scholarly journals Institutional Factors Influencing the Decision to Take Financial Credits among Small Holder Coffee Farmers in Rwanda

2018 ◽  
Vol 6 (03) ◽  
Author(s):  
Iyakare Super Mpirwa ◽  
David Mwehia Mburu ◽  
Patrick Mulyungi ◽  
Ntaganira Eric ◽  
Nsengiyumva Aimable
Keyword(s):  
Smallholder Farmers ◽  
Road Transport ◽  
Institutional Factors ◽  
Primary Data ◽  
Agricultural Credit ◽  
Credit Access ◽  
Access To Credit ◽  
Factors Influencing ◽  
Multi Stage ◽  
Coffee Farmers

Though, a lot of emphasis has been put to decentralize financial institutions to offer agricultural credit, access to credit in many rural households in Rwanda remains limited, so far no study done in the study area on institutional factors influencing the decision to take credit. This study investigated the institutional factors influencing the decision to take credit among smallholder coffee farmers in Gisagara District, Southern Province of Rwanda. A Multi stage sampling techniques was employed to select respondents. Primary data were drawn from222 smallholder farmers using structured questionnaires.Binary logistic regression was employed to estimate the data. The results indicated that the institutional factors which influenced access to credit were cooperative membership, extension services, information on credit use, fear take risk and distance to coffee washing station. Based on the findings of the study, recommended that in order to increase access to use agricultural credit there is need to focus in organizing coffee producers in cooperatives, strengthen the current strategies of extension, education and infrastructural services particularly for road transport.

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.

Subsistence farmers’ access to agricultural credit and its adequacy

2018 ◽  
Vol 45 (4) ◽  
pp. 644-660 ◽  
Author(s):  
Shahab E. Saqib ◽  
John K.M. Kuwornu ◽  
Mokbul Morshed Ahmad ◽  
Sanaullah Panezai
Keyword(s):  
Annual Reports ◽  
Primary Data ◽  
Tobit Regression ◽  
Credit Policy ◽  
Agricultural Credit ◽  
Subsistence Farmers ◽  
Content Type ◽  
Credit Access ◽  
Access To Credit ◽  
The Government

Purpose The Government of Pakistan has allocated a substantial proportion of agricultural credit to subsistence farmers. The purpose of this paper is to analyze farmers’ access to credit and its adequacy in the light of current agricultural credit policy of Pakistan. Design/methodology/approach The study has used both secondary and primary data for analysis. Secondary data were collected from the annual reports of Pakistan Economic Survey and State Bank of Pakistan. Primary data were collected from 168 subsistence farmers through households’ survey. Farmers’ credit access and credit adequacy were measured using credit access ratio and credit adequacy ratio, respectively. The Student’s t-test and analysis of variance were used to assess the differences in credit access and adequacy among farmers’ groups (i.e. upper, medium and lower subsistence farmers). Tobit regression model was employed to determine the factors influencing credit adequacy among farmers. Findings The empirical results revealed that the amount of credit provided to subsistence farmers was less than stated in the national agricultural credit policy. Upper subsistence farmers had more access to credit than lower and medium subsistence farmers. Lower subsistence farmers had above average access to informal sources of credit, and had below average access to formal sources. The findings also revealed that lower subsistence and medium subsistence farmers had the highest credit inadequacy of funds for investment in agriculture. The results of the Tobit regression revealed that age, education, experience, household size, total landholding of farmer and proportion of own land influenced the agricultural credit adequacy. Practical implications Most of the credit was distributed among the upper subsistence farmers. Lower subsistence farmers were still largely dependent on informal credit for farm production activities. The Government of Pakistan performed poor in the implementation of agricultural credit policy, and has failed to help subsistence farmers in their access to formal credit. It is needed to revamp the agricultural credit policy and facilitate credit acquisition by subsistence farmers, particularly for tenant farmers. It is important that the Government may classify the subsistence farmers into subgroups, and reallocate the funds accordingly. This study has lessons and implications for agricultural finance initiatives in developing countries. Originality/value Previous studies have focused primarily on access to agricultural credit. However, this study has adopted a holistic approach by using secondary and primary data to assess the farmers’ access to credit and adequacy. In addition, limited literature is available to explore the farmers’ accessibility and adequacy of agricultural credit. Furthermore, this study has focused exclusively on the farmers who are living in the flood-prone areas of Pakistan.

