Agricultural Financing and the Effectiveness of Rice Anchor Borrower Programme on Food Security in Kogi State, Nigeria

Abstract

The credit deficit faced by smallholder rice farmers in Kogi State, Nigeria, is a significant barrier to improving productivity, income, and food security. Despite the efforts of programmes like the Rice Anchor Borrowers' Programme (RABP), many smallholder rice farmers still struggle to access adequate and affordable credit. This study therefore examines the role of agricultural
financing, particularly the Rice Anchor Borrowers’ Programme (RABP), in enhancing food security in Kogi State. The study adopts Quantity Theory of Credit as its theoretical framework. The research evaluates the programme's effectiveness in improving rice production, increasing farmers' income, and contributing to food availability, accessibility and affordability. Using a mixed-methods approach, the study analyzes primary and secondary data to assess the programme's impact on smallholder rice farmers in Kogi State and its implications for food security in the state. The RABP, initiated to provide credit facilities, inputs, and technical support to farmers, represents a significant shift towards improving agricultural productivity through accessible financing. The study concludes that agricultural financing through the Rice Anchor Borrowers’ Programme in Kogi state has the capacity to position the state for improved food production that can lead to food availability, accessibility and affordability. However, challenges remain in fully achieving food security objectives. To address these challenges, the study recommends that a targeted outreach strategy should be developed to include more smallholder farmers, particularly women and youth in remote and underserved areas of Kogi State.