Impact of Agricultural Financing on The Agricultural Output in Nigeria

This study examined the effect of agriculturalfinancing on agricultural output in Nigeria.This study is necessitated by the fact that agricultural practices have not been given full attention they deserve in Nigeria knowing truly that the country by nature is gifted in agriculture and its neglect is our bane in terms of food production and revenue yield. The research relied on secondary data that was used, which concentrated on banks credit and Government funding of the agricultural sector within the time frame of 1980 to 2015.In this analysis,annualtime series,unit root test,co-integration,CBN statistical bulletin, ordinary least square (OLS)and Augmented Dicker-Fuller(ADF) where part of tests used. Based on the results obtained, the estimated results showed that there was a positive and significant relationship between agricultural credit guarantee scheme fund and agricultural output in Nigeria.This means that an increase in agricultural credit guarantee scheme fund could lead to an increase in agricultural output in Nigeria.Again,there was a positive and significant relationship between government expenditure on agriculture and agricultural output in Nigeria. This is because an increase in the rate of interest charged farmers for funds borrowed discouraged many farmers from borrowing and thus less agricultural investment. At this end, there was the need for the government to continue to guarantee loans lent to farmers as this would encourage the banks to lend more to farmer