EFFECT OF COMMERCIAL AGRICULTURE CREDIT SCHEME ON BENEFICIARY FARMERS’ INCOME IN KWARA STATE, NIGERIA

This study examined the impact of Commercial Agriculture Credit Scheme (CACS) on farm households' income in kwara State, Nigeria. The study stemmed from the need to boost agricultural production in Nigeria through adequate finance. Primary data obtained from 119 beneficiaries of the scheme were used for the study. Descriptive statistics and regression analysis were used for the analysis. The results showed that most of the beneficiaries were middle-aged (26 - 55years, mean = 4 lyears), male (75.6%), married (97.5%), had formal education (91.6%) and mostly engaged in arable crop production and mixed farming. The study also showed that the educational level of the beneficiaries, amount of loan obtained and cooperative membership were positively related to the total revenue of the beneficiaries while age of the household head was inversely related to it. The major problems encountered in the scheme were untimely disbursement of loan and short repayment period. However, the study revealed that the scheme had a positive and significant effect on income of the beneficiaries. It is therefore recommended that timely disbursement of loan, giving the beneficiaries sufficient time before repayment, encouragement of young and educated prospective beneficiaries as well as involvement of the beneficiaries in cooperative societies would better enhance the impact of the scheme on the beneficiary fanners.