STIMULATING GROWTH AND MINIMIZING RISK IN AGRICULTURAL LENDING UNDER THE AGRICULTURAL CREDIT GUARANTEE SCHEME FUND (ACGSF) IN BAUCHI STATE, NIGERIA

This study examined the impact of ACGSF in stimulating growth and minimizing of risk in Agricultural lending in Bauchi State. Forty three (43) farmers were randomly sampled and data collected through the use of structured questionnaire. Data were analyzed using descriptive statistics, correlation and multiple regression analysis. The results showed that farmers farm size increased considerably (P>0. 001) after taking the loan and the farm in come also increased (P<0. 001) after taking the loan for an average of two seasons. The results also showed that the educational level of the farmers does not affect loan amount directly even though there is strong positive correlation between the level of farmers’ education and their ability to meaningfully utilize the credit facility. It further showed that 37.21% of the respondents were given between were given between N 25,000.00 and N 50,000.00 as loan. The major constraints identified with the scheme include cumbersome procedures in processing the loan insufficient loan amount and late approval of the loan. Based on these findings, it was suggested that the scheme should do more to ease the constraints farmers faced, so as to achieve the objective of the scheme.