ABSTRACT

The study analyzed the effect of selected agricultural financing policies on crop production in Nigeria from the period 1980- 2016. Specifically the study analyzed the trend in growth rates of selected agricultural financing policies such as the Agricultural Credit Guarantee Scheme Fund (ACGSF), Agricultural Development Programme (ADP), Bank of Agriculture (BOA), and crop output; established whether there is stagnation, acceleration and deceleration on crop production as well as in the funds provided by the selected agricultural financing policies, compared that mean difference in the  value of funds provided for crop production under ACGSF, BOA and ADP; examined the form of causality between the selected agricultural financing policies and crop production and determined the long-run and short-run effects of selected agricultural financing policies on crop production within the reference period. Time series data were used for the study. Data were analyzed using trend analysis, z- test, Granger causality test and Autoregressive Distributive Lag (ARDL) model. The study showed that crop output and financing provided under ACGSF, BOA and ADP increased overtime within the reference period having assumed R2values of 0.880, 0.926, 0.884 and 0.897 with all being significant at (p<0.01) level respectively. The study revealed a compound growth of crop output at 5.3% per annum, 1.8%per annum for Agricultural Credit Guarantee Scheme Fund (ACGSF), 2.3%per annum for Bank of Agriculture (BOA) and 1.2% per annum for Agricultural Development Programme (ADP). The study revealed that growth of crop output and those of selected financing polices were slow. The study revealed that the rate of growth of Crop output, and financing provided under Agricultural Credit Guarantee Scheme Fund (ACGSF) and Agricultural Development Programme (ADP) decelerated within the period under review. Bank of Agriculture disbursed more funds for crop production than ACGSF and ADP during the period under review. The finding showed that the variable of crop output and Agricultural Credit Guarantee Scheme Fund (ACGSF), Bank of Agriculture (BOA) and Agricultural Development Programme (ADP) maintained a unidirectional relationship throughout the period under study. Agricultural Credit Guarantee Scheme Fund, Agricultural Development Program, real exchange rate, food importation and government policy on interest rate boosted and enhanced crop production output. Also, area of land under cultivation, Agricultural Credit Guarantee Scheme Fund, Bank of Agriculture, Agricultural Development Programme, real exchange rate and government policy on interest rate affected crop output positively on the long run. Area of land under cultivation, AGCGSF and BOA significantly influenced crop output in the short run. It is therefore recommended that government should enhance growth in crop output by ensuring timely allocation of funds through the selected financing schemes, institutions and programmes to the agricultural sector. Government should also sustain agricultural financing polices schemes, programmes and institutions so as to continue to increase crop production and guarantee food security in the country.