EVALUATING THE PROSPECTS OF THE ANCHOR BORROWERS’ PROGRAMME FOR SMALL SCALE FARMERS IN NIGERIA By Dr. Grace O. Evbuomwan, and Dr. Lawrence U. Okoye Department of Banking and Finance, Covenant University, Ota, Ogun State, Nigeria. Abstract The quest to tackle the problems bedevilling the agricultural sector and help Nigeria get out of the current recession occasioned by over dependence on oil revenue, necessitated the launch of the Anchor Borrowers’ Programme (ABP) in 2015. It involves the provision of farm inputs in kind and cash (for farm labour) to smallholder farmers (SHF) to boost production of the targeted commodities. At harvest, the SHF supply his/her produce to the (referred to as the Anchor) who pays the cash equivalent to the farmer’s account. The ABP concept is like the contract farmer concept which has been found to be effective in other countries like India. The success of the pilot project which was carried out in Kebbi State for rice has been very remarkable. About 78,000 rural farmers in Kebbi State benefitted from the programme, which used integrated rice millers as buyers to ensure that there was a ready market for the produce. Yields as high as 7.5 to 8.0 tonnes per hectare were obtained by farmers compared with less than 2.0 tonnes per hectare previously obtained and smallholder farmers were made Naira millionaires in Kebbi State in 2016. KEYWORDS: Anchor, Borrower, Scale Farmer. *Paper presented at the 21st International Farm Management Conference held from 2nd to 7th July, 2017 in Edinburgh, Scotland, United Kingdom.
EVALUATING THE PROSPECTS OF THE ANCHOR BORROWERS’ PROGRAMME FOR SMALL SCALE FARMERS IN NIGERIA By Dr. Grace O. Evbuomwan, and Dr. Lawrence U. Okoye Department of Banking and Finance, Covenant University, Ota, Ogun State, Nigeria. Abstract The quest to tackle the problems bedevilling the agricultural sector and help Nigeria get out of the current recession occasioned by over dependence on oil revenue, necessitated the launch of the Anchor Borrowers’ Programme (ABP) in 2015. It involves the provision of farm inputs in kind and cash (for farm labour) to smallholder farmers (SHF) to boost production of the targeted commodities. At harvest, the SHF supply his/her produce to the (referred to as the Anchor) who pays the cash equivalent to the farmer’s account. The ABP concept is like the contract farmer concept which has been found to be effective in other countries like India. The success of the pilot project which was carried out in Kebbi State for rice has been very remarkable. About 78,000 rural farmers in Kebbi State benefitted from the programme, which used integrated rice millers as buyers to ensure that there was a ready market for the produce. Yields as high as 7.5 to 8.0 tonnes per hectare were obtained by farmers compared with less than 2.0 tonnes per hectare previously obtained and smallholder farmers were made Naira millionaires in Kebbi State in 2016. KEYWORDS: Anchor, Borrower, Scale Farmer. *Paper presented at the 21st International Farm Management Conference held from 2nd to 7th July, 2017 in Edinburgh, Scotland, United Kingdom.
IFMA21ConferencePaper.docx