CHAPTER ONE
INTRODUCTION
1.1     BACKGROUND TO THE STUDY
          Farmer need productive resources and these resources are acquired with owned or borrowed fund. Agriculture is very important to the economic of most developing countries of the world and because of this, a supply of adequate farmer finance is essential for natural well bring.
          Since agriculture is the backbone of the Nigeria economy providing employment to about 70% of its population yet this important sector has suffered healect since the oil boom days. Agriculture has totally declined since the early 1970s Nigeria export crops such as groundnut, palm oil and external have evaluate disappeared and the country is a net importer of food crops. Agriculture recorded growth rate in 1975 at about 2.6% while the population grew at about 70% compared to 57-7% in 1993 economic growth summit (1995) the small scale farmers according to the national agricultural policy document for Nigeria (N.A.P.O.N) constitute over 90% of the food and fiber requirement of Nigeria on the other hand large scale farmers produce has than 1% of farm output in Nigeria but they tend to have greater access to farmer inputs including farm credit or loan.
1.2     STATEMENT OF THE PROBLEM
          This study is to investigate the analysis of the problem associated with obtaining credit for financing agricultural production in Edo state. It would be seen that many problems arise the most for mixable problem encounter by the farmers in the area.
1.    The inability of the farmers to meet the collateral security acquired by the commercial bank is a major problem hindering agricultural sectors. This is as a result where farmers have nothing to deposit in the process of obtaining credit for agriculture.
2.    High interest rate is another factor that discourage farmers from obtaining credit in most commercial banks, payment of interest involve when fund is borrowed.
3.    The low educational         background of the farmers also constitutes hindrance in obtaining agricultural credit.
4.    Credit facilities are not easily accessible to small scale farmers.
5.    The bureaveratie native involved in the process of obtaining credit ot loans for agricultural purpose have not being encourage on the part of the farmers. It is on the note that the researcher intends to identify some of the hindering factors in order to proffer solution.