ABSTRACT

This study examined the determinants of Savings among Rural Farm Households

in Ehime Mbano LGA. Of Imo State. It considered the socio-economics factors

influencing the level of savings by rural farm households, determined their income

and problems households encounter in trying to save, it also identified the factors,

which constrain the level of savings and recommendations made with a view of

deriving policy measures. A total of 120 respondents were randomly selected

from 4 major clans in the Local Government and were interviewed orally and with

the use oF structured questionnaire. Analysis was done using simple statistics like

tables, 11 tealis, fi'cqucncics, percentages and regression analysis. In saving which

include; education, marriage security liquidity, business housing, and

transportation were reasons for savings. The regression analysis showed that

disposable income, level of education, tax, farm size, and assets were all

'significantly positive determinants of savings. The analysis showed that most

farmers cultivated farmland below 2.9 hectares which represents 87.6 percent.

The result showed that most farmers (73.96 percent) earned below 79,000 per

annum. A iiumber of factors militated against savings by the farmers, which

included the lirin of saving, where to save, low income and small size of

farmlands. Recommendations were made on how to improve the levels of savings

of the farmers.