Determinants of credit rationing among rural farmers in developing areas

2019 ◽  
Vol 79 (2) ◽  
pp. 158-173 ◽  
Author(s):  
Yusuf Ibrahim Kofarmata ◽  
Abubakar Hamid Danlami
Keyword(s):  
Agricultural Sector ◽  
Choice Model ◽  
Sampling Technique ◽  
Credit Rationing ◽  
Multinomial Logit Model ◽  
Integrated System ◽  
Agricultural Credit ◽  
Content Type ◽  
Rural Farmers ◽  
Multi Stage

Purpose The purpose of this paper is to model credit rationing among farmers in rural developing areas, based on micro level data of Kano State, Nigeria. Design/methodology/approach A total of 835 households and 45 microfinance banks were utilized as the samples of the study which were selected using multi-stage stratified sampling technique. Multinomial logit model was used to estimate the factors that determine credit rationing among the rural farmers in Nigeria. Findings The result of the discrete choice model shows that farmers who are either being engaged in subsistence farming or trading have a significant effect on credit rationing with the greatest impacts found on the farm profit and farmers’ location. Research limitations/implications This study failed to carry out a dynamic analysis regarding agricultural credit rationing. Also, it is well known that formal credit interacts with informal credit sector; nevertheless, this interaction was unaccounted for in this study. Therefore, future studies can expand the scope of this research to account for this interaction. In fact, investigating heterogeneity among credit providers will be an important topic in the future. Practical implications Clear and sound policies are required for the establishment of new agencies and financial institutions devoted to agricultural sector. Similarly, an integrated system of forward-looking policies based on tax and subsidy-regimes to augment desired incentives for private financial sector and NGOs to lend money to the farmers are needed. Originality/value Consistent with risk-balancing theory, the good story for farmers is that profit making farmers are less likely to be among the constrained borrowers. It turned out from the credit rationing model that urban farmers had a greater chance of being successful applicants in the Nigerian agricultural credit market. In comparison to farmers at periphery, urban residents are less likely to be associated with being constrained borrowers.

Agricultural credit rationing in Ghana: what do formal lenders look for?

2014 ◽  
Vol 74 (3) ◽  
pp. 364-378 ◽  
Author(s):  
Dadson Awunyo-Vitor ◽  
Ramatu Mahama Al-Hassan ◽  
Daniel Bruce Sarpong ◽  
Irene Egyir
Keyword(s):  
Financial Institutions ◽  
Agricultural Sector ◽  
Credit Rationing ◽  
Farm Size ◽  
Farm Income ◽  
Two Stage ◽  
Agricultural Credit ◽  
Content Type ◽  
Access To Credit ◽  
Improve Access

Purpose – The purpose of this paper is to investigate the determinants of agricultural credit rationing by formal lenders in Ghana. Design/methodology/approach – This study employed descriptive statistics, analysis of variance (ANOVA) and Heckman's two-stage regression model to identify types of rationing faced by farmers and investigate factors that influence agricultural credit rationing by formal financial institutions. Data used in this study are gathered through a survey of 595 farmers in seven districts within Brong Ahafo Region of Ghana. Findings – The result reveals that farmers face three types of rationing. Evidence from the Heckman two-stage models shows that engagement in off farm income generating activities, increase in farm size, positive balances on accounts and commercial orientation of the farmers has the potential to reduce rationing of credit applicants by formal lenders. Practical implications – The results provide information on the factors that need to be considered as important in an attempt to reduce agricultural credit rationing by formal lenders. Originality/value – The value of this study is that farmers would use the results of this study to improve access to required amount of agricultural credit from formal financial institutions. The information would also benefit stakeholders in the agricultural sector, particularly youth in agriculture program organized by Ministry of Food and Agriculture in Ghana as how to improve access to credit and reduce rationing of program participants by formal financial institutions.

scholarly journals Determinants of Inlet Choices of Sheep and Goats Traders in Ghana: A Case Study of Kumasi and Tamale

