scholarly journals IMPACT OF AGRICULTURAL CREDIT ACCESS ON AGRICULTURAL PRODUCTIVITY AMONG MAIZE AND RICE SMALLHOLDER FARMERS IN RWANDA

2021 ◽  
Vol 59 (1) ◽  
Author(s):  
Nathan Kanuma Taremwa ◽  
Ibrahim Macharia ◽  
Eric Bett ◽  
Eucabeth Majiwa
Keyword(s):  
Smallholder Farmers ◽  
Agricultural Productivity ◽  
Structured Interviews ◽  
Agricultural Credit ◽  
Credit Access ◽  
Maize Productivity ◽  
Rice Farmers ◽  
Specific Analysis ◽  
The Impact ◽  
Matching Techniques

This paper assesses the impact of access to agricultural credit on the agricultural productivity of 422 smallholder farmers that cultivate maize or rice in the Western and Eastern province of Rwanda. Stratified, simple random and convenience sampling techniques were used to sample districts, sectors, cells and households. Data were collected using structured interviews and analyzed using propensity score matching techniques. Results indicated that productivity was higher by 44% among the farmers who accessed credit implying that they harvested on average an extra 440 kilograms of maize or rice. According to a crop-specific analysis, agricultural credit access had a more significant impact on maize productivity, with a difference in proportion of 68% (p = 0.000) but had no impact on rice productivity (p = 0.149). The study concludes that agricultural credit was important for Rwanda’s agricultural productivity. Thus policy measures should aim at improving smallholder farmers’ access to agricultural credit and promoting the use of modern agricultural inputs, particularly among rice farmers in Rwanda

scholarly journals Effect of Agricultural Credit Access on Rice Productivity: Evidence from the Irrigated Area of Anambe Basin, Senegal

2020 ◽  
Vol 12 (3) ◽  
pp. 78
Author(s):  
Mouhamadou Foula Diallo ◽  
Jiajun Zhou ◽  
Hamidullah Elham ◽  
De Zhou
Keyword(s):  
Technical Efficiency ◽  
Land Tenure ◽  
Stochastic Frontier Analysis ◽  
Rice Production ◽  
Agricultural Credit ◽  
Credit Access ◽  
Frontier Analysis ◽  
Rice Productivity ◽  
Rice Farmers ◽  
The Impact

Rice is an important staple food in many developing countries, especially in Senegal. However, rice production in Senegal only meet 20% of the domestic demand largely due to the poor performance of rice farmers and low productivity. Access to agricultural credit has strong impacts on the technical efficiency of farmers and would promote inputs and new technology adoption. But that is not clear enough in previous studies. This study investigates the impact of agricultural credit access on rice productivity and technical efficiency with 260 random sampled rice farmers from Anambe basin in Senegal. The Stochastic Frontier Analysis (SFA) was adopted to estimate the technical efficiency. The results indicate that the inputs of rice production, including labor, pesticide, herbicides and fertilizer, have significant impacts on rice productivity. Furthermore, the results present that the average efficiency is of 0.813 and the inefficiency estimation model reveals that the influences of agricultural credit access, gender, education, ethnicity, use of improved seed and land tenure system on technical inefficiency of rice production are significant. Particularly, for the access to agricultural credit, rice farmers without agricultural credit would get 3.8% higher production inefficiency. The farmers with access to credit yield 37.32% higher rice production than their counterparts. Therefore, our study provides strong empirical evidence to promote agricultural credit in rice production.

scholarly journals Characterization of smallholder farmers and agricultural credit institutions in Rwanda

2021 ◽  
Vol 21` (01) ◽  
pp. 17343-17364
Author(s):  
Nathan K Taremwa ◽  
◽  
I Macharia ◽  
E Bett ◽  
◽  
...  
Keyword(s):  
Information Asymmetry ◽  
Smallholder Farmers ◽  
Arable Land ◽  
Agricultural Credit ◽  
Convenience Sample ◽  
Credit Access ◽  
Access To Credit ◽  
Information Gap ◽  
Lending Institutions ◽  
Credit Institutions

