Agricultural credit constraints in smallholder farming in developing countries: Evidence from Nigeria
World Development Sustainability(2022)
Abstract
•We examine the nature of credit constraints facing smallholder farm households using survey data and econometric models.•Contrary to policy discourse and literature claim, we found that smallholders face both supply and demand-side credit constraints.•Supply-side policies should focus on enhancing smallholders’ capacity to possess bankable collateral, such as land titles or assets.•Demand-side interventions need to focus on farmers’ risk perception, information access, transaction costs and capacity strengthening.
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Key words
Agricultural technology,Credit constraints,Nigeria,Rural finance,Smallholder farmers
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