Determinants of smallholder vegetable farmers’ access to formal credit in Isiala Ngwa South Local Government Area of Abia State, Nigeria

Access to formal credit is one of the major problems hindering agricultural productivity among smallholder farmers who apparently, are the major producers of food in the country. This study examines the socioeconomic factors influencing smallholder vegetable farmers’ access to formal credit in Isiala Ngwa South Local Government Area, Abia State; specifically, seeks to describe the socio economic characteristics of smallholder vegetable farmers, examine the level of credit access among beneficiaries and identify constraints faced by smallholder vegetable farmers. The study used primary data collected from one-hundred vegetable farmers across 10 purposively selected communities through the aid of structured questionnaires and oral interviews. The study employed descriptive statistics such as mean and percentage and a probit model as analytical tools. Results indicated that education and the level of farm experience at 10% level of significance had positive and significant influence on vegetable farmers’ access to formal credit in the study area. Further analysis showed farmers were constrained with high interest rates, short repayment period and lack of collateral among others. The study recommends reduction in the interest rates of loans given by formal institutions and an extended repayment period as well as the need for a timely disbursement of fund. There is also need for policy aimed at provision of free and affordable education to enable farmers’ access and process information on credit in the study area.Keywords: Smallholder farmers, vegetables, production, and credi