This study examined the impact of agricultural financing on agricultural output in Nigeria from 1986 to 2013. The study showed a two-way causation between government spending on agriculture and agricultural output in Nigeria. It was also revealed that agricultural financing was statistically significant in the long-run. Based on these findings, the study recommended that adequate budgetary provision and releases should be made to fund policy initiatives, drafting of financial policies that are targeted at increased agricultural output, improve the potential ability of traditional institutions to provide credit in the absence of collateral that could help improve access and transaction costs of financial institutions partaking in financing programmes.

Keywords: Agricultural financing, agricultural output and credit access.