Effects of Credit Utilization on Youth Farmers’ Rice Output in Patigi Local Government Area of Kwara State, Nigeria

The study examined the effects of credit utilization on the output of the youth rice farmers in Nigeria. It also examined the sources of information on credit available to the farmers; the use of the credit and the problems encountered by the farmers in having access to credit. Primary data was used for the study. Descriptive statistics was used to analyze the data collected for the study. Results of the findings showed that “past experience" is the major source of information on credit used by the farmers, though the farmers prefer cooperative societies to every other source of credit information. Banks, cooperative societies and Esusu/saving groups are the major sources of credit to the farmers. The mean amount of credit obtained by the farmers is N132, 301. The most of the farmers spent their credits on fertilizers, seeds and farmland expansion. The major problems faced by the farmers in accessing credit are: insufficient amount, lack of collateral and high interest rates. However, the general effect of credit utilization by the farmers is increased output. It is therefore recommended that banks are situated in the study area and they should disburse sufficient loans to the farmers at affordable interest rates. The farmers should also form cooperative and savings groups in order to enjoy economies of scale in accessing credit facilities.