Efficiency Differentials and Access to Credit among Poultry Farmers in Ogbomoso Agricultural Zone

Abstract

Credit has become a prominent resource in agricultural production in Nigeria in an effort to redress resource poverty endemic among the farming populace. Formal and in formal credit resources have been inaugurated.  This study was designed to examine the efficiency differentials and access to credit among poultry farmers in Ogbomoso Agricultural zone. Primary data were collected from randomly sample poultry farmers. Data were analyzed with frequency counts, percentage, stochastic frontier production function and Logit models. Results show that credit using poultry farmers are more technically efficient than non credit using counterparts. Age of the farmers (X₁) , family size (X₃), educational level (X₃), farming experience (X₄)and membership of poultry farmer associations (X₅) were statistically significant factors influencing technical efficiency. The ranges of technical efficiency were 0.745 to 1.000 with a mean of 0.912 for credit using poultry farmers and 0.730 to 0.999 with a mean of 0.878 for non credit using poultry farmers. It would take an average credit using poultry farmers 9 percent cost savings and an average non credit using poultry farmers 12 percent cost savings to become the best performing farmers in their respective groups. These indicate that there is room for the credit using poultry farmers and the non credit using poultry farmers to improve their technical efficiency.The study concluded by recommending that agricultural credit programmes should be refocused and pursued with more vigour. Such policies should be more youth friendly and targeted more at the experience farmers.

Key words:- Efficiency differentials, Access to credit, Poultry farmers, Agricultural zone