Financial performance of soybean farmers in Vandeikya Local Government Area of Benue State, Nigeria

Abstract

Soybeans is versatile in usage but the yield is low. To sustain and improve its production, its financial performance, given the resource-poor status of rural farmers, is greatly important. Credit access is sine qua non in this direction. Hence, the study assessed credit access and financial performance of soybeans farmers in Vandeikya Local Government Area of Benue State, Nigeria. Stratified sampling technique was used to select 119 farmers who either had or did not have credit access. This reflects a quasi-experimental design where the treatment and control groups comprised farmers with and without credit access, respectively. Primary data were obtained with structured questionnaire and analysed with frequency distribution and financial ratios such as gross margin, operating ratio and return on investment. Independent samples ttest was used to ensure that any observed difference was due to error of randomization. Findings show that majority of the farmers lacked credit access (60.50%). The mean gross margin per hectare was significantly (p < 0.01) higher for the treatment group (N264,753.90 ± 12,597.15) than the control group (N152,412.60 ± 4,773.53). The mean return on investment per hectare was also significantly (p < 0.01) higher for the treatment group (3.06 ± 0.29) than the control group (2.13 ± 0.10). Therefore, soybean production was adjudged to be profitable and significantly influenced by credit access. It was recommended that financial institutions and the export promotion council should make credit available to soybeans farmers.