The primary data : A list of smallholder farmers in Abia State who benefited from NACRDB loan was collected from NACRDB. From each of the three agricultural zones in Abia State namely Aba, Ohafia and Umuahia a random sample of 30 beneficaries was selected giving atotal of 90 beneficiaries for the state. A structured questionnaire was used to elicit and collect information from the farmers. Data analysis involved the use of mean, frequencies, percentages multiple regression and the discriminant analysis.