Analysis of the Impact of Savings and Credit Cooperative Societies on Output among Crop Farmers in Niger State, Nigeria: Double Difference Estimator from a Regression Analysis Approach

Abstract

The study examined the impact of savings and credit cooperative societies on crop output among crop farmers in Niger State, Nigeria.  Purposive and random sampling techniques were used to select 85 and 72 beneficiaries and non-beneficiaries of saving and credit cooperative societies (SACCOS). Data were obtained through a well-structured questionnaire. Descriptive statistics, Double difference estimator from a regression analysis were employed for data analysis. Results indicate that the difference between before and after values was 277.50kg, which is the second single difference. The double difference, that is, the difference between the two output differences is 296.03kg. This revealed that the double difference estimates of the crop output of beneficiaries and non-beneficiaries of SACCOS Credit had a positive value. Also, the result of double difference estimates from regression analysis revealed that the coefficient of the interaction term (T_i*P_t) had a positive coefficient of 296.029 and statistically significant at 5% level of significance. Among the constraints encountered by the farmers in their cooperative activities, high cost of farm inputs was ranked first which was followed by inadequate capital. Poor access to loan and high interest rate was ranked third and fourth constraints respectively. The study recommended that savings and credit cooperative societies should also intensify efforts in linking farmers to appropriate source of farm inputs. Also, farmers are encouraged to diversify their livelihood activities by engaging in non-farming activities in order to augment farm family income and thereby alleviate poverty among the respondents.

Keywords: Savings and Credit Cooperative, Crop output, Crop farmers, Niger State