultural Contribution to Gross Domestic Product (GDP) in Nigeria (1992-2012)

S. I. Ogbonna, C. K. Osondu, C. O. Emerole

Asian Journal of Agricultural Extension, Economics & Sociology, Page 1-11
DOI: 10.9734/AJAEES/2016/18106

There is no gainsaying the fact that agriculture is the second largest contributor to Nigeria Gross Domestic Product (GDP). To sustain contribution of agriculture to GDP, formal financial institutions were induced by moral suasion and correction to extend a minimum prescribed percentage generation of their loanable funds at concessionary interest rate to agriculture. This study specifically determined formal credit supply factors that influenced agricultural contribution to GDP; and discussed constraints to formal financing of agriculture in Nigeria identified in the literature. Time series data, covering periods of 1992 to 2012, sourced from the Central Bank of Nigeria statistical bulletin and National Bureau of Statistics, and Information got from other published studies on constraints to agricultural financing in Nigeria were used. Co-integration, error correction model and Ordinary Least Square regression technique were used for data analyses; both Augmented Dickey-Fuller (ADF) and Phillip-Peron (PP) tests were adopted in testing for the unit root. Outcome of the unit root and co-integration tests showed that the variables were stationary and co-integrated in the long run. The Ordinary Least Square regression estimation showed that total government expenditure in agriculture, interest rate and total credit accessed by farmers were credit supply factors that influenced agricultural contribution to GDP in Nigeria within the period under review. Government should encourage multi-sourcing of agricultural credit to drive farmers’ innovativeness and efficiency and thus minimize any risk of monopoly in farm credit supply. Widening of financial markets will engender competition, reduce interest charges and increase contribution of Agriculture to GDP.

Open Access Original Research Article

Rice Importation in Northern Region of Ghana; Its Impact on Domestic Rice Production and Some Policy Measures

Mohammed Tanko

Asian Journal of Agricultural Extension, Economics & Sociology, Page 1-11
DOI: 10.9734/AJAEES/2016/22970

The paper assessed the volume of imported rice in Northern region of Ghana, its effects on domestic rice production and the essential policy measures needed to improve the production of rice in the region. The Johansen method of cointegration was used to test the long run co-movement of prices of imported rice at the central market (Tamale) and that of domestic rice is selected districts markets. Granger causality and Vector Error Correction Models (VECM) were used to detect the price leadership direction and the extend of prices response to the re-establishment of long run equilibrium when there is distortion in the market respectively. Statistical figures served as evident that Ghana and for that matter Northern experienced a flooding of imported rice leading to its share of the market stood at 76% against 24% share of domestic rice.  The results reflect a strong long run relationship between prices of imported rice in the Tamale market (central market) and prices of domestic rice in the districts markets. Also, the causality results indicate no price leadership except in the case of Saboba where there is bilateral causality. Analysis from the VECM shows that, domestic rice prices in the various districts markets respond to price shock when there is disequilibrium in the long run. Based on the findings, there is the need to implement appropriate government policies to improve domestic rice production in the region – imposing higher tariff to reduce rice importation, improvement in domestic rice standard to enable it compete effectively and effective and efficient dissemination of information (advertisement) to the target group to create their awareness about the quantity and quality of domestic rice in the local market.

Open Access Original Research Article

Economic and Institutional Elements of Loan Repayment Capacity of Smallholder Farmers in the Transitional Zone of Ghana

Vincent Abankwah, Dadson Awunyo-Vitor, Yussif Abdul-Rahman Seini

Asian Journal of Agricultural Extension, Economics & Sociology, Page 1-13
DOI: 10.9734/AJAEES/2016/21946

Farmers in developing countries have been identified as the most defaulting group of credit beneficiaries. While credit remains the second largest source of farm capital, prospective borrowers are denied access to credit as a result of high loan delinquency among farmers. This phenomenon does not only reduce farmer productivity but contributes also to dwindling household income and food security. In order to improve agricultural credit programmes and make them sustainable, it is imperative to examine the loan repayment capacity of farmers. The objective of this study was to identify the borrower-specific characteristics as well as institutional factors that determine the loan repayment capacity of smallholder farmers. The study was conducted in the Ejura-Sekyedumasi District and Mampong Municipality of Ghana. Primary data used for this study were collected from a cross section of smallholder farmers who received credit from formal and semi-formal credit institutions for farming activities between 2009 and 2011 farming seasons. A two-stage sampling technique was used to select 120 loan beneficiary farmers comprising 60 defaulters and 60 non-defaulters. The data set was analyzed using descriptive statistics and probit model. The study revealed that farmer’s age, sex, household membership, income and farming systems significantly influence loan repayment capacity. More so, relatively low interest rate, post disbursement monitoring, moratorium and repayment schedule were institutional factors found to influence loan repayment by smallholder farmers.