2017 ◽  
Vol 9 (7) ◽  
pp. 105
Author(s):  
Fallah Samuel Kassoh ◽  
Jusufu Abdulai ◽  
Osman Nabay ◽  
Rebecca Bockarie
Keyword(s):  
Small Ruminants ◽  
Transportation Cost ◽  
Sampling Technique ◽  
Multinomial Logit Model ◽  
Sampling Frame ◽  
Fuel Price ◽  
Middle Income ◽  
Sheep And Goats ◽  
Multi Stage ◽  
Major Factors

The consumption of Small ruminants’ meat (sheep and goat) form an integral component of an average Ghanaian’s diet due to the country’s emergence to a middle income earning status and awareness of the outstanding benefits of a nutritious diet. However, periodic shocks in market availability of products severely impacts access and in most cases cause price hike hence affecting dietary patterns especially of urban dwellers that are mostly habitual in recurrent consumption of these products. Against such insight, this study investigates the factors that influence the inlet choice of sheep and goats traders in two urban towns of Ghana (Kumasi and Tamale) using Multinomial logit model. The selection of Kumasi and Tamale markets were based on the progressive marketing and consumption of sheep (S) and goats (G). A multi stage sampling technique was used in this study. A reconnaissance survey was carried out in Kumasi and Tamale metropolis in order to identify the existing markets and to generate the sample frame. Ten markets were purposively selected based on the proximity of the markets to the urban centres. A total of 284 traders were randomly sampled from the sampling frame. A structured questionnaire was used to collect relevant data, and analyzed using descriptive statistics and inferential statistics. The results of the study showed that majority of the traders were male with most (43%) falling within the age range of 31 to 40 years. International market (Burkina Faso) was identified as the major source of sheep and goats with 37% of total respondents sourcing from there. The major factors found to be influencing the inlet choice of sheep and goats by sampled traders in the study areas were prices, licenses, quantity of animals handled, transportation cost, education, experience and age of the traders. Based on the findings of the study, the following recommendations were suggested to improve the SG trade in urban centres of Ghana: Credit provision to traders who desire it to establish and expand their investment; reduction of license cost; and general reduction of fuel price so as to ease economic mobility of products.

The current farm downturn vs the 1920s and 1980s farm crises

2018 ◽  
Vol 78 (4) ◽  
pp. 396-411 ◽  
Author(s):  
Wendong Zhang ◽  
Kristine Tidgren
Keyword(s):  
Interest Rates ◽  
Agricultural Sector ◽  
Balance Sheet ◽  
Real Income ◽  
Economic Downturn ◽  
Agricultural Credit ◽  
Content Type ◽  
Farm Crisis ◽  
Low Interest Rates ◽  
Sudden Collapse

Purpose The purpose of this paper is to examine the current farm economic downturn and credit restructuring by comparing it with the 1920s and 1980s farm crises from both economic and regulatory perspectives. Design/methodology/approach This paper closely compares critical economic and regulatory aspects of the current farm downturn with two previous farm crises in the 1920s and 1980s, and equally importantly, the golden eras that occurred before them. This study compares key aggregate statistics in land value, agricultural credit, lending regulations, and also evaluates the situations and impacts on individual farmer households by using three representative case studies. Findings The authors argue that there are at least three economic and regulatory reasons why the current farm downturn is unlikely to slide into a sudden collapse of the agricultural markets: strong, real income; growth in the 2000s, historically low interest rates; and more prudent agricultural lending practices. The current farm downturn is more likely a liquidity and working capital problem, as opposed to a solvency and balance sheet problem for the overall agricultural sector. The authors argue that the trajectory of the current farm downturn will likely be a gradual, drawn-out one like that of the 1920s farm crisis, as opposed to a sudden collapse as in the 1980s farm crisis. Originality/value The review provides empirical evidence for cautious optimism of the future trajectory of the current downturn, and argues that the current downturn is much more similar to the 1920s pattern than the 1980s crisis.

