Household level determinants of micro credit access among small holder farmers in Niger Delta Region, Nigeria

The study examined the determinants of micro credit access among small holder farmers in Niger Delta, Nigeria. A multi-stage random sampling technique was employed in the selection of 384 farm households from four States out of the nine States that make up the Niger Delta region of Nigeria. Data for the study were obtained from primary sources using interview schedule guided by structured questionnaire. Descriptive and relevant inferential statistics such as frequency, percentages, mean, Heckman Double Hurdle Model and Poisson Model were used to analyze the data. Results obtained showed that; region of residence, education and organizational membership positively and significantly influenced access to microcredit, while total household income had a negative influence on access to microcredit. Also, results of factors that determined the amount of microcredit received by small scale farmers showed that: farm size and organizational membership positively and significantly influenced the amount of microcredit accessed while; interest rate had a negative and significant effect. In addition, factors that influenced frequency of microcredit accessed showed that: gender, education and interest rate were negative and significant, while, age, borrowing experience and social capital were positive and significant. The results call for policies aimed at provision of access to free and affordable education to enable farmers’ access and process information on credit opportunities. There is also need to encourage farmers to form cooperatives that will enable them access credit with ease. Land reform policies that will enable small holder farmer’s access more land is encouraged