Agricultural credits and Cocoa Production in Selected Local Government Areas of Ondo State
Author(s)
Omosebi, Tolulope R. , Cole, Abimbola A. , Adefulu, A.D ,
Download Full PDF Pages: 38-53 | Views: 477 | Downloads: 126 | DOI: 10.5281/zenodo.5066766
Abstract
Finance is considered as the basic ingredient for each and every economic activity including agriculture, especially in the economy where agriculture is subsistence. Agriculture has been the main-stay of Nigeria’s economy of which cocoa production plays a significant role in the acceleration of the national gross domestic product (GDP), in terms of employment generation, feeding the local industries with raw materials and sustaining the rural livelihood until about the mid-1970s that witnessed oil boom resulting in the neglect of the sector coupled with the introduction of structural adjustment programme (SAP) in 1986 that killed the morale of cocoa producers. Access to credit is a problem for most farmers and is particularly acute for cocoa subsistence farmers which has led to a decline in the quantity of cocoa produced. The study adopted survey research design. The population of the study was 400 cocoa farmers from Ondo State, Nigeria. Multistage sampling technique was used to select respondents. Information and data were elicited from these respondents using well-structured questionnaires. The researcher sought advice from academics and professionals within Babcock University School of Management Sciences. The reliability of this instrument was tested using Cronbach’s alpha coefficient, the result of the pilot test found the questionnaire to be reliable and valid for data collection with the overall Cronbach’s Alpha figure of 86.9The data were analyzed with descriptive and inferential (Linear Regression) statistics for the quantitative analysis to ascertain the effect and relationship of the variables. The findings disclosed that Bank of Agriculture credit had a positive and significant effect on cocoa production in Ondo State, Nigeria (β = 0.544, t = 12.279, p= 0.001; R2 is 0.360). The study concluded that availability of agricultural credit greatly affects cocoa production in Ondo State, Nigeria. The researcher, therefore recommended that the number as well as the value of credit guaranteed to cocoa farmers by finance agencies should be significantly increased so as to enable the farmers expand their production and thereby, reposition the cocoa industry to assume a critical role as a major non-oil foreign exchange earner in the Agricultural transformation plan of Nigeria.
Keywords
Agricultural credit, Ondo State, Cocoa production, Bank of Agriculture, Farm productivity
References
i Abayomi, E. (2017). Realizing the potential of agriculture in Nigeria. CBN Bullion, 26(11), 11-34.
ii Adefeko, A. (2018). Cocoa production and processing in Nigeria: Need for a stimulus. Leadership newspaper.
iii Adewale, B. D., Adeigbe, O. O., & Muyiwa, A. A. (2016). Cocoa seed garden: a means to disseminating improved planting materials for enhanced national productivity: A review. Retrieved from http://www.factfish.com/statistic-country/nigeria/cocoa%20beans,%20yield on 26/11/2018.
iv Agro-Nigeria, (2018). IITA and WUR (Wageningen University and Research) advocates new farming system for cocoa production. Accessed from https://agronigeria.com.ng/author/agronigeria1/ October 26, 2018.
v Agrawal, A. K., Christian, C., & Avi, G. (2014). Some simple economics of crowd funding, innovation policy and the economy 14, National Bureau of Economic Research.
vi Agunuwa, E. V., Inaya L., & Proso, T. (2015). Impact of commercial bank credit on agricultural productivity in Nigeria (Time Series Analysis 1980-2013). International Journal of Academic Research in Business and Social Science, 5(11), 337-350.
vii Alimi, T., & Awoyomi, B. (2001). Spacial effects of cocoa production on rural economy in Idanre-Ifedore area, Ondo state of Nigeria. Asian Journal of Agriculture and Rural Development, 3(2), 56-66.
viii Amos, T. T. (2007). An Analysis of productivity and technical efficiency of small holder cocoa farmers in Nigeria. Journal of Social Sciences, 15(2), 127-133.
ix Auma, D., & Mensah, P. A. (2014). Determinants of access to credit and demand among small holder farmers in Tigray region, Ethiopia. Masters Thesis, Norwegian University of Life Sciences, School of Economics and Business, Oslo, Norway.
x Briquette, (1999). Better practices in agricultural lending, FAO Publication.
xi Central Bank of Nigeria (CBN), (2012). Statistical Bulletin, 2012 Edition.
