African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6843

Article in Press

The determinants and Impact of Cooperative Loan on Agricultural Productivity of Cassava-based Nigerian Farmers: Evidence from Oyo State, Nigeria

Olagunju Funke Iyabo Kirbir, Kayode Salman, Wale Ayojimi

  •  Received: 27 April 2021
  •  Accepted: 29 July 2021
Credit is a major constraint to agricultural production in Nigeria. This study therefore analyzed the impact of cooperative loan on cassava-based farmers’ production in Oyo State Nigeria. A random sampling technique was used to select 1120 respondents in the study area and structured questionnaire was administered to collect relevant data. Descriptive statistics and propensity score matching (PSM) for the study. The result revealed that most of the respondents were male and married with average household size of 7.6. The result also revealed the region of common support and the number of blocks, this ensures that the mean propensity score is not different for treated and controls in each block, the balancing property is satisfied at the block one (0.0374802). The average treatment on treated (ATT) of the nearest neighbor matching, radius matching and stratification was positive and statistically significant, and this indicated that cooperative loan has a positive impact on cassava-based farmer’s output in the study area. Insufficient credit, invasion of herds on farmland, marketability of farm produce and high interest rate were among the prominent constraints facing cassava-based farmers in the study area. Therefore, effort should be made by the stakeholders in addressing the situation for increased food production.

Keywords: Cooperatives, PSM, Loan, Impact, cassava based, farmers