EFFECT OF MICROFINANCE AGRICULTURAL CREDITS AND INSURANCE ONSMALL-SCALE FARMERS IN KADUNA STATE, NIGERIA

Abstract

The performance and Contribution of Small-scale farmer’s productivity has continued to
generate an increased attention among scholars and policy makers around the world. One of the
main reason that warrant this research to be undertaken is the perceived declining agricultural
productivity in Nigeria which in turn not keeping pace with our population growth result in
record high of food inflation, poverty and unemployment. Hence, we aim to investigate the
impact of microfinance agricultural credits (MAC) and microfinance agricultural insurance
(MAI) on small-scale farmer’s productivity (small-scale FP). Primary data were collected
using self-administered Questionnaire completed by 351 beneficiaries of anchor borrower
program (ABP) in the year 2020 accessed under maize farmer’s association of Nigeria
(MAAN). The data obtained were analyzed using statistical package of social science (SPSSVersion 26) and partial least squares structural equation modeling (PLS-SEM-version 4).The
results indicate that MAC does not have significant relationship with small-scale FP. Likewise,
the influence of MAI on small-scale FP found to be insignificant. Thus, this work provided
important implication for policy makers, stakeholders and financial institution responsible for
agricultural development. In particular, the findings emphasis the needs to brainstem for
genuine, inclusive, diversify and consistent microfinance agricultural programs that will be at
the core door steps of small-scale farmer’s; community, home and farms. The program should
be consistent enough to overcoming the obstacles of corruption, lack of awareness, bias and
continuity of policies between governments as key concerns to tackle small-scale farmer’s
production inability.