AGRICULTURAL EXTENSION SUPPORT, FINANCIAL ACCESS ANDFINANCIAL MANAGEMENT PRACTICES: EVIDENCE FROM SMALLHOLDERAGRIBUSINESSES IN BENUE STATE, NIGERIA

Abstract

This study examined the relationship between access to financial institutions, financial
management practices, and agribusiness performance among smallholder farmers in Benue
State, Nigeria, while accounting for the influence of extension contact, education level, and
farm size. A multistage sampling procedure was used to select 328 smallholder agribusiness
operators from three purposively selected Local Government Areas. Primary data were
collected using a structured questionnaire and analysed using descriptive statistics, a fivepoint Likert scale, and Ordinary Least Squares (OLS) regression. The findings revealed that
only 38.7% of the respondents had access to formal financial institutions, indicating a high
level of financial exclusion. Farmers perceived agricultural extension services as playing a
positive role in facilitating access to financial institutions (grand mean = 3.46), while
financial management practices were moderate (grand mean = 3.25). Regression results
showed that access to financial institutions was positively associated with agribusiness
performance (B = 0.438, p < 0.001). Financial management practices also exhibited a
positive and significant relationship with agribusiness performance (B = 0.512, p < 0.001).
Extension contact, education level, and farm size were likewise significant predictors of
agribusiness performance. The study concludes that improved access to financial services
and sound financial management practices are associated with better agribusiness
performance among smallholder farmers. It recommends strengthening the financial advisory
role of agricultural extension services, expanding farmers' access to inclusive financial
products, and promoting financial management training through extension programmes and
farmer cooperatives to improve agribusiness outcomes.