Abstract

This study assessed the impact of the UNDP Micro-finance Programme on the poverty status of farmers in the study area, examined the impact of UNDP’s micro-credit scheme on the beneficiaries, determined the profitability of agricultural enterprises engaged by the farmers, determine the relationship between inputs used and the effect on farmers output and identify the constraints associated with UNDP’s micro-credit scheme. The study was conducted in three (3) Local Government Areas, namely, Ikara, Makarfi and Kauru of Kaduna State. Purposive sampling technique was adopted in selecting the Local Government Areas and farming communities. Data was collected through the use of structured questionnaire and oral interview. A total of fifty four farmers (twenty-seven participating and twenty seven non-participating) were purposively selected from the study areas. The data collected was analysed using descriptive statistics, independent t-test and Cobb-Douglas production function model. The result of the gross margin analysis shows that the average income of participating farmers rises from N48,609.30 to N189,187.00 after participating in the Programme. The study also established that income of the participating farmers in the study area was higher than that of non-participating farmers. The analysis shows that participating in the UNDP programme had a positive impact on the income and profit level of the farmers. This study recommended that the amount of credit facilities provided should be increase so as to increase productivity. The study also recommended that the repayment of credit facilities should be extended to more than a year.

Key words: Impact, microfinance, programme, poverty, alleviation, farmers.