Challenges of Small Scale Farmers Access to Micro Credit (Bada Kaka) in Gassol LGA, Taraba State, Nigeria

¹E. D. Oruonye and ²Musa Y. N.

¹Department of Geography, Taraba State University, P.M.B. 1167, Jalingo, Taraba State, Nigeria.

²  Department of Agronomy, Taraba State University, P.M.B. 1167, Jalingo, Taraba State, Nigeria

*Corresponding Author E-mail: emmyodan@yahoo.uk; 

eoruonye@gmail.com;  Tel: 07039271480; 08025250182

Accepted 22 May, 2012

Abstract

Farm credit accessibility has been seen as the surest way of breaking the vicious cycle of poverty in the rural areas of developing countries, particularly in sub Saharan Africa. This study examines the challenges of farm credit accessibility by small scale farmers in Gassol LGA of Taraba State, Nigeria. One hundred and forty (140) farmers were randomly selected from 4 communities in the 2 districts of the LGA. Data collected were analysed using descriptive statistics tools. The results of the findings show that 70 percent of the farmers in the study area participated in the local micro credit scheme (bada kaka). 68 percent of the farmers viewed this local method of micro credit as a method of negotiating a farmer’s produce before the commencement of the farming season. About 17% of the farmers believed that the local micro credit system is exploitative and does not guaranty increase agricultural productivity. In conclusion, there is need to redesign government agricultural micro credit financing policy to guaranty continuous and timely provision of micro credit to farmers at a very low interest rate.

Keywords: Accessibility, Bada kaka, Challenges, Farm credit and Small scale farmers