Effects of Micro-credit Scheme on Agricultural Production among Members of Farmers Development Union, Oyo State, Nigeria

This study examined the performance of micro credit schemes on agricultural production in Oyo State with a case study of Farmers’ Development Union (FADU). Primary data were collected using a sample size of two hundred farmers disaggregated into one hundred beneficiaries and one hundred non-beneficiaries of (FADU) credit schemes from the identified four zones (Egbeda, Omi-Adio, Lagelu and Akinyele) used for the FADU operation in the state. Frequency distribution, budgetary analysis and ordinary least square multiple regression analysis were used to analyze the data obtained from the survey. The socio-economic characteristics of the respondents revealed that 67% of the respondents were males whereas 33% were females between the ages of 51and 60 years. The profitability analysis showed that was a positive annual gross margin per hectare of beneficiaries (N104,136.00) was higher than that of non-beneficiaries (N70,604.00) at p<0.05, thus implying profitable of food production but higher profitability for FADU beneficiaries. Factors affecting gross marging obtained in food production in the study area include farm size (p<0.05), amount of loan granted (p<0.05), labour (p<0.05) and household size (p