The significance of access to agricultural credit in perpetuating agricultural productivity is unquestionable, because it is a means to achieving optimal productivity. The minimization of any barriers to agricultural credit access should,thus,be a global priority. One of the most significant and current barriers to agricultural credit access is information asymmetry which results into mutual distrust between lending institutions and borrowers in this case the smallholder farmers. To address information asymmetry, both the lending institutions and borrowers need to have definitive descriptive information about either party. Without the profiling of institutions and potential borrowers, an information gap persists, thereby increasing mutual distrust. This study addresses that gap, in the context of Rwanda by characterizing smallholder farmers and agricultural credit institutions. Across-sectional survey design was used in this study with smallholder farmers and staff in agricultural credit institutions in the Eastern, Western, and Central provinces of Rwanda as the units of analysis. A multistage sampling procedure was used,with stratified sampling of administrative levels spanning from province(stage 1) to districts (stage 2) and sectors(stage 3),followed by a simple random sampling of cells per sector, and the convenience sample of households. Staff in the financial institutions were purposively sampled. The data collected was analyzed using principal component analysis and cluster analysis with the K-means statistic(SPSS version 25). The largest cluster of smallholder farmers has the following characteristics: household size of1to 5 people, farmers with education, owning arable land not exceeding a hectare, with more than five years of farming experience,earning from other off-farm activities, with no dependents under five years of age, and renting less than an acre of land. As for agricultural credit institutions, the largest cluster has following compositions:have mechanisms or measures established for managing loan defaults with the majority using refinancing, rescheduling, and collateral release, with variable loan payback options, and provide targeted agricultural credit to farmers such as agricultural input premium.The research findings are particularly pertinent for maize-and rice-growing farmers,and how to reduce the information gap and the implications of broadening access to credit to smallholder farmers were discussed. This study emphasizes the need for characterization for both parties to be better informed about the characteristics and dynamics of each other, all in a bid to lessen asymmetric information and thus improve access to credit.

The Impact of IFAD-Value Chain Development Programme to Rice Yield and Income Among Smallholder Farmers in Ardo-Kola LGA, Taraba State, Nigeria

2021 ◽  
Vol 7 (4) ◽  
pp. 66-74
Author(s):  
E.D Oruonye ◽  
◽  
Tukura Ejati Danladi ◽  
M Joseph ◽  
Menwo Ukechi Wilson-Osigwe
Keyword(s):  
Value Chain ◽  
Rice Yield ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Development Programme ◽  
T Test ◽  
Rice Farming ◽  
Intervention Programme ◽  
Rice Farmers ◽  
The Impact

The study assesses the impact of IFAD-VCDP on rice yield and farmers’ income, as well as constraints to IFAD-VCDP implementation in the study area. A purposive sampling method was adopted to select 220 rice farmers. Primary and secondary data were used. Questionnaires were used to collect information from the beneficiaries of the programme. The respondents verified the claims of the programme with respect to the provisions of farm inputs, extension service and basic infrastructures. A paired-samples t-test was used to analyze the data. The findings of the study revealed that 55% of the respondents have yields between 1–10 bags (100kg) and after the intervention, 52% of the respondents had yield of 61–80 bags (100kg). Similarly, 43% of the respondents have income between N51,000-N70,000 before the intervention programme and after the intervention, 52% of the respondents have income between N141,000-N170,000 and 42% have between N171,000-N200,000. This shows significant positive impacts on crop yield and income. The results of the paired-sample t-test show that there is difference in the mean income of rice farmers before IFAD-VCDP intervention (M = 2.54, SD = .81) and after IFAD-VCDP intervention (M = 4.35, SD = .59) at the .05 level of significance (t = 27.25, df = 219, n = 220, p< .05, 95% CI for mean difference 1.68 to 1.94). Given the positive impact of the IFAD-value chain development programme on rice farming in the study area, there is a need to extend it to other rice-producing LGA in Taraba State. Keywords: Ardo Kola, IFAD, Rice farming, Smallholder farmers and VCDP.