Flexible loans and access to agricultural credit for smallholder farmers in Kenya

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fredrick Onyango Odhiambo ◽  
Radha Upadhyaya
Keyword(s):  
Smallholder Farmers ◽  
Multiple Correspondence Analysis ◽  
Household Wealth ◽  
Truncated Regression ◽  
Agricultural Credit ◽  
Content Type ◽  
Credit Access ◽  
Access To Credit ◽  
Main Determinants ◽  
Lending Institutions

PurposeThe purpose of this paper is to determine the level of flexibility in loan products offered to smallholder farmers in Siaya County in Kenya and to examine the effect of flexibility on access to credit.Design/methodology/approachThe paper uses primary survey data from a sample of smallholder farmers in Siaya County in Kenya who had borrowed from various lending institutions within the study area. The paper develops an index variable of loan flexibility using multiple correspondence analysis (MCA) technique. The model is estimated using both OLS and truncated regression analyses. Access to credit is measured as the amount of loan borrowed by each farmer.FindingsThe authors find that the level of flexibility of loans offered to farmers is low. Furthermore, the authors find that the level of flexibility is not significantly correlated to access to credit. Further analysis using individual components of flexible loans show that refinancing and lines of credit are more likely to improve access to credit when farmers are more educated and wealthier, respectively. The age of a farmer, the type of lender, the type of loan, education and household wealth are the main determinants of access to credit.Originality/valueThe paper adds to the debate on access to credit by showing that theoretically, while loan flexibility should lead to higher credit access, this is not a key determinant of access to credit in this context.

scholarly journals Analysis of Institutional Factors Influencing Adoption of Zero-grazing Dairy Farming Technology among Smallholder Farmers in Bondo Sub County, Kenya

2019 ◽  
pp. 1-12
Author(s):  
G. O. Okello ◽  
E. Saina ◽  
L. Ngode
Keyword(s):  
Group Membership ◽  
Smallholder Farmers ◽  
Dairy Farming ◽  
Institutional Factors ◽  
Primary Data ◽  
Extension Services ◽  
Factors Influencing ◽  
Depth Analysis ◽  
Zero Grazing ◽  
Dairy Technology

Adoption of zero-grazing addresses challenges faced by smallholder farmers. In Bondo Sub-County adoption of zero-grazing technology has remained low at 4-8 percent despite its introduction in the area in 1990s. No in-depth analysis has ever been conducted on the factors responsible for low adoption of this technology. The purpose of this study was to analyze institutional factors influencing adoption of zero grazing dairy farming technology. The study was carried in Bondo Sub-County, Kenya between February to November 2018. A study was conducted on a sampled population of 279 from a target population of 4253 smallholder farmers. These consisted of adopters and non-adopters of zero-grazing dairy technology. Purposive, proportionate, simple random and systematic sampling techniques were used to select households. Structured questionnaire was administered during primary data collection. Descriptive and inferential statistics were used to analyze the data. The double hurdle model was used in the study to measure the adoption and performance of zero grazing dairy technology. Institutional factors that had significant (p-value 0.000< 0.05) influence on adoption of zero-grazing dairy technology were access to extension services, frequency of extension officer’s visits, group membership and distance to nearest market. In conclusion access to extension services, frequency of extension officer’s visits, group membership and distance to nearest market influenced adoption of zero grazing farming technology in Bondo sub County. Platforms for farmers’ training should be enhanced through employment of more extension workers. The institutions supporting dairy farming should be strengthened.

scholarly journals FACTORS INFLUENCING CREDIT ACCESS FOR FIRMS IN THE BIOGAS SUB SECTOR IN KENYA

2017 ◽  
Vol 2 (3) ◽  
pp. 1
Author(s):  
Bernard Mulandi ◽  
Dr. Sifunjo Kisaka
Keyword(s):  
Social Sciences ◽  
Sampling Technique ◽  
Target Population ◽  
Loan Portfolio ◽  
Credit Access ◽  
Access To Credit ◽  
Qualitative And Quantitative ◽  
Factors Influencing ◽  
The Government ◽  
Descriptive Survey

Purpose: The purpose of this study was to determine the factors influencing credit access for firms in the biogas sub sector in Kenya.Methodology: The study adopted descriptive survey. The target population of the study was the firms in biogas sub sector in Kenya. A sample of 40 firms was selected from all the firms using the random sampling technique. Both qualitative and quantitative data was collected using a questionnaire that consisted of both open ended and close ended questions. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results presented in frequency tables to show how the responses for the various questions posed to the respondents. The data was then analyzed in terms of descriptive statistics like frequencies, means and percentages.Results: The study findings revealed that firms in biogas sub sector had low access to credit from the banks. It was also possible to conclude that age of firm, capital invested, size of the business, financial records, risk preference and access to information influence the level of access to credit by renewable energy sector firms.Policy recommendation: It is recommended that micro financing institutions should regulate the products and services they offer to SMEs so as to have all clients enclosed in their loan portfolio. The study further recommends that banks should work hand in hand with the government to support upcoming businesses and offer financial support.