The influence of government support and awareness on rural farmers’ intention to adopt mobile government services in Tanzania

2017 ◽  
Vol 19 (1/2) ◽  
pp. 42-64 ◽  
Author(s):  
Herman Eliewaha Mandari ◽  
Yee-Lee Chong ◽  
Chung-Khain Wye
Keyword(s):  
Structural Equation ◽  
Ease Of Use ◽  
Government Support ◽  
Relative Advantage ◽  
Equation Modeling ◽  
Direct Influence ◽  
Content Type ◽  
Rural Farmers ◽  
Intention To Adopt ◽  
Multi Stage

Purpose Generally, this paper aims to develop a model by identifying factors which will assist policy makers in implementing m-government in Tanzania. The paper identifies direct and indirect factors which may influence adoption of m-government among the rural farmers in Tanzania. Design/methodology/approach The paper conducted a survey by using Drop Off/Pick Up method to collect data from rural farmers. Stratified and multi-stage sampling were used to collect 407 valid responses from rural farmers in Tanzania. Data collected were analyzed by using structural equation modeling (SEM). Findings The results show that government support has direct influence, while awareness has indirect influence through relative advantage, ease of use, compatibility and visibility. Furthermore, relative advantage, compatibility, ease of use, visibility and results demonstrability have direct influence on rural farmers intention to adopt m-government. Originality/value This study contributes to knowledge because no study in this area has been conducted in developing countries to examine factors that influence adoption of m-government. Furthermore, this study tests the mediating effects of perceived characteristics of innovation which have not yet been investigated to date.

Integrating factors influencing hijab purchase intention among Muslim women

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Munazza Saeed ◽  
Fadila Grine ◽  
Imran Shafique
Keyword(s):  
Purchase Intention ◽  
Reasoned Action ◽  
Religious Commitment ◽  
Muslim Women ◽  
Sampling Technique ◽  
Knowledge Source ◽  
Content Type ◽  
Competitive Edge ◽  
Multi Stage ◽  
Cluster Probability

Purpose This study aims to examine the hijab purchase intention of Muslim women by applying the theory of reasoned action: religious commitment, satisfaction (attitude), dressing style and knowledge source (subjective norms). Design/methodology/approach Data were collected from 603 Malay Muslim women in four universities through a self-administered questionnaire using a multi-stage cluster probability sampling technique. Smart PLS was used for data analysis. Findings The findings demonstrate that customers’ hijab purchase intention is significantly influenced by religious commitment, satisfaction, dressing style and knowledge source. Practical implications This study is for hijab designers because it is important for them to explore and examine the hijab purchase intention of Muslim women and then design the hijab accordingly, not only to capture a big segment in Kuala Lumpur but to obtain a competitive edge as well. Originality/value This is the first paper of its kind to examine the hijab purchase intention of Malay Muslim women.

Farm households’ perception on climate change and adaptation practices

2017 ◽  
Vol 9 (4) ◽  
pp. 433-445 ◽  
Author(s):  
Binaya Joshi ◽  
Weihong Ji ◽  
Narayan Babu Joshi
Keyword(s):  
Climate Change ◽  
Climate Change Adaptation ◽  
Agricultural Sector ◽  
Sampling Technique ◽  
Potato Production ◽  
Farming System ◽  
Adaptation Strategies ◽  
Agricultural Activity ◽  
Content Type ◽  
The Impact

Purpose This paper aims to assess the farming community’s perception on important parameters of climate change and identify major practices and technologies adopted to mitigate the impacts of climate change and their determinants in mountain district of Nepal. Being an agrarian economy and dependent on monsoon rain, the impact of climate change on agricultural productivity and production has been experienced. Different adaptation strategies have been adopted by the communities to cope with the consequences of climate change. Design/methodology/approach Four village development committees (VDCs) situated in the buffer zone of Langtang National Park of Rasuwa district representing rice, wheat, maize and potato production area was purposively selected for this study. A two-stage sampling technique was adopted for data and information collection. Thirty households from each VDC were randomly selected. Data on the socio-economic and climate change perception were collected using structured questionnaire. A binary logistic regression technique was used to identify the determinants of climate change adaptation technologies and practices. Findings The farmers’ decisions whether to adopt climate change adaptation technologies are governed by the size of landholding, perceived threat of climate change to food security, education level and gender of the interviewee, perception on the increased incidence of droughts during rainy season and income received from the off-farm sources. In a community where agricultural activity is the dominant means of living, adaptive strategies help to increase the capacity of a farming system to survive external shocks and cope with the consequences. Originality/value The assessment of farm-level adaptation strategies and factors influencing their adoption decision is important to formulate policies and design programs. This will also help to recognize adaptation as a tool for managing a variety of risks associated with climate change in agricultural sector.

