Impact of Financial Literacy on Farmers’ Productivity, Livelihood, and Food Security in Agatu Local Government Area of Benue State, Nigeria

Abstract

Agriculture remains the backbone of rural livelihoods in Nigeria, especially in agrarian communities such as Agatu Local Government Area of Benue State. Despite the strategic importance of agriculture to employment generation, food supply, and poverty reduction, many farmers continue to experience low productivity, weak financial management, and persistent food insecurity. Financial literacy has emerged as a critical factor influencing farmers’ ability to make informed economic decisions, access financial services, manage risks, and invest in productive agricultural activities. This study examined the impact of financial literacy on farmers’ productivity, livelihood, and food security in Agatu Local Government Area of Benue State, Nigeria. The study adopted a descriptive survey research design. A sample of 384 farmers was drawn from an estimated population of 105,500 farmers across the ten wards of Agatu Local Government Area using the Krejcie and Morgan (1970) sample size determination table. Data were collected through a structured questionnaire and analyzed using descriptive statistics such as frequency counts, percentages, mean scores, and standard deviation. The findings revealed that financial literacy significantly enhances farmers’ ability to access credit facilities, adopt improved farming technologies, manage farm income effectively, and make sound investment decisions. The study also found that financially literate farmers recorded higher agricultural productivity, improved household livelihoods, and greater food security compared to their financially illiterate counterparts. The study concluded that financial literacy is an indispensable tool for sustainable agricultural development and rural economic transformation. It recommended increased financial education programs, strengthened extension services, and improved access to financial products tailored to the needs of rural farmers.