scholarly journals THE CHOICE OF CLIMATE CHANGE ADAPTATION STRATEGIES PRACTICED BY CASSAVA-BASED FARMERS IN SOUTHERN NIGERIA

AGROFOR ◽  
2020 ◽  
Vol 5 (3) ◽  
Author(s):  
Adanna HENRI-UKOHA
Keyword(s):  
Climate Change ◽  
Climate Change Adaptation ◽  
Adaptation Strategies ◽  
Credit Access ◽  
Access To Credit ◽  
Pests And Diseases ◽  
Factors Influencing ◽  
Southern Nigeria ◽  
Climate Change Adaptation Strategies ◽  
Area Data

The study on choice of climate change adaptation strategies practiced by cassavabased farmers was conducted in Southern Nigeria. The following specific objectives were achieved: to ascertain the perceived effects of climate change in the study area and to determine factors influencing the choice of using climate change adaptation strategies by cassava-based farmers in the study area. Data were obtained through the administration of questionnaire to 300 randomly sampled cassava-based farmers in the study area. Data were analyzed using descriptive statistics such as mean, frequencies, percentages and inferential statistics such as Multinomial Logit Regression technique. The result revealed that farmers perceived increase in flood incidence (91.33%), drought (90.67%), high incidence of pests and diseases (55%) and low yield (50%) as the effects of climate change in the study area. Also, from the results, 58% of the farmers chose not to employ the use of climate change adaptation strategies while only 42% decided to choose using climate change adaptation options in the study area. The result also showed that age of the farmer, farming experience, gender, marital status, level of education, household size, access to credit, access to agricultural extension services and membership of association were the factors influencing the choice climate change adaptation strategies used by the farmers. The study concluded that socioeconomic attributes of the farmers affected their choice of climate change adaptation strategies. Policy should be targeted at designing climate change adaptation technology to farmers as well as providing the enabling environment that would encourage them to employ it.

scholarly journals Gender Disparity Among Cooperative Farmers in Accessing Agricultural Credits in Anambra State, Nigeria

2019 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Helen O. Nduka ◽  
Uche R. Ezeokafor ◽  
Gabriel E. Ekwere ◽  
Ikechukwu E. Ngoka
Keyword(s):  
Regression Models ◽  
Agricultural Development ◽  
Gender Disparity ◽  
Agricultural Credit ◽  
Credit Access ◽  
Anambra State ◽  
Access To Credit ◽  
Males And Females ◽  
And Gender ◽  
Set Up

Women have been the focus of gender disparity and this has been widely referred to the disparity faced by women in the field of agriculture. Agricultural credit is imperative for sustainable agricultural development in any country of the world. In order to substantiate the assertion, this study evaluated the issues of gender disparity in farmers’ access to agricultural credit among cooperative societies in Anambra north zone of Anambra State. Specific objectives were to ascertain the quantum of credit obtained and repaid by female and male members; determine the effect of gender on the quantum of credit obtained and repaid; ascertain critical factors influencing access to credit by cooperative members; determine how gender contributed to credit repayment behaviour of cooperative members and examine perception of members on gender-related issues in credit operations. ANOVA and regression models were used to test hypotheses 1-5. Findings revealed that male members obtained more credit than female members, and female members repay more than their male counterparts. Gender was not a significant determinant of credit obtained and repaid by cooperative members and gender issues in credit operation were handled among cooperative members. However, the researcher recommended that the issues of gender inequality should not be encouraged. Both males and females should have equal access to credit and repayment of credit operation; despite the membership strength, more members should be encouraged to join cooperative societies in order to access credit and repay accordingly and cooperative officers should set up friendly credit scheme to ensure a functional and effective credit access.

scholarly journals Adoption of improved processing technology among African locust bean processors in south-west, Nigeria

2020 ◽  
Vol 10 (1) ◽  
pp. 123-128
Author(s):  
A Kolapo ◽  
OE Omopariola ◽  
AO Adeoye ◽  
AJ Kolapo
Keyword(s):  
Sampling Procedure ◽  
Processing Technology ◽  
Institutional Factors ◽  
Hurdle Model ◽  
Access To Credit ◽  
Double Hurdle Model ◽  
South West ◽  
Multi Stage ◽  
Locust Bean ◽  
Double Hurdle

