January 2017 Vol.5 No.1

Search Pubmed for articles by:
 

Ettah OI

Other links:
PubMed Citation
Related articles in PubMed





















 

Original Research Article

Analysis of factors affecting credit repayment among cocoa (Theobroma cacao) farmers in Ikom Local Government Area of Cross River State, Nigeria

Ettah Otu Ikoi

Department of Agricultural Economics and Extension, Faculty of Agriculture and Forestry, Cross River University of Technology, PMB 102, Obubra, Cross River State, Nigeria.

E-mail: ettahotu@gmail.com
Tel.: +2348022678802 and +2348037917647

Accepted January 15, 2017

Abstract

This study analyzed factors affecting credit repayment among cocoa (Theobroma cacao) farmers in Ikom Local Government Area of Cross River State, Nigeria. Data were collected from one hundred and twenty (120) respondents and analyzed using descriptive statistics, such as tables, frequency distribution and percentages and multiple regression analysis. The following factors were found to affect credit repayment: very high interest rate charged (66.6% of the respondents), extortion by credit officers which the credit size for cocoa production and late arrival of credit (mostly after planting), little or no gestation period to credit beneficiaries and small credit size. Result of the regression analysis indicated that farm size, off- farm income and credit size were all positively and significantly affecting rate of credit repayment, at various probability levels. While household size, education and age of farmers were variables found not to influence the rate of credit repayment. The following recommendations based on the findings of the study are made: credit institutions should ensure that agricultural credit is released to farmers before the cultivation periods, interest rate for agricultural credit should be low (single digit) and the credit amount given to farmers should be reasonable especially at this inflationary period.

Key words: Agricultural credit, Cocoa, Multiple regression analysis, Repayment