xii Central Bank of Nigeria. (CBN), (2016). Economic Report, p.10.
xiii CBN (2004), Central Bank of Nigeria (CBN) Annual report and statement of accounts for the year ended 31st December, 2009, Abuja.
xiv CBN (2018), Central Bank of Nigeria (CBN) Statistical bulletin: [online] available:http://www.cenbank.ort/out/publications/statbulletin/rd/2018/stabull-2018.Pdf Accessed: 5 November, 2018.
xv Davies, R. H. (2014). Agriculture: definition and overview. Archaelogical and ethnoarchaeological perspectives. Left coast press.104-113, Walnut Creek (CA).
xvi Ehui, S., & Tsigas, M. (2013). The role of agriculture in Nigeria’s economic growth: A general equilibrium analysis. In Conference of (IAAE), 2(7), 345-356.
xvii Egwu, P. N. (2016). Impact of agriculture financing on agriculture output, economic growth and poverty alleviation in Nigeria. Journal of Biology, Agriculture and Health care, 6(2), 36-42.
xviii Ewetan, O., Fakile, A., Urhie, E., & Oduntan, E. (2017). Agricultural output and economic growth in Nigeria. Journal of African Resarch in Business & Technology, 1(1), 1-11.
xix Eze, O. M. (2017). Agricultural sector performance and Nigeria’s economic growth. Asian Journal of Agricultural Extension Economics and Sociology, 15(1), 1-13.
xx F.A.O. (2004). Food and Agricultural Organization of the United Nations. Financing agricultural term investment. Agricultural finance revisited No.7 p6
xxi F.A.O. (2006). Food and Agricultural Organization, rapid growth of selected Asian countries. Lessons and implications for agricultural and food security synthesis report. Bangkok: regional office for Asia and the pacific.
xxii F.A.O. (2013). Analysis of incentives and disincentives for cocoa in Nigeria. MAFAP SPAAA. Retrieved from www.fao.org/mafap on 12/02/19.
xxiii F.A.O. (2018). Analysis of incentives and disincentives for cocoa in Nigeria. MAFAP SPAAA, monitoring African food and agricultural policies. Retrieved from http://www.fao.org/mafap on 26/08/18.
xxiv FAOSU, (2017). Food and Agricultural Organisation Statistics of United Nations, [Online] http://faostat.fao.org/default.aspx. Accessed on: 2018.
xxv Harris, S. E. (1976). The commercial theory of credit. Journal of political economy, 5(1), 94.
xxvi Hartarska, V., Nadolnyak, D., & Shen (2015). Agricultural credit and economic growth in rural areas. Agricultural Finance Review, 75(3), 302-312.
xxvii ICCO (The International Cocoa Organization) (2017). Annual Report: http://www.icco.org/ retrieved on 28/10 18 http://www.fao.org/docrep/017/i3121e/i3121e00.pdf
xxviii ICCO (2008). Quarterly bulletin of cocoa statistics. Vol. XXXIII, No. 1, Cocoa Year 2006/2007. International Cocoa Organization.
xxix ICCO, (2019). Annual Report: http://www.icco.org/ retrieved on 28/1018 from http://www.fao.org/docrep/017/i3121e/i3121e00.pdf
xxx Ideba, E. E., Iniobong, E., Out, W., & Itoro, N. (2014). Analysis of agricultural public capital expenditure and agricultural economic growth in Nigeria. American Journal of Experimental Agriculture, 4(4), 443-456.
xxxi Idowu, E. O., Osuntogun, D. A., & Oluwasola, O. (2007). Effects of market deregulation on cocoa (Theobroma Cacao) production in Southwest Nigeria. African Journal of Agricultural Research, 2(9), 429-434.
xxxii International Food Policy Research Institute (IFPRI, 2008). Agricultural Public Spending in Nigeria, development strategy and governance division. IFPRI Discussion paper 00789. September, 2008. King Paper: 2002-01.
xxxiii Kehinde, A. A. (2012). Agricultural financing in Nigeria: an assessment of the Agricultural Credit Guarantee Scheme Fund (ACGSF) for food security in Nigeria (1978-2006). Journal of Economics, 3(1), 39-48.
xxxiv Mgbenkai, R. N., & Mbah, E. N. (2016). A review of smallholder farming in Nigeria: Need for transformation. International Journal of Agricultural Extension and Rural Development studies, 3(2), 43-54.
