Analysis of Agricultural Value Chain Financing Among Smallholder Farmers in Kaduna State

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Access to finance remains a major constraint for smallholder farmers in Nigeria. This study analyzed agricultural value chain financing among smallholder farmers in Kaduna State. Data were collected from 250 farmers, 30 input dealers, 20 aggregators, and 10 financial institutions. Results showed that 42% of farmers accessed some form of value chain financing, with input credit (65%), aggregator financing (28%), and warehouse receipt financing (12%) being common models. Farmers with value chain financing access had 45% higher productivity and 38% higher income. Factors influencing access included group membership, farm size, and relationship with value chain actors. Challenges included high interest rates and collateral requirements. The study recommends strengthening value chain linkages and developing appropriate financial products.