Exploring the precipitators of violent conflict in Central Nigeria: a mixed methodology approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oluwole Ojewale
Keyword(s):  
Public Space ◽  
Quantitative Research ◽  
Census Data ◽  
Hate Speech ◽  
Sampling Technique ◽  
Violent Conflict ◽  
Population Pressure ◽  
Content Type ◽  
Multi Stage ◽  
Household Heads

Purpose The purpose of this paper is to identify and analyze the mutually reinforcing drivers of violent conflict in rural and urban communities in Central Nigeria. Design/methodology/approach This study adopts mixed approach of qualitative and quantitative research methodology through multi-stage sampling technique. This involved the purposive selection of Benue and Plateau States in Central Nigeria. The combination of household data collection and Geographic Information System led to the identification of 2,772, 117, 2,668 and 106 grids in Jos, Barkin Ladi, Makurdi and Gbajimba, respectively. This proportion constituted the clusters where household heads were chosen for questionnaire administration. Furthermore, a total of ten in-depth interviews were conducted. Findings The prominent precipitators of violent conflicts were: rise of criminal groups and criminal activities, hate speech, state’s inability to protect most citizens against violent crime, political intimidation by ruling party, over militarization of the public space. Others are rising population pressure, proliferation of small arms and light weapons and ban of open grazing. Research limitations/implications This study could be strengthened if broadened to include communities with different socioeconomic realities. Hence, the view presented in this paper may not be considered generalizable to other parts of the country with different cultural settings. Originality/value The methodology offers a reliable alternative to combine sampling approaches for household surveys that can help address problems occasioned by the lack of census data.

Records management practices in the administration of the Church of Nigeria (Anglican Communion)

2016 ◽  
Vol 26 (1) ◽  
pp. 4-20
Author(s):  
Bosede Adebimpe Ajiboye ◽  
Olubunmi Gabriel Alegbeleye ◽  
Sarah Okonedo ◽  
Wuraola Janet Oyedipe ◽  
Sunday Oluwafemi Emmanuel ◽  
...  
Keyword(s):  
Positive Relationship ◽  
Management Practices ◽  
Sampling Technique ◽  
Records Management ◽  
Content Type ◽  
Ex Post ◽  
Multi Stage ◽  
Ex Post Facto ◽  
Strongly Agree ◽  
The Church

Purpose – The purpose of this study is to examine records management practices as factors influencing the administration of the Church of Nigeria (Anglican Communion). Design/methodology/approach – The study adopted the causal-comparative research design of the ex post facto type. The multi-stage sampling technique was used to select the sample for the study. A four-point Likert scale questionnaire that ranged from strongly disagree, disagree, agree and strongly agree was used to collect data. Three research questions were raised and answered. Data collected were analyzed using descriptive statistics. Findings – The outcome shows the various records management practices that the Church engaged in which include the creation, maintenance, ease of access to, use, preservation and final disposal of the records. Other findings of the study also revealed the joint influence (positive relationship) of records management practices (records creation, use, maintenance and retention or disposal) on the administration of the Church of Nigeria (Anglican Communion) to be significant which follows that there is a significant positive relationship between records management practices and administration of the Church of Nigeria (Anglican Communion). Also, it is only record use (β = 0.27; t = 5.53; p < 0.05) that has a significant relative influence on the Church of Nigeria’s (Anglican Communion) administration. Others like record creation or received (β = 0.02; t = 0.28; p > 0.05), records maintenance (β = −0.06; t = −0.93; p > 0.05) and records retention or disposal (β = 0.11; t = 1.76; p > 0.05) have no significant influence on the church administration. Therefore, it is only records use that can predict or influence the administration of Anglican Church positively. Originality/value – The study is the original findings of the authors.