xxxv Ministry of Agriculture, Fisheries and Forest Resources (MANFR), Annual Reports, 2018.
xxxvi Mordor-Intelligence, (2018). Cocoa bean value chain analysis (2019-2024). Retrieved from https://www.mordorintelligence.com on 04/02/19.
xxxvii Muhammed, L. A., & Atte, O. A. (2006). An analysis of agricultural production in Nigeria. African Journal of General Agriculture, 2(1), 50-55.
xxxviii Muhammad, M., & Ashar, K. (2017). Impact of agriculture loan on agricultural farm productivity: Evidence from district Parachinar, kurram agency, Pakistan. Research gate.net. DOI: 10.22194/JGIASS/4.4.757.
xxxix Nahanga, V., & Samuel, A. D. (2014). An empirical analysis of cocoa bean production in Ghana. European Scientific Journal, 10(16), 295-306.
xl Nkang, N. M., Ajah, E. A., Abang, S. O., & Edet, E. O. (2009). Investment in cocoa production in Nigeria: A cost and return analysis of three cocoa production management systems in Cross River state cocoa belt. African Journal of Food, Agriculture, Nutrition and Development, 9(2), 713-727.
xli Odoemenem, I. U., & Obinne, C. P. O. (2010). Assessing the factors influencing the utilization of improved cereal crop production technologies by small scale farmers in Nigeria. http://www.indjst.org/archive/vol.3.issue.2/innocent-17.pdf.
xlii Ogunleye, K. Y., & Oladeji, J. O. (2007). Choice of cocoa market channels among cocoa farmers in Ila local government area of Osun State. Middle-East Journal of Scientific Research, 2(1), 14-20.
xliii Ogunojemite, S. (2017). Some factors affecting the producers, the growing and harvesting of cocoa in Ondo State of Nigeria. In: Production of cocoa, coffee and tea in Nigeria. The Nigeria cocoa board, cocoa house, Ibadan, Nigeria. 93-102.
xliv Obrimah, O. A. (2014). Understanding research design and choice of methodology: A theory based practical approach. Lagos, Nigeria: Jamiro Press Link.
xlv Olagunju, F. I., Akintola, L. T., Ogunniyi, L. T., Fakayode, S. B., & Babatunde, R. O. (2013). Impact of bank of agriculture limited (BOA) on food security status of small –scale farm household in South western Nigeria. International Journal of Accounting and Financial Management Research, 3(1), 1-10.
xlvi Ololade, R. A., & Olagunju, F. I. (2013). Determinants of access to credit among rural farmers in Oyo State, Nigeria. Global J. Sci. Frontier Research, Agric. Vet. Sci. 13(2), 16-22.
xlvii Philip, D., Nkonya, E., Pender, J., & Oni, O. A. (2009). Constraints to increasing agricultural productivity in Nigerian: A Review. Nigeria Strategy Support Program (NSSP) background Paper No. 6.
xlviii Pohlan- Jürgen, H. A., & Pérez, V. D. (2017). In Verheye, W. H. (ed) soils, plant growth and crop production. Eolss publishers company limited. Chapter available at: http://www.eolss.net/sample-chapters/ (Accessed 13 February, 19).
xlix Popoola, O. A., Ogunsola, G.O., & Sulaimon, K. K. (2015). Technical efficiency of cocoa production in Southwest Nigeria. International Journal of Agricultural and Food Research, 4(4), 1-14.
l PwC (Price waterhouse Coopers), (2018). Promoting economic prosperity: Analysis of the state-level business environment in Nigeria, PwC, Nigeria.
li Rahji, M. A. Y. (2000). An analysis of the determinants of agricultural credit approval /loans size by commercial banks in south western Nigeria. Nigerian Agricultural Development Studies, 1(1), 16-25.
lii Wessel, M., & Quist-Wessel, P. M. F. (2015). Cocoa production in West Africa, a review and analysis of recent developments. NJAS - Wageningen Journal of Life Sciences, 74(75), 1–7.
liii Wiggins, E. (2006). Bank credit accessibility and sectorial output performance in a deregulated financial market economy: Empirical evidence from Nigeria. Journal of Finance and Bank Management, 1(2), 36-59.
liv World Bank Development Report (2008). Agriculture for development, available at:http://siteresources.worldbank.org/INTWDR2008/Resources/WDR_00_book.pdf
Cite this Article: