Accepted 29th December, 2019.
This study examined the determinants of informal savings for small-scale sugarcane production in Onyadama community in Obubra Local Government Area of Cross River State, Nigeria. It involved the random selection of 102 sugarcane farmers in the community. Both primary and secondary data were used for the study. Descriptive and inferential statistics were also used to analyze the data collected. The results of the descriptive analysis reported that majority of the farmers were males having age group between 41-50 years and married. About 52% had secondary education with household size between 6-10 people. Nearness to savings institutions was the major instrument used to mobilize savings, while 32.35% of the respondents saved because of the need to carry out future projects. The major savings institutions were Osusu collectors and rotation savings. The multiple regression results showed that age, distance to savings institutions and income of farmers were the variables influencing the savings capacity of farmers having adjusted variability R-square of 87.4%. The major problems affecting savings among farmers are large family size, illiteracy, high cost of farm inputs, seasonality of sugarcane production, greedy nature of informal institutions and low prices of sugarcane. It is recommended that farmers should form cooperatives societies and be enlightened on the need to have more cash savings. Savings mobilization organizations should adopt demand-oriented approach in designing savings programmes for the sugarcane farmers.
Keywords: Determinants, informal, savings, sugarcane. small-scale