Does contract farming improve rice farmers' food security? Empirical evidence from Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reuben Jagri Binpori ◽  
Dadson Awunyo-Vitor ◽  
Camillus Abawiera Wongnaa
Keyword(s):  
Food Security ◽  
Market Access ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Contract Farming ◽  
Data Set ◽  
Content Type ◽  
Rice Farmers ◽  
Food Security Status ◽  
The Impact

PurposeIn order to improve access to resources for smallholder farmers, efforts are being made to promote contract farming in Ghana. This is seen as a strategy to increase agricultural productivity of farmers, give better market access and guarantee adequate supply of raw materials to agro-based industries. However, the challenge is whether contract farming leads to improvement in food security status of farmers. The study therefore seeks to explore to what extent farmers' food security status is influenced by their participation in contract farming activities.Design/methodology/approachUsing Cragg's double-hurdle model to analyse participation in contract farming, the authors control for selection bias using propensity score matching applied to a data set of 336 observations to examine the impact of contract farming on the food security levels of rice farmers in Ghana.FindingsThe results of this study show that yield of paddy and the wealth of the farmer are the main factors that influence the quantity of paddy rice to be contracted in contract farming arrangements. This study also finds that participation in contract farming will increase food security by 109%. In conclusion, contract farming has a significant positive impact on the farmers' food security status.Originality/valueAgricultural policies and rural development initiatives supporting the promotion and expansion of contract farming should be pursued to persuade more farmers to produce under contract farming agreements.

Participation in farmers' organization and production efficiency: empirical evidence from smallholder farmers in Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Subir Bairagi ◽  
Khondoker Abdul Mottaleb
Keyword(s):  
Production Efficiency ◽  
Service Providers ◽  
Rice Yield ◽  
Smallholder Farmers ◽  
Sample Selection ◽  
Primary Data ◽  
Stochastic Production Frontier ◽  
Content Type ◽  
Rice Farmers ◽  
The Impact

PurposeFarmer organizations (FOs) can elevate many of the production- and marketing-related challenges by ensuring access to technology, farming information and loan for inputs and mechanization. This study assesses the major factors that affect the participation in FOs by the smallholder rice farmers in Bangladesh and evaluates the impacts of the participation on rice yield and production efficiency.Design/methodology/approachThe present study used primary data collected from 1,000 smallholder rice farmers in northwest Bangladesh, consisting of 250 farmers those participated in an organization. This study utilized a sample selection stochastic production frontier (SPF) method, a combination of the conventional SPF and the Heckman's sample selection model, to control for biases stemming from observed and unobserved attributes.FindingsThis study demonstrates that participation in an organization is significantly affected by smallholder rice farmers' education, occupation, family size, household income, land ownership and the location where they reside. At the same time, the participation status affects the productivity of smallholder farmers. Findings indicate that farmers who participated in an organization had higher rice yield (11% more) and were technically more efficient (1.4 percentage points higher) compared to farmers who did not participate.Research limitations/implicationsSince this study was carried out with representative sampled farmers from northwest Bangladesh, the findings may not represent all farmers' perceptions of FOs in the country.Originality/valueEven though more than 200,000 FOs are currently in operation, knowledge regarding the effectiveness of Bangladesh's FOs is limited. Notably, this study used a relatively new method, sample selection SPF model, to investigate the impact of FOs on the production efficiency of smallholder rice farmers in northwest Bangladesh. Therefore, this study contributes to the literature in elucidating the factors affecting participation in FOs and its impact on rice yield and efficiency. Since FOs have been somewhat ineffective in their role as service providers in Bangladesh, this study’s results will guide policymakers to intervene more successfully regarding the changes needed.

