FACTORS INFLUENCING SAVINGS AND INVESTMENT AMONG SMALLSCALE FARMERS IN BAUCHI LOCAL GOVERNMENT AREA, BAUCHI STATE, NIGERIA

Authors

  • Maigari, Z. B.
  • Sani, R. M.
  • Yakubu, S.
  • Musa, A. U.

Keywords:

Savings, Investment, small-scale and farmers

Abstract

The study examined the factors influencing savings and investments among small scale farmers in Bauchi State, Nigeria. A multi-stage sampling technique was used in selecting 320 respondents. Data were collected using structured questionnaire and were analyzed using descriptive and inferential statistics. The result revealed that 38.13% of the respondents were within the age bracket of 28-37 with mean age of 35 years. Majority (53.8%) of the respondents were male. The result also revealed that majority (69.7%) and (55.9%) of the respondents were married having secondary education respectively. The major occupation of the respondents was farming (61.6%). The result also revealed that majority (65.0%) of the respondents’ sourced capital from their personal savings. The result further depicts that half (50.0%) of the respondents had household size of 1-6 with mean household size of 7 persons. Most (94.38%) of the respondents had farm size between 1-2 hectares with mean farm size of 2.5 hectares. Most (94.06%) of the respondents had been in farming for about 1-10 years with a mean year of experience of 4 years. Majority (70.3%) of the respondents were members of one cooperative or the other. The result of factors influencing savings of the respondents revealed that, the coefficients of income from off-farm, farm size and farming experience were positive and statistically significant (P≤ 0.001). On the other hand, the result of factors influencing investment of the respondents revealed that, age and off-farm income were the factors that are statistically significant (P≤ 0.001) and (P≤ 0.05) respectively influencing investments of the respondents in the study area. The major constraints to savings and investments in the study area were lack of sufficient returns (40.0%), risk of capital loss (35.0%) and seasonality of agricultural operations. The study concluded that income from off-farm, farm size, and farming experience, age and off-farm income were the factors influencing savings and investments at 1% and 5% level of significance. The study recommended that, incentives such as improved technology, appropriate farm support services and medium and long-term loans should be provided to farmers to boost their income level.

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Published

2023-12-26

How to Cite

Maigari, Z. B., Sani, R. M., Yakubu, S., & Musa, A. U. (2023). FACTORS INFLUENCING SAVINGS AND INVESTMENT AMONG SMALLSCALE FARMERS IN BAUCHI LOCAL GOVERNMENT AREA, BAUCHI STATE, NIGERIA. Nigerian Journal of Agriculture and Agricultural Technology, 3(2), 187–200. Retrieved from https://njaat.atbu.edu.ng/index.php/njaat/article/view/552

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