Analysis of the Socio-Economic Characteristics of Agricultural Credit Guarantee Scheme (ACGS) Credit Beneficiaries in Bauchi State, Nigeria

Abstract

The study analyzed the socioeconomic characteristics of beneficiaries of credit under the Agricultural credit guarantee scheme in Bauchi State, Nigeria. Four hundred and five (405) respondents were drawn from the 3 zones of the Bauchi State Agricultural Development Programme for this study. Both primary and secondary sources of data were used and duly acknowledged. Results of the study showed that majority (73.8%) of the Agricultural credit guarantee scheme loan beneficiaries were males and Married (76.5%), Age range of 36-55 years with a mean of 45.8. Household size of 1-8 persons per family (77.8%), acquired secondary school level of education (19.5%), post-secondary education (11.6%), primary education (31.1%), and Qur’anic education (37.7%). Majority (78.1%) have a farm size of 1-2 hectares, with a farming experience of 1- 9 years (92.6%). Farming was their Primary occupation (80.7%). The majority were crop farmers (74.0%), livestock farmers (14.3%) while (11.7%) practice both crops and livestock production. The result further revealed that (84.6%) were members of farmer’s organizations. Major sources of information on Agricultural credit guarantee scheme loan were Radio/TV programme (30.8%), BSADP-Extension workers (32.1%), CBN /Other banks (17.3%). Major constraints identified in the study were, delay in disbursement of loan (40.7%) low access to information (22.3%), lack of collateral security (19.7%) and also administrative / interest charges accounted for (17.3%). It is therefore recommended that Central Bank of Nigeria and the Bauchi State Agricultural Development Program should increase the awareness level of the loan to farmers. Disbursement should be timely and use of surety should be adopted instead of collateral security like land and buildings. More banks should participate in the scheme to cover more farmers in the state.