‘Slow to change’: Farmers’ perceptions of place-based barriers to sustainable agriculture

2017 ◽  
Vol 32 (6) ◽  
pp. 511-523 ◽  
Author(s):  
Samantha Grover ◽  
Joshua Gruver
Keyword(s):  
Smallholder Farmers ◽  
Ecological Factors ◽  
Past Research ◽  
Qualitative Inquiry ◽  
Local Context ◽  
Small Scale ◽  
Agricultural Policies ◽  
Structured Interviews ◽  
Regional Factors ◽  
The Impact

AbstractSmallholder farmers are an important and growing segment of the farm population in Indiana and in the USA. Past research regarding farmer decision-making has been inconsistent and has largely focused on the larger-scale, conventional farmer, leaving smallholders poorly understood. There is a need to better understand the management decisions of smallholder farmers within their regional context to promote efforts toward environmental, social and economic sustainability. Through in-depth qualitative inquiry, this study investigated the impact of regional factors that influence farmers’ decisions and the barriers and opportunities most relevant to farm viability and sustainability in the context of East Central Indiana (ECI). Semi-structured interviews with 15 key informants and 33 farmers informed our understanding of the factors most relevant to small-scale farming in the region. Several important themes emerged related to perceived barriers to sustainable farm management, including markets; structures and regulations; time and labor; environmental/ecological factors; and networking and access to educational support. The results of this study complement the findings of previous work that describe the complex framework farmers navigate when making decisions on the farm. Further, subtle regional factors emerged that significantly impact farmers’ decisions, emphasizing the importance of local context in crafting agricultural policies and outreach efforts. Implications and recommendations for ECI are discussed.

The impact of informal credit on rural agricultural productivity in the savannah ecological zone of Ghana

2019 ◽  
Vol 11 (2) ◽  
pp. 301-315
Author(s):  
Samuel Sekyi ◽  
Paul Bata Domanban ◽  
George Kwame Honya
Keyword(s):  
Agricultural Productivity ◽  
Farm Households ◽  
Baseline Survey ◽  
Current Debate ◽  
Ecological Zone ◽  
Informal Credit ◽  
Content Type ◽  
Credit Access ◽  
Rural Ghana ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of informal credit access on agricultural productivity in rural Ghana. Design/methodology/approach Data sets from the Ghana Feed the Future baseline survey involving a total sample of 2,437 rural farm households were used. In order to address the problem of endogeneity and sample selectivity bias, the endogenous switching regression (ESR) model was employed to examine whether rural farm households’ with access to informal credit and those without access differ in terms of their productivity levels and whether access to informal credit affects agricultural productivity. Findings Estimates from the ESR show that access to informal credit significantly promotes agricultural productivity. Specifically, farmers with access to informal credit were able to achieve a yield of 48.42 kg/ha more than their counterparts without informal credit access. In terms of the counterfactual, farmers without informal credit access would have increased their yield by 57.61 kg/ha if they were to have access to informal credit. Research limitations/implications The study was restricted to the savannah ecological zone of Ghana. This limits the extent of generalisation of results. Originality/value This study provides a rigorous econometric analysis of the impacts of access to informal credit on agricultural productivity in rural Ghana. The study contributes to the current debate on the link between access to informal credit and agricultural productivity and provides valuable input for policymakers.

scholarly journals Can Credit Program Improve Agricultural Productivity? Evidence from Indonesia

2021 ◽  
Vol 232 ◽  
pp. 01006
Author(s):  
Gilang Wirakusuma ◽  
Irham Irham
Keyword(s):  
Agricultural Productivity ◽  
Least Square ◽  
Farm Households ◽  
Government Programs ◽  
Cross Sectional ◽  
Agricultural Credit ◽  
Household Level ◽  
Agricultural Census ◽  
The Difference ◽  
The Impact

Agricultural credit is a vital policy in improving farm performance since agricultural households face financial constraints in their business. This study aims to: (1) examine the impact of credit s on agricultural productivity while investigating the difference in impact generated by loans originating from governmental program loans and nonprogram loans and; (2) identify the characteristics of farm households that influence the use of credit in their business. This study employed cross-sectional micro-data at the household level drawn from the 2013 Indonesian Agricultural Census, in which 86,922 rice farm households were randomly selected as the research sample. The model was examined by using Two-Stage Least Square to avoid the selectivity bias. Results show that credit originated from government programs has a small impact on agricultural productivity, although the significant correlation appears. Furthermore, the use of credit, both government programs, and non-programs are determined by socio-economic aspects, agricultural subsidy, perceptions on risks, and perception on-farm profitability. Based on the results, the provision of credit to agricultural activities has to be supported by the provision of supporting incentives, such as agricultural counseling and irrigation facilities, in order to boost agricultural productivity effectively.

