Keywords
Anchor Borrower,
Determinants
Maize Farmers
Profitability
Technical Efficiency
How to Cite
Abstract
The study assessed the impact of anchor borrowers program on crop production in Gombe State,
Nigeria. A total of 150 beneficiary farmers were sampled across the State and questionnaire were
administered via scheduled interview using multi-stage, cluster, purposive and simple random
sampling methods. The data collected were analyzed using stochastic frontier production function
and gross margin analysis. The result on the socioeconomic characteristics revealed that most of
the respondents were male (80.67%), married (79.33%) and experienced maize farmers (76.00%).
The respondents were technically efficient with a mean level of 72.00% and sum of the elasticity
estimates was found to be 2.1625 indicating increasing return to scale, the inefficiency parameters
conformed to the a priori expectation having carried the expected negative signs. Sigma squared
(σ2) was statistically significant at p <0.001. Gamma (γ) was found to be 0.89 and was significant
at p <0.001. The study further revealed that maize farming in the area was profitable with a gross
margin of ₦87,010.34/ha. The total revenue recorded was ₦267,543.12/ha, while the total
variable costs was ₦180,532.78/ha over a total land area of 981.3ha. Profitability index was 0.33
and return on investment was 0.48. There was a moderate availability and accessibility to credit
and inputs. Major constraints encountered include; untimely access to loan, bad road network,
high cost of fertilizer and labor. It can therefore, be deduced that the program had triggered more
farmers into production, even though their technical efficiency was below optimum likely owing
to constraints associated with; access to credit and input, and also poor access to extension
services. It was recommended that an effective extension service be put in place. Inputs and credit
should be disbursed timely and monitoring mechanism should also be improved so as to reduce
the tendencies of misappropriating resources meant for maize production to other personal needs.
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