DETERMINANT OF SAVINGS AND INVESTMENT BEHAVIOR OF MAIZE FARMERS IN ZARIA AND SABON-GARI LOCAL GOVERNMENT AREAS OF KADUNA STATE, NIGERIA

Abstract

The study analyzed the different determinants of saving and investment behavior of maize farmers in Zaria and Sabon-Gari Local Government Areas of Kaduna State, Nigeria. Multi-stage sampling procedure was used to select 120 maize farmers for the study. Data were collected with the aid of a questionnaire and analyzed using a multiple regression model. The results revealed that age, membership to cooperatives, non-farm income, and handling capacity were found to be statistically significant (P<0.05) and positive in influencing maize farmers’ savings behaviors. Also, age, membership to cooperatives, non-farm income, and handling capacity was found to be the statistically significant (P<0.05) factors that influenced the investment behavior of maize farmers in the study area. Based on the findings of this study, it can be concluded that maize farmers do participate in savings and investment and there is a propensity to save and invest among farmers in the study area despite inadequate income and capital and age, membership in cooperatives, non-farm income, and handling capacity was found to significantly influenced saving and investment. The study, therefore, recommended that the government and other non-governmental organizations should make the extension of micro-credit to farmers through their cooperative society on time as a way of helping them boost production which invariably will give farmers have surplus for savings and investment.