EFFECT OF MICRO CREDIT ON THE POVERTY STATUS OF WOMEN CASSAVA FARMERS IN ONDO STATE, NIGERIA.

Abstract

This study examined the effect of micro credit on the poverty status of women cassava in Ondo State. The study specifically examined the socio-economic characteristics of the respondents, cost and return of women cassava farmers, poverty status of women cassava farmers, determinants of poverty status among women cassava farmers and the constraints faced by women cassava farmers in the study area. Multistage sampling procedure was employed to select a sample of 100 respondents. Primary data were collected through the administration of a structured questionnaire and were analysed using descriptive statistics, budgetary analysis, The Foster Greer and Thorbecke (FGT) poverty index and Logit regression model. The findings revealed that the respondents had a mean age of 49 and 47 years respectively. Most of the women (80% and 76.63%) were married and had formal education. All credit users (100%) and 16% of non-credit users belong, and take part in, social group activities. The result of the budgetary analysis revealed that the gross margin of women cassava farmers was N282,856.6 and N181,210.1 respectively and a profit of N260,758.6 and N164,948.0 per ton of cassava sold. The monthly poverty line in the study area was N642.9 and N531.2 for credit and non-credit users. The poverty incidence indicates that about 54% and 68% of the sampled women cassava farmers were poor. The poverty depth revealed that the poor households require about 21% and 40% respectively of the poverty line to attain the poverty line in their per capita expenditure and the poverty severity for credit and non-credit users revealed the per capita expenditure for each of the poor cassava farmers must increase by 36% and 66% respectively to move out of poverty. Also, the result of the logit regression showed that the household size, and level of education were the most significant socioeconomic characteristics influencing the poverty status of the women cassava farmers at 1% while off farm income, farming experience, farm size, credit use was significant at 5% for credit users and non-credit users. The result further showed that the level of education, farm size, household size, credit use and off-farm income with the elastic coefficient greater than one were the only variable that reduced poverty intensity for the women cassava farmers. The result also revealed the most operating constraints faced by the respondents in the study area includes: Inadequate capita, lack of Government support for women cassava farmers, high cost of labour, and high cost of agrochemicals. In order to improve access to micro credit, this study therefore, recommends that; Women Cassava farmers should be encouraged to join Cassava Growers Association Cooperatives so that they can enjoy the benefits of group dynamics in cooperatives for example making credit schemes appropriately positioned to meet the needs of women farmers. Improved access to credit facilities by the women farmers would improve cassava production, increase income and overall well-being of the farmers and promote economic development in Ondo State.