Analysis of Agricultural Loan Repayment Behaviour among Poultry Farmers in Jos South Local Government Area of Plateau State, Nigeria

Abstract

This study examined agricultural loan repayment behaviour among poultry farmers in Jos south Local Government Area of Plateau State, Nigeria. In order to conduct the study, 136 poultry farmers were sampled. The study's respondents were chosen using a two-stage sampling technique. Descriptive and inferential statistics were applied to the primary data, which were gathered using a questionnaire and an interview schedule. According to survey results, the majority (65%) of respondents were men with a mean age of 44 years. The majority of respondents (90%) were married, and the average household size was 5 persons. The study also revealed that 1795 birds on average were kept in stock, and that 50% of farmers had tertiary education. Further analysis of the results reveals that 73% of the respondents had no contact with extension services. The outcome also demonstrates a significant level of loan default among farmers with 65% not repaying their loans as agreed. Poultry farmers in the study area obtained financing from both conventional and informal credit institutions. Age, educational attainment, household size and income were shown in the logit regression results to be the important factors influencing loan repayment among poultry farmers. The study recommended funding organizations to support farmers while also educating them on the need for loan repayment. Government and other agricultural stakeholders should make sure that farmers have access to formal education because research results indicate that farmers' educational attainment has a major impact on loan repayment. All the important factors that affected loan repayment should be taken into account when formulating policy. Interest rates on loans from official sources like commercial banks should be reduced. Informal sources should be supported so that farmers in the study area would have wider access to alternative sources of loans.