ABSTRACT
The study analyzed savings and investment behaviour of small-scale farmers in Kauru and Lere local government areas of Kaduna State. The specific objectives of the study were to describe the socio-economic characteristics of the respondents; determine the socio-economic factors that influence savings and investment in the study area; estimate the savings and investment behaviour of small-scale farmers in study area; evaluate the level of savings and investment made by the small-scale farmer in both farm and off-farm activities in the study area; and describe the constraints associated with savings and investment in the study area. The two local government areas were purposively selected while the respondents were randomly selected. Information was obtained from a total of 168 farmers. The data for analysis were collected through the use of structured questionnaires and were analyzed using descriptive statistics and multiple regression model. Results of data analysis revealed that the mean age of the farmer was 42 years. The average savings from farm and off-farm activities were ₦ 693,560.5 and ₦ 1,064000, while, average investments from farm and off-farm income were ₦ 258,054.1 and ₦ 369,352.4. The results of the regression analysis revealed that age, household size, education, farm and off-farm income were responsible for 55% variation observed in the level of savings, while household size, farm size, farm income, off-farm income and loan obtained were responsible for 55% variations observed in the level of investment. Many (26% and 25%) of the farmers ranked low income and inadequate capital as the foremost constraints associated with savings and investment in the study area. It was therefore, recommended that small scale farmers should be encouraged to form cooperative societies to enable them access credit from banks as this will encourage the accumulation of social capital in form of savings and could link -up the farmers with sources of quality input for bulk purchase. This will enable the groups to buy inputs at factory cost thereby helping to reduce cost of production.
