Effects of agricultural credit on rural farmers size of holdings, income and savings in Katsina State, Nigeria

This study analyzed the effects of agricultural credit on farmers size of holding, income and saving in some selected local government areas (LGAs) in Katsina State. The primary data were collected between June and December 2022 from 100 respondents randomly selected from four purposively selected LGAs. The data generated were presented using descriptive statistics and also subjected to inferential statistical tests such as t-test and analysis of variance (ANOVA). The average income of respondents before benefiting from the credit was ₦51,824.00 which was less than their average income of ₦155,945.00 after benefiting from the credit. The study revealed that the average savings of the respondents increased from ₦16,000 to ₦86,000 after benefiting from the credit. The independent t-test yielded a value of 8.82 with correspondent critical value of 1.960 and 2.576 at 5% and 1%, respectively. The results from two-way ANOVA showed that the new incomes level after accessing the credit across the LGAs had an F-value of 7.73 with P-value of 0.001. The study also showed significant (p ≤ 0.05) differences in the income across the villages with F-value of 2.60. The provision of agricultural credit to the rural poor should also have mechanisms through which to disseminate valuable information on ways to improve the health, legal rights, sanitation and other relevant concerns of the poor.