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CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

In recent times, considerable interest has been shown by agricultural including economist, policy makers and financial institution on the need to direct attenuation to the farmer in Nigeria. This deserved attention; stem from the conviction that in the short fun, Nigeria can rely on farmers to supply the bulk of food and other agricultural produces required feed booth our teaming population and the need of the agro-base industrial sectors. One of the option is for the government to encourage the farmers to improve on the quality and quality of their food production thought the supply of credit. It is the light of the above objective that the federal government of Nigeria feet that there was a compelling need to establish a national credit institution e.g. Nigeria agricultural and cooperative bank limited (NACB)

This co-operative bank was established as a national agricultural credit institution. Co-operative societies deliver credit to the agricultural sector of the Nigeria economy having to the following specific objective as its central focus.

i.             Promotion of agricultural production  and rural development.

ii.            Assisting in the improvement of the income and quality of life of Nigeria rural population.

iii.           Contributing to the overall growth and development of the Nigeria economy.

iv.          Increasing the nations output of food and cash crops to meet the needs of a rapidly increasing population.

OBJECTIVE OF THE STUDY

Some of the objective of the study can be stated as follows.

i.             The extent to which the uses of the credit has help in improving the production and income of farmers.

ii.            To identify problems associated with co-operative societies.

iii.           To identify problems associated with the credit delivery system.

iv.          And suggest ways of eliminating such problems.

STATEMENT OF PROBLEM

The study is intended to equip the students with the knowledge and expertise in agricultural therefore this study is very relevant to the students educational career and this study will enable the student to make useful contribution in agricultural development in the country. It is also hoped that this study will be of great use to both farmers and prospective farmer’s co-operative societies and government alike. The farmers will be kept abreast of the happening in the field of agricultural and then re-appraise their operational plans of particular significance, also it is if the benefits enjoyed by farmer in Nigeria that adopted or received the credit facilities extended to then by the societies co-operative which among others improved if production and income. The study will also be beneficial to the government because it will enable them to map out strategies for development and growth of agricultural sector by encouraging and providing funds and input to these farmers who account for up to 90% of total agricultural output. This study will also help co-operative societies to adopt certain measure for better parturient relationship. Finally, it is hoped that the study will be useful to students or researchers who may wish to undertake similar studies.

SCOPE OF THE STUDY

The study will emphasis the importance of co-operative societies in financing farmers in rural setting of Edo state.

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