Jul 2026· African Journal of Sustainable Agricultural Development· 0 citations
Abstract
Credit access is a critical enabler of livelihood diversification among rural households, particularly in resource-constrained and climate-vulnerable regions like northern Nigeria. This study examined the extent of credit access, major constraints, and their influence on livelihood diversification among 450 smallholder farmers in Kano State, Nigeria. Data were collected through a multistage sampling procedure and analyzed using descriptive statistics, binary logit regression, and the Simpson Diversification Index. Results revealed that respondents were predominantly male (81.1%), married, and middle-aged, with small landholdings and low monthly incomes. Farming remained the dominant livelihood activity, supplemented by livestock, poultry, and petty trading. Formal credit access was limited (31.8%), with most households relying on informal sources such as friends and relatives. The primary constraints to diversification were limited access to credit, high startup costs, and high input prices. Binary logit and other regression analyses confirmed that financial exclusion significantly hinders diversification efforts. The study concludes that financial exclusion remains the main structural barrier to livelihood diversification. It recommends expanded rural credit delivery, reduced borrowing costs, strengthened cooperative financing, and enterprise support programs to enhance household resilience and welfare in Kano State.
Agricultural credit plays a critical role in enhancing farm productivity and sustaining rural livelihoods in developing economies characterized by capital-constrained smallholders. This study examines farmers' credit demand, its structure, and the barriers affecting access to formal financial services. Primary data were collected through a structured questionnaire administered to 240 farmers across ten districts of Nangarhar Province. Descriptive statistics, Likert-scale analysis, and cross-tabulations were used to analyze credit demand and utilization. The results revealed that 90.42% of surveyed farmers expressed a demand for agricultural credit, with 40.0% reporting a very high level of demand, while 62.5% of respondents identified government sources as their preferred source of credit. However, only 11.3% of respondents were aware of formal credit programs. Collateral availability emerged as a significant barrier, as only 38% of households possessed formal land documentation. Farmers primarily demanded small-ticket loans: 79.73% of respondents reported a credit demand of less than AFN 200,000 for seasonal input purchases. In addition, farmers showed a strong preference for installment-based and seasonal repayment schedules. These findings highlight a structural paradox: while farmers recognize the importance of credit for improving agricultural productivity, institutional barriers continue to limit access to formal financial systems. Policy recommendations include expanding financial services, strengthening awareness campaigns, introducing alternative collateral mechanisms, aligning repayment schedules with agricultural cycles, and linking credit provision with extension services. The study provides actionable insights for policymakers and financial institutions seeking to design inclusive and accessible credit schemes tailored to the needs of smallholder farmers in Nangarhar Province.
Naeemullah Rahmani, Hamidullah Younisi, A. Noori et al.· Afghan International Journal...· 0 citations
Rural households in developing countries increasingly combine farm and non-farm livelihood activities to reduce income risk, improve resilience, and enhance household welfare. Access to financial services is an important driver of livelihood diversification because it improves investment capacity, facilitates risk management, and supports income-generating activities. This study examined the effects of financial inclusion and livelihood diversification on farm income among rural households in Osun State, Nigeria.
Primary data were collected from 320 rural households selected through a multistage sampling procedure. An Endogenous Treatment Regression (ETR) model was employed to account for potential selection bias associated with households' participation in livelihood diversification. A Probit model was used to identify factors influencing participation in livelihood diversification, while the outcome equation estimated the effects of livelihood diversification and financial inclusion on farm income.
The Probit estimates revealed that gender, education, farm size, land ownership, access to extension services, support from non-governmental organizations (NGOs), and financial inclusion significantly influenced participation in livelihood diversification. The outcome equation showed that age, gender, education, household size, land ownership, NGO support, and financial inclusion significantly affected farm income. The treatment effect estimates indicated that livelihood diversification had a positive and significant effect on farm income. The Average Treatment Effect (ATE) further confirmed that households engaged in diversified livelihood activities earned higher incomes than non-diversified households.
The findings demonstrate that financial inclusion and livelihood diversification are complementary strategies for improving farm income and strengthening rural resilience. Enhanced access to financial services enables households to invest in productive activities, diversify income sources, and reinvest earnings into agriculture. Therefore, policies aimed at expanding financial inclusion, improving rural credit access, strengthening extension services, enhancing financial literacy, supporting NGO interventions, and promoting rural enterprise development can contribute significantly to sustainable livelihood improvement and poverty reduction among rural households.
A. Kehinde, T. Ojo, A. Tijani et al.· Frontiers in Sustainable Foo...· 0 citations
This study identifies the determinants of livelihood diversification among rice farming households in climate-vulnerable areas of Central Vietnam by applying an integrated perspective drawn from the Sustainable Livelihood Framework, Portfolio Theory, Risk Management Theory, and Household Decision-Making Theory.
A cross-sectional survey was conducted with 278 households randomly selected from a population of 5,194 rice farming households in Thua Thien Hue province. A binary logistic regression model examined how diversification participation is associated with livelihood capital endowments (human, natural, physical, financial, and social) as well as socioeconomic and contextual factors, including vulnerability (climate-change perception and idiosyncratic risks), transformation processes (transportation and urbanisation), and policy/institutional factors (extension services, government support, and credit access).
