Abstract

This study assessed possible differences in access to loans across gender lines and determined the factors influencing their repayment capacities among arable crop farmers in Rivers State. A stratified random sampling technique was employed to select 120 farmers who supplied data via a set of structured questionnaire and interview schedule. Tobit model was used to analyze the data gathered from the field. It was noted that mean repayment rate of loans in the area was relatively low (59%). [EA1] The study found that gender was not a major determinant of loan default; rather, four variables to watch when disbursing loan to crop farmers in the area should include poverty status of the borrowers, sales volume of the farmers’ products, extent of diversification of the farms and farm households’ sizes. These four variables had slope coefficients that conformed to theoretical expectations and were statistically significant at 1% level. It was recommended that donors, commercial banks and credit institutions should aim at empowering farmers with loans (especially those who are well diversified to minimize risks of loan default). Government should encourage farmers to diversify their enterprises and improve their technologies to increase their sales and profit levels through a well-articulated agricultural extension programme.

Key words: Gender, poverty, farm credit, arable crop farming, loan default, credit rationing, Tobit model.