Authors : R.O. Babatund , S.B. Fakayode , E.O. Olorunsanya and R.A. Gentry
Abstract: Nigerian farmers are faced with numerous problems that hinder them from attaining their full potential in food production. They operate small and fragmented farm land using crude implements and methods of production. They have to contend with high input price, low mechanization, high transportation cost, infertile land, pest and diseases, inadequate fund, unstable policies and general poverty. Determined to help themselves, the farmers have resulted to formation of farmers` cooperative societies. One of the economic obligations of members of the society is saving. The savings are given as loan to needy members who are expected to pay back within specified period of time. This study examined the determinant of saving among cooperative farmers in Ondo state, south-western Nigeria. One-hundred and fifty cooperative farmers were selected from fifteen cooperative societies across 2 local government areas of the state in 2004. Data were collected using structured questionnaires. Data were analyzed using descriptive statistics and multiple regression technique. Results showed that cooperative farmers in the area are of average age of 48.6 years and have an average of 5 persons in the household. The average farm size was 1.04 ha and about 80% have less than 3 ha of farm land. The average monthly income was N11,684 while the average monthly saving was N736.2. The average loan collected was N9,420 and 82.8% of the cooperative farmers received loan during the last one year. Household size, year of cooperative membership, interest rate on loan, gender and amount of money borrowed were significant variables that determined the amount of saving by cooperative farmers. The saving level of the cooperative farmers can be increased if loans are adequately made available and proper monitoring of funds for specific production purposes are put in place. A flexible loan repayment policy would also encourage farmers to save more.
R.O. Babatund , S.B. Fakayode , E.O. Olorunsanya and R.A. Gentry , 2007. Socio-Economics and Saving Patterns of Cooperative Farmers in South-Western Nigeria . The Social Sciences, 2: 287-292.