CHAPTER FIVE

Summary, conclusion and recommendation

Summary

This study has investigated the impacts of agricultural credits on welfare of arable farmers.
The study found a positive and significant relationship between credit and farmer’s and
welfare. The objective was achieved using PSM and logit model. Overall, our findings from the
socioeconomics shows that majority of the farmers are males with 83.79%. This indicates that
more of male have access to credit than female household heads. Also, majority of the farmers
have no formal education with 37.06%.Majority of the household size falls between 11-20 with
43.26%. The result from the determinant of access to credit using the logit models shows that
all the explanatory variables included in the model jointly influence farmers to credit in each
zones.Household size and years of formal education has positive impacts and are significant on
access to credit at 5% and 1% respectively. The PSM results show that out of the 3 types of
psm, common radius is the best with a PS score of 0.002 and that credit access has more effect
on the treated farming household than the untreated farming household and the common
support shows that more observation matches on support than off support.

Conclusion

The study therefore concludes that high number of farmers do not have access to credit.
Farmers into agriculture as an occupation have access to credit than than the non-borrowers
and we accept the hypothesis that access to credit significantly affect household welfare.This
shows that household characteristics such as year of education and household size plays an
important role in access to credit in Nigeria.

Recommendation

1. Government should encourage financial institution especially microfinance bank to

grant micro credit to poor household with little or no collateral.
2. Access to credit should be included in agricultural development programme