Do Rural Farmers Save? Evidence from Toro, Bauchi State, Nigeria

Abstract

The study attempted to examine the question whether rural farmers save their income. Rural farmers in Toro Local Government of Bauchi State, Nigeria were used as a case study. The factors that influence saving and investment were also determined. Out of the three districts in the LGA, two villages were purposively selected from each district and twenty farmers were randomly selected to bring the number of villages to six and total number of farmers to one hundred and twenty. This constituted the sample size; they were administered the questionnaires from where data for the study was generated. The data were analyzed using descriptive statistics and multiple regression analysis. The result indicated that contrary to traditional theory of saving where the poor are deemed incapable of saving, the rural farmers do indeed save from their little income. They need to be encouraged in this regard. The regression result showed that age, educational level, farm income, membership of cooperative societies, farming experience and access to credit were significant factors that influence saving. The result also revealed that inadequate income and too many children to carter for were major constraints to saving. To promote saving culture in the area, the capacity of the farmers to save should be enhanced by enabling them adopt birth control, providing them opportunities to work all year round and provision of simple preservation technologies.