ABSTRACT

The major objective of this study was to measure the impact of micro-  credit on poverty level of farmers among farmers in Abia State. Two local Government areas were selected from each of the three agricultural zones. One commuhity was selected from each of the Local Government Areas. A random sample of fifty-five farmers made up of thirty micro-credit beneficiaries and twenty five non- micro-credit beneficiaries were selected and semi-structured interviews were conducted with these farmers. The data sought included information relating to micro-credit procurements, costs and utilization, socio-economic background of the farmers, sources of fund for farming, farming records, loan repayment and the impact of the loan on beneficiaries. The data collected were analyzed with descriptive statistics, poverty line model (measured in terms of income), the F.G.T measure of poverty and multiple regression models. Data analysis showed the poverty line to be N175, 527.72. Volume of credit, household size, annual farm income, non farm income, and farm size showed to be the significant factors that determine the impact of credit on poverty level of•fariers. Outstanding debt as a ratio of household income, loan interest, variable cost-farm income ratio, farm size and value of assets and monetary savings showed to be significant factors that determine the volume of micro-credit to farmers. Short repayment period, credit ceiling, lack of collaterals, loan diversion, death ui farmers, irrational relocation of beneficiaries and inadequate mobility constituted set backs on the impact of credit on poverty level of farmers in Abia State. Appropriate suggestions were made to strengthen the impact of micro-credit on poverty level of farmers.