Agricultural credit risk and the macroeconomy

2017 ◽  
Vol 77 (1) ◽  
pp. 164-180 ◽  
Author(s):  
Andrew M. Johnson ◽  
Michael D. Boehlje ◽  
Michael A. Gunderson
Keyword(s):  
Credit Risk ◽  
Agricultural Sector ◽  
Farm Income ◽  
Financial Health ◽  
Agricultural Credit ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Macroeconomic Variables ◽  
Agriculture Sector ◽  
Farm Credit

Purpose The purpose of this paper is to explore the linkage between agricultural sector and macroeconomic factors with farm financial health. It considers whether agricultural lenders can more accurately anticipate changes in the credit quality of their portfolios by considering broad economic indicators outside the agriculture sector. Design/methodology/approach This paper examines firm, sector, and macroeconomic drivers of probability of default (PD) migrations from a sample of 153 grain farms of actual lender data from Farm Credit Mid-America’s portfolio. A series of ordered logit models are developed. Findings Farm-level and sector-level variables have the most significant impact on PD migrations. Equity to asset ratios, working capital to gross farm income ratios, and gross corn income per acre are found to be the most significant drivers of PD migrations. Macroeconomic variables are shown to unreliably forecast PD migrations, suggesting that agricultural lenders should emphasize firm and sector variables over macroeconomic factors in credit risk models. Originality/value This paper builds the literature on agricultural credit risk by testing a broader set of sector and macroeconomic variables than previous articles. Also, prior articles measured the direction but not magnitude of PD migrations; the ordered model in the analysis measures both.

Examining the penetration of financial inclusion in the agricultural sector: evidence from small-scale farmers in Enugu State, Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ambrose Nnaemeka Omeje ◽  
Augustine Jideofor Mba ◽  
Michael Okike Ugwu ◽  
Joseph Amuka ◽  
Perpetual Ngozi Agamah
Keyword(s):  
Agricultural Sector ◽  
Financial Inclusion ◽  
Small Scale ◽  
Agricultural Credit ◽  
Content Type ◽  
Rural And Urban ◽  
Time Gap ◽  
Enugu State ◽  
Small Scale Farmers ◽  
Practical Implications

PurposeThe study examined the penetration of financial inclusion in the agricultural sector, using small-scale farmers in Enugu State, Nigeria, as evidence.Design/methodology/approachThe study utilized survey data generated from 425 questionnaires administered to small-scale farmers in both rural and urban locations in Enugu State. The study applied the adequacy gap, timeliness gap and penetration gap indices to measure the penetration of financial inclusion among the small-scale farmers in Enugu State.FindingsIt was found that different lending agencies, except for some cooperative societies, were unable to meet the credit needs of small-scale farmers in Enugu State as shown by the adequacy gap index. The timeliness gap index revealed the existence of time gap in the credit receipt of small-scale farmers given that agriculture is rain-fed in Enugu. The penetration gap index indicated that there is gap in the penetration of agricultural credit grants to small-scale farmers in Enugu State, showing a shallow penetration of financial inclusion in agricultural sector.Research limitations/implicationsThe research is limited in scope as a result of data and the desire to study small-scale farmers in Enugu State, Nigeria.Practical implicationsThe study recommended among others that government should encourage cooperatives more to meet credit needs of farmers in order to raise the level of financial inclusion penetration.Originality/valueTo the best of the authors' knowledge, this is the only study that examines the penetration of financial inclusion among small-scale farmers in Enugu State, Nigeria. This study contributes to the growing literature on financial inclusion in the agricultural sector as there is dearth of literature in this study area.

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