Financial Intermediation and Agricultural Output among Cooperative Farmers Anambra State, Nigeria

This study investigates the influence of financial intermediation on agricultural output among cooperative farmers in Anambra State, Nigeria. The study modelled the influence of access to credit, availability of loans, banking activities, financial literacy, presence of financial institutions, and use of financial products on farm income serving as a proxy for agricultural output. The research employed a descriptive survey design, utilizing simple percentage, mean, and standard deviation to analyze the demographic and the variable data. Inferential analysis was conducted using the Ordinary Least Squares (OLS) regression technique on a sample of 327 respondents selected through the use of Taro Yamani formula and stratified random sampling. The regression results reveal significant positive relationships between all independent variables and farm income. Specifically, access to credit (β = 0.235, p < 0.01), availability of loans (β = 0.182, p < 0.05), banking activities (β = 0.168, p < 0.05), financial literacy (β = 0.210, p < 0.01), presence of financial institutions (β = 0.195, p < 0.01), and use of financial products (β = 0.160, p < 0.05) significantly influence agricultural income. The findings suggest that increased financial intermediation enhances farmers’ capacity to invest in productivity-improving inputs, thereby boosting farm income. Based on these findings, it is recommended that financial institutions should expand their outreach and financial literacy programs to cooperative farmers. Policymakers should also facilitate easier access to credit and diversify financial products tailored to farmers’ needs. Strengthening financial infrastructure and promoting financial inclusion will likely improve agricultural productivity and overall rural development in Anambra State.