Does rainfall variability explain low uptake of agricultural credit? Evidence from Ethiopia

2021 ◽  
Author(s):  
Kibrom A Abay ◽  
Bethelhem Koru ◽  
Jordan Chamberlin ◽  
Guush Berhane
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Credit Markets ◽  
Smallholder Farmers ◽  
Rainfall Variability ◽  
Credit Rationing ◽  
Sub Saharan Africa ◽  
Agricultural Credit ◽  
Production Risk ◽  
The Impact

Abstract Credit markets are key instruments by which liquidity-constrained smallholder farmers may finance productive investments. However, the documented low demand and uptake of agricultural credit by smallholder farmers in sub-Saharan Africa pose challenges for energizing rural transformation in the region. In this paper, we investigate the impact of rainfall uncertainty—a major source of production risk—on the uptake of credit by rural farm households in Ethiopia. We further examine whether rainfall uncertainty explains credit rationing among those households not participating in rural credit markets. We find that rainfall variability discourages the uptake of agricultural credit. We also find that rainfall variability is associated with credit risk rationing, expressed as low demand for agricultural credit. We show that our findings are robust to alternative ways of constructing rainfall variability (inter-annual or inter-seasonal) and a battery of robustness checks. For instance, we show that rainfall variability is a strong predictor of credit uptake in rural areas while less relevant in urban areas. We also document heterogeneous responses to rainfall variability; those households living in the arid and semi-arid lands of Ethiopia, which are believed to be more vulnerable to recurrent weather shocks, are more responsive to rainfall variability in terms of reduced uptake of agricultural credit. Our results highlight the impacts of uninsured production risk on the demand for agricultural credit and hence smallholder agricultural investments. Our findings suggest the importance of interventions aimed at relaxing smallholders’ credit rationing while also reducing their production risk.

scholarly journals Reinforcing social learning beyond video: lessons from the sasakawa global 2000 rice videos in kamwenge district, Uganda

2019 ◽  
Vol 9 (1) ◽  
pp. 66-72
Author(s):  
G Karubanga ◽  
F Okry ◽  
P Kibwika ◽  
JG Agea ◽  
H Sseguya
Keyword(s):  
Social Learning ◽  
Qualitative Data ◽  
Structured Interviews ◽  
Group Discussions ◽  
Rice Farmers ◽  
Quantitative Data Analysis ◽  
Key Informant ◽  
The Impact ◽  
Exchange Visit

The study assesses how social learning was triggered and reinforced through video-mediated extension as used by Sasakawa Global 2000 (SG 2000) from 2007 to 2010 among rice farmers in Kamwenge district, Uganda. A longitudinal study involving six focus group discussions and 100 semi-structured interviews were conducted in August 2015 to February 2016, and later 21 key informant interviews in June 2018 to generate data from farmers. While thematic-content analysis was used for the qualitative data, SPSS v.18 was used for quantitative data analysis. Results indicate that video-complementary extension methods were non-discriminative as evidenced by the diversity of farmers who participated in the demonstration sites, field days and exchange visits in terms of age mix and level of education attained. Furthermore, use of videos in extension is more effective when combined with other complementary follow-up extension methods; thus, deepening social learning among farmers. For effective scaling-up of the impact of video-mediated extension messages, use of complementary extension methods such as demonstration plots, exchange visit and field days offer greater opportunities for developing more localized videos for farmer learning. However, this requires pragmatic retooling of extension workers to effectively document local videos on the interactive learning that occurs in these complementary extension methods. Int. J. Agril. Res. Innov. & Tech. 9 (1): 66-72, June, 2019

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