Do Peasant Farmers Save and Invest? Evidence from Cassava Farmers in Benue State, Nigeria

The study assessed determinants of amount saved and invested by cassava farmers in Benue State, Nigeria using multi-stage random sampling. Data collected from primary source were analysed using descriptive statistics and multiple regressions. Results showed that 35.0% of the respondents were 48 years and above with mean age of 43.2 years, highly educated, 76.67% of them had one form of education or the other, predominantly married (73.33%) and mostly males (55.83%). Most (68.33%) of the respondents have farming as the major source of income, mean farming experience was 7.25 years and mean household size was 5 persons with average annual farming income of N398,775.00. Mostly small scale farmers, mean farm size 2.33 hectares and 93.33% do not have contact with extension agent. Multiple regression analysis results reveal the adjusted coefficient of multiple determination (R-2) value to be 0.71 with F-value of 51.53 for factors that influenced the amount saved. The variables marital status, education and income have positive coefficients and were significant at 5%, 1% and 1% respectively as important variables that affect the amount saved. The amount invested by cassava farmers were influenced by variables age, farm size and education with positive coefficients and significant at 10%, 10% and 1% respectively while interest rate with negative coefficient was significant at 5% level with R-2 value of 0.65. The study therefore, concludes that cassava farmers do participate in savings and investment irrespective of their low income and earnings and have a high potential for contribution to overall growth of national domestic savings and investment in Nigeria. The study recommend government enhanced accessibility to extension services as it is critical in improving cassava production, savings and investment among cassava farmers, farmers should form cooperative societies to enhance their chances of getting credit and stimulate their interest to save and invest.