ABSTRACT
The study evaluated the effect of micro credit on poverty alleviation among rural crop farmers in Edo State, using the problem of inadequate capital for the development of the agricultural sector as the main frame of reference. The specific objective of the study was to identify the social and economic contexts which influence the behaviour of respondents in the use of resources that determine the strata of the community the individuals would be, identify the various sources of micro credit schemes and their beneficiaries, determine the effect of micro credit on farm size, output, expenditure and income of beneficiaries and compare them with those of non beneficiaries, and evaluate the poverty status of beneficiaries and non beneficiaries of the micro credit scheme. Primary and secondary data were used for this study. Secondary data were sourced from organizations such as Lift Above Poverty, Edo State Micro Credit Scheme, Federal Office of Statistics, World Bank and the Internet while primary data were obtained by the use of copies of pre-tested questionnaire administered beneficiaries and non beneficiaries of the micro credit scheme. A multistage sampling procedure was used to select twelve (12) blocks, twenty-four (24) cells and eight hundred (800) respondents. Primary data were obtained from interview schedules administered by enumerators of the Edo State Agricultural Development Programme and Lift Above Poverty (LAPO). Three hundred (300) copies of well completed questionnaire each for beneficiaries and non beneficiaries were analysed using frequency counts, means, percentages, multiple regression, and test of differences in mean and poverty indices.
Our findings were that, one hundred and thirty five (135) and one hundred and thirty three (133) of the beneficiary and non beneficiary respondents respectively were female while one hundred and sixty five (165) and one hundred and sixty seven (167) of the beneficiary and non beneficiary respondents respectively were male. Ninety six percent (96%) and eighty six percent (86%) of the beneficiaries and non-beneficiaries respectively were in the active age bracket of between 20 and 60 years, sixty one percent (61%) and sixty percent (60%) of beneficiaries and non-beneficiaries respectively were educated. The mean farm size was found to be 1.73 hectares for beneficiaries and 1.81 hectares for non-beneficiaries. Eighty two percent (82%) beneficiaries and eighty three percent (83%) non-beneficiaries were full time farmers and the output of beneficiaries in maize; cassava and yam were higher than that of non-beneficiaries.
Result of the regression analysis revealed that output and credit had a positive relationship with productivity and income of beneficiaries and non-beneficiaries of the micro credit scheme. The study also revealed that the incidence, intensity and severity of poverty were higher with non-beneficiaries than with beneficiaries of the scheme. It can therefore be concluded that for farmers to be able to alleviate their poverty situations, there is the need for the injection of outside sources of finance in the form of micro credit.
