Sanusi W.A , Adedeji I.A.
Abstract
The study analyzed the determinant of small scale farmers, access to formal credit in Ogbomoso zone, Oyo-State.
Access to credit is very important since financial constraints were one of the most important problems of small-scale
farmers limiting adoption of new farming technologies. Formal credit is the most reliable source of credit in terms
of availability in optimal size and disbursement organization. 150 small scale farmers were purposively select for
the study; Data used was collected from the farmers using interviewed schedule method. The data was analyzed with
Probit model using SAMAZ software. The result of the study revealed that level of education, membership of cooperative,
contact with extension agent and present of collateral security positively and significantly determine the likelihood
of farmers access to formal credit, while farming experience negatively determine the probabilities of farmers having
access of formal credit. The result was consistent with a prior expectation in terms of direction of relationship and
economy theories. The study therefore recommended that, the direction of influence of these determinants should serve
as a guide, in efficient disbursement of formal credit in the future.
Key words:
probit analysis, accessibly, formal credit