Impact of Agricultural Financing on Aggregate Farming Output in Kogi State, Nigeria

Abstract

Federating states in Nigeria has over the year claimed to have enjoyed various agricultural financing policies aimed at enhancing sustainable agricultural development. Thus, the paper investigates the impact of agricultural financing on aggregate farming output in Kogi State, from 1992 to 2022 with specific objectives as: to evaluate the impact of Agricultural credit guarantee scheme funds (ACGSF) on agricultural output in Kogi state, assess the impact of commercial banks' credit to agriculture on agricultural output in Kogi State, examine the causal relationship between government expenditure on agriculture and farming output in Kogi State. The paper adopts co-intergration and ECM econometric techniques for the analysis. The results indicated that relationships exist among the variables and the variables were statistically significant in determining the behavior of the dependent variable. The study therefore concluded that agricultural financing has impact on agricultural output in Kogi State. The study recommends that Credit should be timely granted to farmers who are ready and willing to embark on farming and thoroughly supervised; Government should increase her expenditure on the sector; Government should encourage the financial institutions to allocate certain proportion of their total credit facility available for the sector.