Impact of Anchor Borrowers Programme (ABP) on Rice Production in Ekiti State, Nigeria.
Publication Date: 15/07/2024
Author(s): Tolulope Seun Olubunmi-Ajayi, Olanrewaju Peter Oladoyin, Moyofolorun Opeyemi Adeyeye, Adeyose Emmanuel Akinbola, Justin Orimisan Ijigbade.
Volume/Issue: Volume 7 , Issue 3 (2024)
Abstract:
This study investigates the impact of the Anchor Borrowers Programme (ABP) on rice production in the Irepodun/Ifelodun Local Government Area, Ekiti State. Structured questionnaires were used to collect data from 150 smallholder rice farmers, with 75 having access to ABP loans and 75 without. Descriptive statistics, binary logistic regression, multiple regression, and budgetary techniques were employed for data analysis. The return on investment (ROI) for farmers with ABP loans was 2.48, compared to 2.39 for those without, indicating higher profitability for loan beneficiaries. The average age of respondents was 60.3 years, with 87.3% male, 73.3% having formal education, and 62% married. The mean farming experience was 15.9 years, with an average household size of four members and a farm size of 3.8 acres. Significant factors influencing access to ABP loans included age, educational background, and household size (p<0.05). Additionally, educational background, household size, farm size, and access to ABP loans significantly affected net income from rice production (p<0.05). The study concludes that ABP loans positively impact rice production profitability and recommends that more farmers be given access to these loans to enhance rice production in the area.
Keywords:
Rice, Production, Access to credit, Anchor Borrower Programme (ABP) and Profitability.