Diversification is associated with substantial welfare differentials, with income increasing by 54% for simple strategies and up to 371.5% for comprehensive multi-activity approaches. Diversification is more likely among households with higher education, better transportation access, greater mobility, and stronger exposure to urbanisation opportunities, while larger farm size, debt, and climate-change perception are associated with lower diversification likelihood.
Cross-sectional design limits causal inference, though robust theoretical foundation enhances confidence in findings. Geographic scope is limited to Central Vietnam, but careful site selection ensures broader applicability to similar agro-ecological contexts facing climate vulnerability.
The study provides context-specific evidence on diversification determinants in climate-vulnerable rice systems in Central Vietnam and demonstrates the value of integrating multiple theoretical lenses to improve the policy interpretability of diversification participation under risk and constraints.
L. Sen, Nguyen Ngoc Lan Chi, Dung Tien Nguyen· Journal of Agribusiness in D...· 0 citations
Farmland access remains a key constraint for smallholder farmers in Nigeria, with increasing reliance on the land rental market. This study investigates the determinants of farmland market participation among smallholder farmers in Ogun State across different land arrangement types, socio-economic characteristics, and participation outcomes. Primary data from 150 respondents were analyzed using descriptive statistics, multinomial logistic regression, bivariate logit model, and a problem ranking index. Result of the socio-economic analysis revealed that most farmers were above 40 years, with farming as a secondary occupation for many. Participation in the rental market was notable, with 58% renting in land and 41.3% renting out. Multinomial regression results showed that education significantly reduced the likelihood of choosing ownership (p < 0.001), communal (p = 0.056), and sharecropping (p = 0.009). Farm size positively influenced selection of ownership (B = 0.81, p = 0.001) and communal (B = 1.11, p = 0.004) arrangements. Bivariate logit estimates showed land size significantly reduced the likelihood of renting in (B = -0.84, p = 0.012) but increased renting out (B = 1.02, p = 0.018). Household size increased rent-in participation (B = 0.56, p = 0.031), whereas age significantly influenced rent-out decisions (B = 0.44, p = 0.022). The significant correlation coefficient (rho = 0.411, p = 0.008) indicated interdependence between both decisions. The findings reveal a dynamic farmland market shaped by socio-economic pressures and land scarcity. Land tenure arrangements, farmers' cooperatives, and land information services need to be strengthened to improve land access and rural productivity.
Q. Nafiu, W. Ashagidigbi, A. Ijaoba et al.· FUDMA Journal of Agriculture...· 0 citations
Food insecurity remains a structural impediment to rural welfare in sub-Saharan Africa (SSA), with smallholder farming households in northern Nigeria among the most severely affected. This study examined the socioeconomic determinants of food security among farming households in Kano State, Nigeria, with emphasis on the role of institutional credit access, using the Food Consumption Score (FCS) methodology. Data were collected through semi-structured face-to-face interviews using multi-stage cluster sampling and analyzed using descriptive statistics, chi-square analysis, one-way ANOVA, and multiple linear regression. Slightly fewer than half of the sampled households met the food-secure threshold, and food security status was significantly associated with the level of access to institutional credit, with a noticeable gap in food security status between high-access and no-access households. Multiple regression confirmed that access to institutional credit, farming experience, and farm size were significant and positive determinants of food security, while household size was a significant negative determinant. These findings demonstrate that institutional credit is an important, policy-actionable pillar of rural food security in Kano State Nigeria, best pursued alongside corresponding investments in farmer experience-transfer, land access, and household welfare.
Suliman A. Almojel, A. Wudil, Hema Lingireddy et al.· Sustainability· 0 citations
This study examines how rural finance has shaped agribusiness development in India, with emphasis on the transition from informal lending to a diversified institutional credit system. Using secondary data from official reports, surveys, and scholarly sources, the analysis reviews long-term trends in agricultural credit, agency-wise disbursement, regional distribution, and the relative roles of commercial banks, Regional Rural Banks, cooperative institutions, and NABARD. The findings indicate that institutional credit has expanded markedly and has supported investment in farm inputs, technology, irrigation, post-harvest infrastructure, and risk-management mechanisms. Commercial banks have become the principal providers of agricultural credit, while Regional Rural Banks and cooperatives continue to perform important financial inclusion functions. However, the expansion of formal lending remains uneven. Small and marginal farmers face constraints related to collateral, documentation, procedural complexity, and limited local outreach, while the eastern and north-eastern regions receive comparatively lower levels of credit. Continued reliance on informal lenders, insufficient medium- and long-term finance, and uneven loan amounts further limit the contribution of credit to sustainable agribusiness growth. The study identifies digital integration, region-specific policies, stronger cooperative networks, financial education, public-private collaboration, and improved alignment of credit products with agricultural cash-flow cycles as key pathways for strengthening rural finance. A more inclusive, transparent, and farmer-oriented credit system is required to support resilient and sustainable agribusiness development across India.
Vidyawati, R. Jadoun, Saurabh Singh· Journal of basic and applied...· 0 citations