Determinants of Loan Repayment among Small Holder Cooperative Farmers in Remo Division, Ogun State, Nigeria

Adeyonu, A. G. (2016) Determinants of Loan Repayment among Small Holder Cooperative Farmers in Remo Division, Ogun State, Nigeria. Journal of Agricultural Science, 8 (1). pp. 92-99. ISSN 1916-9760

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Official URL: http://dx.doi.org/10.5539/jas.v8n1p92

Abstract

This study investigated the factors that are crucial in improving small holder cooperative farmers’ loan repayment in Remo Division of Ogun state, Nigeria. Primary data used for the study were collected with the aid of well-structured questionnaire. Multi-stage sampling techniques were used to select the 120 respondents. The data were analyzed using descriptive statistics and probit regression model. The results of the descriptive analysis showed that about 56% of the respondents were able to repay their loans promptly while the rest were not. The respondents’ mean age stood at 47 years, the majority of them are males and married with fair level of education. The majority of smallholder farmers in the study area had been farming for more than 20 years, while the household size for the majority of them was 4-6 members with average family size of 5. The results of the probit regression analysis revealed that age, level of education, farming experience, net farm income and loan size obtained were the major factors that increase the likelihood of loan repayment, while the number of family dependants reduces the probability of repayment. To improve loan repayment ability in the study area, this study recommended improvement in human capacity development as well as sensitization of the farmers in the study area about the importance of education.

Item Type: Article
Subjects: S Agriculture > S Agriculture (General)
Depositing User: Dr A. G. Adeyonu
Date Deposited: 12 Jul 2017 16:29
Last Modified: 12 Jul 2017 16:29
URI: http://eprints.lmu.edu.ng/id/eprint/637

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