SAVINGS AND CONSTRAINTS AMONG RURAL FARMING HOUSEHOLDS IN DELTA STATE, NIGERIA: IMPLICATIONS FOR AGRICULTURAL DEVELOPMENT

The main objective of the study was to evaluate the effects of savings on agricultural development. Data were obtained with the aid of structured questionnaires. The data was analysed using descriptive statistics and regression analysis models. Multi-stage sampling methods were adopted in a random selection of 312 respondents. Most respondents were married with a moderate family size of 10 persons with illiterate male-headed households that were mostly aged (46 years). Most respondents had 19 years of farming experience mostly engaging in crop production with a low annual income of N69,798 ($183.68) which is $0.503 per day less than the $1per day poverty line index. Education of children was the main objective of savings but inadequate funds to save was a major constraint. Most respondents experienced low agricultural output which retard agricultural development. Regression analysis results revealed that household size affects savings negatively while annual income, the sum of borrowed money and interest rate affect saving positively. The study recommends that credits should be made available in form of soft loans and respondents should be encouraged to save towards farm investment that will generate income.