This study analyzed the loan demand requirements of rural staple and poultry farmers in
Owerri Agricultural Zone of Imo State, Nigeria. Also, the factors affecting loan size were
analyzed. In carrying out this cross-sectional study, data were collected with stratified
sampling technique, using structured and pre-tested questionnaires from 100 loan
beneficiaries and five financial institutions in the zone. The study lasted for a period of six
months, effective April, 2010. Expect value method was used to determine their optimum
loan requirement while OLS multiple regression analysis technique was employed in
determining factors affecting loan size of beneficiaries. Results showed that the potent
factors affecting loan size were farm size, level of education, enterprise type, farmers
experience and dependency ratio. The result further indicated that the respondents were
highly limited by capital as the financial institutions met only 60% of their capital needs. The
optimum loan requirement determined for the farmers were N292, 315, and N435, 753 for
Cassava and Yam farmers respectively, for farm size of 0.80 hectare. For poultry farmers of
about 120 birds, the optimum loan requirement estimated was N492, 500. These figures
would serve as reference points for financial institutions in loan administration of farmers of
similar status and area. The financial institutions were admonished to consider providing
start-up capital for the youths and fresh graduates, who apparently are yet to make in-road
into farming as a business. On the other hand, government was urged to provide fiscal and
monetary incentives to financial institutions supporting agriculture in view of the delicate
nature of farm business.