The study examined the effects of credit utilization on the output of the youth rice farmers in
Nigeria. It also examined the sources of information on credit available to the farmers; the use
of the credit and the problems encountered by the farmers in having access to credit. Primary
data was used for the study. Descriptive statistics was used to analyze the data collected for the
study. Results of the findings showed that “past experience" is the major source of information
on credit used by the farmers, though the farmers prefer cooperative societies to every other
source of credit information. Banks, cooperative societies and Esusu/saving groups are the
major sources of credit to the farmers. The mean amount of credit obtained by the farmers is
N132, 301. The most of the farmers spent their credits on fertilizers, seeds and farmland
expansion. The major problems faced by the farmers in accessing credit are: insufficient amount,
lack of collateral and high interest rates. However, the general effect of credit utilization by the
farmers is increased output. It is therefore recommended that banks are situated in the study
area and they should disburse sufficient loans to the farmers at affordable interest rates. The
farmers should also form cooperative and savings groups in order to enjoy economies of scale in
accessing credit facilities.