Appraisal of the Salam Islamic Mode of Financing Agribusiness and Agriculture among Rural Farmers in Bauchi State of Nigeria

The study focuses on the socio-economic characteristics of the rural farmers in order to relate the viability of an alternative ethical financing and investment in the quest for economic self-reliance and sufficiency in the study area. The study attempts to examine the influence of perceptions, attitudes, religious belief, and subjective norm on farmers' patronage of Islamic mode of financing agribusiness and agriculture. No study of this nature was found by these researchers in Bauchi State. The study adopted a survey method in which 150 questionnaires were administered to rural farmers, 118 were returned. The study employed the use of multiple regressions using STATA software. Although findings revealed that there is a positive relationship between farmers' perception of Salam on agribusiness and agriculture, but there is no influence between perception of Salam and agribusiness efficiency and agricultural productivity. Results also showed positive relationship between the roles of Bai' Salam (Forward Sale Financing) Islamic mode of financing and the agribusiness efficiency and agricultural productivity, of which if properly harnessed will go a long way to ensure the practicability of new agricultural ethical finance and as well accelerate the viability of agribusiness efficiency and agricultural productivity. The study believed that the Salam provide an alternative solution to agricultural finance since its contains, interest free repayment, manipulations free from gambling, efficient credit supply, price stabilization free corruption, source of employment/eradication of poverty as well as driver towards economic growth and development. The overall recommendation suggested that Muslims and Non-Muslims alike in Nigeria especially those into farming shall as much as possible made to embrace Salam, in order to benefit optimally from this new economic and financial phenomenon that is cutting across religious affiliations, cultural differences and geographical boundaries.