Open Access Original Research Article

Participation of the Saotal Farmers in Agricultural Activities of CARITAS in Dinajpur District of Bangladesh

H. M. A. Sufian, M. R. Karim, M. A. S. Mondol, M. S. Rahman, N. Muhammad

Asian Journal of Agricultural Extension, Economics & Sociology, Page 1-10
DOI: 10.9734/AJAEES/2016/23147

The main purpose of this study was to describe 10 selected characteristics of the Saotal farmers, to determine the extent of participation of the Saotal farmers, to explore the relationship between the selected characteristics of Saotal farmer and their participation in agricultural activities of CARITAS and to identify the problems faced by the Saotal farmers in agricultural activities of CARITAS. Data were collected using interview schedule from a sample of 96 Saotal farmers selected by multistage random sampling procedure from 10 villages of Biral and Chirirbandar upazila of Dinajpur District during 1 September 2012 to 15 October 2012. Ten selected characteristics namely age, educational qualification, farm size, agricultural training received, annual income, credit received, cosmopoliteness, NGO participation, extension communication exposure and attitude towards NGOs of the Saotal farmers were considered as independent variables while their participation in agricultural activities of CARITAS constituted dependent variable. The dependent variable was measured based on three aspects of agriculture namely crop cultivation, livestock rearing and homestead plantation and finally overall agricultural participation was determined by summing up these aspects. Among the 21 (seven from each) selected activities of crop cultivation, livestock rearing and homestead plantation, it was found that the top participation of the Saotal farmers were use of modern seeds, cleaning cowshed and preparation of ideal pit respectively. In case of overall participation, highest proportion (60.41 percent) of the Saotal farmers had medium participation compared to 33.37 percent low and only 5.20 percent high. Among the 10 independent variables six namely educational qualification, farm size, agricultural training received, annual income, credit received and extension media exposure showed positive relationships with the dependent variable while other four namely age, cosmopoliteness, NGO participation and attitude towards NGO were not correlated significantly. The top three problems faced by the respondents in participating agricultural activities were attack of insect in trees, problem in training and pruning, and regular feeding of cattle, while the least problem was preparation of ideal pit.

Open Access Original Research Article

Effect of Participation in Community-based Agriculture and Rural Development Project on Socio-economic Status of Rural Dwellers in Northern Nigeria

Michael Adejare Adegboye

Asian Journal of Agricultural Extension, Economics & Sociology, Page 1-13
DOI: 10.9734/AJAEES/2016/22058

Community-Based Agriculture and Rural Development Project (CBARDP) is expected to enhance Socio-Economic Status (SES) of rural dwellers; consequently impact positively on general welfare of the rural dwellers. However, impact of the project on SES of rural dwellers is yet to be ascertained. Thus, the effect of participation in CBARDP on SES of rural dwellers in northern Nigeria was investigated. Three of the five participating states were randomly selected. Three participating and non-participating Local Government Areas (LGAs) were chosen from selected states using stratified random sampling. One Rural Village Area (RVA) from each of the participating and one ward from non-participating LGAs were randomly selected. Five percent of registered participants in each RVA and equal proportion of non-participants were selected to obtain 410 respondents. Interview schedule was used to collect data. Participants had high SES (113.9±20.1) than non-participants (106.6±14.7) as 5.9% and 0.7% of participants and non-participants attained better-off SES. Respondents’ SES was significantly related to age (r = 0.246) and monthly income (r = 0.438) and significantly related to marital status (χ2 = 926.644) and education (χ2 = 66.176). Similarly, SES was significantly influenced by knowledge (r = 0.220), attitude (r = 0.187) and benefit derived (r = 0.142) from the project. Significant difference existed between SES of participants and non participants (t = 4.612). The project impacted positively on participants’ socio-economic status but delayed implementation constituted major challenge to project participants.

Open Access Original Research Article

Determinants of Access to Agricultural Extension Services: Evidence from Smallholder Rural Women in Northern Ghana

Abdul-Hanan Abdallah, Awal Abdul-Rahaman

Asian Journal of Agricultural Extension, Economics & Sociology, Page 1-8
DOI: 10.9734/AJAEES/2016/23478

Aims: To provide empirical evidence on the determinants of access to extension services in Northern Ghana.

Study Design: Cross sectional.

Place and Duration of Study: Kumbungu and Sagnarigu Districts of the Northern region; Builsa North and Pusiga Districts of the Upper East; Wa West and Jirapa-Lambussie Districts of the Upper West and Tain and Nkoranza South Districts of the Brong Ahafo regions. The study was conducted in thew 2012/2013 cropping season[F1] .

Methodology: We employ a logistic regression model on a data from 320 women which was obtained by multi-stage sampling procedure.

Results: Our results show that the major determinants of extension access include the square of age, farm size, group membership, time spent on the farm and access to fertilizer.

Conclusion: Our results thus, confirmed the importance of the personal and household attributes, farm/plot characteristics, socio-economic and institutional factors in accessing extension services. We therefore call for formation of women’s groups to improve their access to extension services.