Financial inclusion and agricultural production among smallholder farmers in rural communities in Ebonyi state, Nigeria

Abstract

This study examined the effects of financial inclusion on the agricultural production of smallholder-rural farmers in Ebonyi State, Nigeria. It ascertained the effect of accessibility of loans on the productivity of rural farmers, and the extent to which credit availability affects the output of smallholders. A survey method was adopted in the study with a sample of 400 rural farmers. A structured questionnaire was used for data collection. Simple percentages and charts were used for the descriptive analysis. The hypotheses were tested using Analysis of Variance (ANOVA). The result showed that credit accessibility, credit availability, willingness to obtain credit, and gender disparity in accessing credit have no significant (p > 0.005) effect on the performance of smallholder-rural farmers in Ebonyi state. The study concluded that financial inclusion had no significant effect on the performance of rural farmers in Ebonyi state. This could be informed by the resilience and coping strategies of these smallholder farmers. The study recommended that, among others that government should intensify efforts to ensure that credit is made accessible and attractive to these rural farmers. Farmers also need financial education to understand how best to apply credit to their agricultural production to enhance productivity.

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