AN ANALYSIS OF SAVINGS AND INVESTMENT BEHAVIOUR OF FARMERS IN GIWA AND SABON-GARI LOCAL GOVERNMENT AREAS OF KADUNA STATE
AN ANALYSIS OF SAVINGS AND INVESTMENT BEHAVIOUR OF FARMERS IN GIWA AND SABON-GARI LOCAL GOVERNMENT AREAS OF KADUNA STATE
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Date
2006-09
Authors
OSAKA, JOSEPH IKECHUKWU
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Abstract
The need to have adequate record about savings and investment necessitated this
study. The research was carried out in Giwa and Sabon Gari Local Government
Areas of Kaduna State. The specific objectives of the study were to describe the
socio-economic characteristics of the farmers; examine their savings profiles;
identify the factors determining their rate of savings; determine their level of
investment in both farm and off-farm activities, and examine the determinants of
their investment behaviour. Information was obtained from a total of 160 farmers
that were randomly selected, with 80 farmers each from the two local government
areas. The analytical tools employed were descriptive statistics, multiple
regression and correlation analysis. The study showed that the mean income,
savings and investment per farmer were N204,118, N47,351 and N65,457
respectively. The regression coefficients showed that farm income, off-farm
income, and family size were responsible for about 61 percent variations observed
in the level of savings. Also, farm income, off-farm income and loan obtained
were responsible for about 71 percent variations in the level of investment of the
farmers. The correlation analysis revealed that farm income, off-farm income,
age, education, household size, farm size and farming experience were
statistically significant at 1% level of probability in their relationship with
savings. For investment, the result revealed that farm size, loan, farm income,
off-farm income, age and farming experience were statistically significant at 1%
level of probability in their relationship with investment. The conclusion drawn
was that saving potential exists in the two local government areas. Some of the
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factors that exert significant positive influence on the level of savings and total
investment include income, family size, loan and farm size, significant at 1% and
5% level of probability. Farm investments made were mostly recurrent
investment, these include purchase of fertilizer, seeds, chemicals, hoes, cutlasses
and hired labour with very little capital investment. The study recommended that
price support for farmers and granting of soft loans will encourage farmers to
make capital investments. There is the need for mass education and enlightenment
campaign for mobilizing savings and intimating the farmers on investment
opportunities.
Description
A THESIS SUBMITTED TO THE POSTGRADUATE SCHOOL OF
AHMADU BELLO UNIVERSITY, ZARIA, IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
THE DEGREE OF MASTER OF SCIENCE IN AGRICULTURAL
ECONOMICS.
DEPARTMENT OF AGRICULTURAL ECONOMICS AND
RURAL SOCIOLOGY, FACULTY OF AGRICULTURE,
AHMADU BELLO UNIVERSITY, ZARIA
NIGERIA
SEPTEMBER, 2006
Keywords
ANALYSIS,, SAVINGS,, INVESTMENT,, BEHAVIOUR,, FARMERS,, GIWA AND SABON-GARI,, LOCAL GOVERNMENT,, AREAS,, KADUNA STATE