Effect of Anchor Borrowers’ Programme Access among Rice Farmers in Benue State, Nigeria: Application of Endogenous Switching Regression Model

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Effect of Anchor Borrowers’ Programme Access among Rice

Farmers in Benue State, Nigeria: Application of Endogenous Switching Regression Model

ABSTRACT

The effect of Anchor Borrowers’ programme (ABP) access among rice farmers in Benue State, Nigeria was examined. Data for the study were collected with the aid of structured questionnaires from 768 rice farmers consisting of 388 beneficiaries and 380 non-beneficiaries from 18 communities and 18 Local Government Areas using multi-stage sampling technique. The collected data were analysed using independent t-test and Endogenous Switching Regression Model (ESRM). The independent t-test results showed that the income and farm output of beneficiaries of Anchor Borrowers’ Programme were significantly higher compared to the non-beneficiaries. The ESRM revealed that rice farmers’ access to ABP was significantly influenced by their socioeconomic characteristics and that beneficiary and non-beneficiary rice farmers were not better or worse in terms of farm income than a random rice farmer from the samples. Also, the ESRM showed that beneficiary rice farmers acquired lesser productive assets than what a random rice farmer from the sample would have earned while non-beneficiary rice farmers acquired more productive assets than what a random rice farmer from the sample would have earned. The study recommended that Federal government should consolidate on the gains of ABP in the State and extend the credit to more rice farmers.

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