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: 507 | Downloads: 133 | 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
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