An investigation was carried out among small-scale farmers in the Niger inland valley of Niger State to examine the factors affecting the variation in income. The objectives were to examine the factors and the nature of their influence. Structured questionnaire was used to collect the data from the respondents who were stratified as borrowers and non-borrowers of Bejin-Doko Community Bank (Nig.) Ltd, Doko during the 1995/96 farming season. The data collected were analysed using regression techniques. Among the important factors identified and examined were farm size, number of livestock, family labour, hired machinery and whether the non-borrower has account with the bank or not. All these factors were significantly different from zero although some had decreasing relationship, contrary to expectation. The major policy direction drawn was for an increased emphasis on livestock production because of its low maintenance cost and higher returns. Also, the need to adequately fund non-formal rural financial institutions, instead of modernising them, was stressed.