ABSTRACT
This study investigated micro-credit utilization and its impact on farmers' maize output and household food security in Kaduna State. The specific objectives of the study were to describe and compare the socio-economic characteristics of beneficiaries and non-beneficiaries of microcredit; investigate and compare productivity efficiency of the farm enterprises of beneficiaries and non-beneficiaries of microcredits; determine and compare profitability of the farm enterprises of beneficiaries and non-beneficiaries of micro-credits; determine and compare the food security status of beneficiaries and non-beneficiaries of microcredit; examine the impact of microcredit utilization on farmers maize output and household food security; identify and discuss the constraints faced by beneficiaries and non-beneficiaries of microcredit in the study area. Primary data were collected from two categories of farmers; beneficiaries and non-beneficiaries of micro-credit through the use of structured questionnaire. A multi-stage sampling procedure was adopted to collect primary data from four LGAs namely Zango-Kataf, Chikun, Lere and Giwa. The data for analysis was based on 2015 farming season and were analyzed using descriptive statistics, stochastic production frontier, budgetary analysis, cost-of-calorie index, Binary choice models (Logit) and Propensity Score Matching model. The findings revealed that, there was a higher level of technical inefficiency among non-beneficiaries of micro-credit than beneficiaries of micro-credit with the output of non-beneficiaries dropped by 3% from the maximum feasible level of 1.00 due to technical inefficiency. Maize production enterprise is a profitable venture with an average rate of return of N 1.33 and N 0.90 by beneficiaries and non-beneficiaries of micro-credit, respectively. It was found that 104(31%) maize farming households were food secure while 232(69%) were food insecure. Furthermore, 69 percent of the sampled maize farming households fell short of the recommended daily calorie requirement of 2700 vii kcal/persons/day.The logit regression analysis revealed that socio-economic characteristics- sex, age, marital status, household size, education and land size were the significant factors influencing the food security status of maize farming households in the study area.The results from Propensity Score Marching estimator revealed that micro-credit utilization had a positive and statistically significant impact on maize output and food security among maize farming households. Specifically, the Nearest Neighbour marching (NNM) shows that an additional maize output and per capita income of 2,920.47kg (29%) and ₦254, 080.94 (29%) on average was achieved, by maize farming household who used microcredit during the production period under study. Both beneficiaries and non-beneficiaries of micro-credit ranked low output price as foremost constraints faced. The study reveals that majority of the farming households (69%) were found to be food insecure. Further, the Binary Logit Model results reveal that sex, age, marital status, household size, education and land size were the factors influencing the food security status of maize farming households in the study area. Food insecurity coping strategies adopted by the farming households have short term effect. Therefore, there is the need to increase the volume of food production, improve access on income generating activities that are more sustainable as well as provision of input such as weedicides, fertilizer, improves seeds and others to motivate farming households and increase their productivity.
