Does Agricultural Financing Really Have an Impact on Farmers' Choices between Different Farming Activities? Evidence from Nigeria

36 Pages Posted: 21 Aug 2014 Last revised: 3 May 2017

See all articles by Oghenovo A. Obrimah

Oghenovo A. Obrimah

FISK University

Faith Abimiku

Independent

Patricia Briggs

Isaac Jasper Boro College of Education

Date Written: May 2, 2017

Abstract

We find financing helps make up for deficiencies in farming experience and the absence of crop insurance, such that farmers that have less experience or do not have crop insurance are more likely to adopt productivity enhancing activities. We also find farmers are less likely to spend on output related items (additional farming acreage), as opposed to productivity enhancing items (such as hybrid seeds or fertilizers) as credit constraints become more severe. These findings provide evidence that financing increases farmers' willingness or ability to adopt productivity enhancing activities. Combined, our findings indicate the effectiveness of agricultural financing policies at achieving improvements in agricultural output and productivity can be enhanced by benchmarks of farmers' financing needs as functions of farmer characteristics such as land size, experience, or absence of crop insurance.

Keywords: Agriculture Financing, Credit Constraints, Peasant Farmers, Output, Productivity, Crop Insurance, Farmer, Experience, Activities

JEL Classification: Q12, Q14

Suggested Citation

Obrimah, Oghenovo A. and Abimiku, Faith and Briggs, Patricia, Does Agricultural Financing Really Have an Impact on Farmers' Choices between Different Farming Activities? Evidence from Nigeria (May 2, 2017). Available at SSRN: https://ssrn.com/abstract=2483849 or http://dx.doi.org/10.2139/ssrn.2483849

Oghenovo A. Obrimah (Contact Author)

FISK University ( email )

1000 17th Ave N
Nashville, TN TN 37208-3051
United States
4049404990 (Phone)

Faith Abimiku

Independent ( email )

Patricia Briggs

Isaac Jasper Boro College of Education ( email )

Sagbama P.M.B. 74
Yenagoa, Bayelsa State
Nigeria

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