Structural pathways from agricultural finance to community health outcomes: evidence from rice farmers in Nigeria

This study investigates pathways from agricultural finance to community health outcomes in Nigeria, emphasizing the mediating roles of food security and rural livelihoods. The analysis focused on 300 rice farmers benefiting from the anchor borrowers’ program, selected through purposive and random sampling. Primary data were analyzed using structural equation modeling to estimate direct and indirect effects. Findings show agricultural finance significantly improves food security (p < 0.01), enhances rural livelihoods (p < 0.01), and positively influences community health outcomes (p < 0.05). Food security (p < 0.01) and rural livelihoods (p < 0.01) both have significant positive relationships with community health, measured by self-reported illness frequency and healthcare visits, with livelihoods showing a stronger effect. Mediation analysis confirms food security and rural livelihoods are important pathways through which agricultural finance translates into improved community health. Agricultural finance explains 41% of variation in food security, 51% in rural livelihoods and 66% in community health outcomes. The model showed a good fit (χ2/df = 2.10, CFI = 0.93, TLI = 0.91, RMSEA = 0.065 and SRMR = 0.052). The study concludes that agricultural finance improves community health directly and indirectly via strengthened food security and improved rural livelihoods. Policy interventions should adopt integrated approaches expanding financial access while enhancing food systems, supporting livelihood diversification and building rural resilience.