The paper investigated the effect of socio-economic and institutional factors on the adoption of improved locust bean processing technology in South-West, Nigeria. Specifically, the study described the socio-economic characteristics of the locust bean processors, examines the level of awareness and adoption of the improved locust bean processing technology in the study area and determines the effect of socio-economic and institutional factors on the adoption and intensity of use of improved locust bean processing technology in the study area. A multi-stage sampling procedure was used to select 360 respondents used for the study. The data were analyzed using descriptive statistics and the Cragg’s (double-hurdle) model. The result of the study showed that majority (84%) of the locust bean processors were female with an average age of 48 (±11.36) years. Majority (97%) of the respondents were married with an average household size of 8.25 (±4.32) persons. The result showed that 44.2% were aware while 55.8% were not aware of the technology in the study area. The results from the Cragg’s double hurdle model show that in the first hurdle, age, experience, access to credit and awareness positively influenced the decision to adopt the improved locust bean processing technology while in the second hurdle, education and income positively influenced the intensity of the use of the improved locust bean processing technology. It is therefore recommended that Relevant stakeholders, agencies and government should made available credit facilities which will enable the locust bean processors acquired the technology in no distant time. Int. J. Agril. Res. Innov. Tech. 10(1): 123-128, June 2020

scholarly journals Determinants of Common Bean (Phaseolus Vulagris L.) Marketed Surplus Among Smallholder Farmers in Humbo and Damot Gale Woredas, Southern Ethiopia

2018 ◽  
Vol 2 (1) ◽  
pp. 20
Author(s):  
Besufekad Belayneh ◽  
Tewodros Tefera ◽  
Thomas Lemma
Keyword(s):  
Common Bean ◽  
Smallholder Farmers ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Least Square ◽  
Primary Data ◽  
Southern Ethiopia ◽  
Cross Sectional ◽  
Ordinary Least Square ◽  
Multi Stage

This research was aimed to study the common bean (Phaseolus vulagris L.) marketed surplus among smallholder farmers in the Humbo and Damot Gale Woredas. A multi-stage sampling technique was used in order to determine the sample respondents. By using simple random sampling technique four sample Kebeles were selected. Cross sectional data were collected from 182 farm households who produced common bean in 2016 production season. Primary data were collected from sample households using structured questionnaire. Descriptive statistics and econometric model were employed to analyze the data. To identify determinants of marketed surplus of common bean, Ordinary Least Square (OLS) model was employed. The study suggest interventions such as intensification strategies which increase yields through proper management and use of inputs, rural infrastructure improvement increases the likelihood of market orientation and marketed surplus of common bean.

scholarly journals INFLUENCE OF FINANCIAL LINKAGES ON GROWTH OF INFORMAL FINANCIAL INSTITUTIONS IN HOMA BAY COUNTY OF KENYA

2020 ◽  
pp. 19-27
Author(s):  
Benard Odhiambo Obop ◽  
Alphonce Juma Odondo ◽  
Nelson Obange
Keyword(s):  
Developing Countries ◽  
Information Sharing ◽  
Financial Institutions ◽  
Financial Training ◽  
Negative Relationship ◽  
Secondary Data ◽  
Sampling Technique ◽  
Primary Data ◽  
Credit Access ◽  
Access To Credit

Financial linkage is an emerging form of partnership widely practiced between NGOs, formal and informal financial institutions in developing countries. The existing forms include but not limited to financial training, Savings products and Credit Information Sharing (CIS). Informal financial institutions enter into such linkages with an aim of growing the volumes of credit accessed. In Homa Bay County, various forms of financial linkages have emerged with statistics indicating unstable growth in volumes of credit accessed by informal financial institutions. According to Homa bay Women Sacco, the loan disbursed grew by 88.46% between 2015 and 2017. This is in tandem with the institutional theory of complementarity adopted by this study. However, studies on formal-informal financial institutions’ relationship and contribution of financial linkages to credit access in developing countries have elicited divergent views. Some reveal that financial linkages offer the best solution to promoting credit access while others indicate that the linkages may reduce access to credit and impact negatively on growth of the institutions. It is on this basis that the study sought to establish the influence of the emerging linkages on growth of informal financial institutions in Homa Bay County. The study was based on the positivists approach to conceptualization and was guided by correlational research design. A total of 300 respondents were selected using stratified sampling technique. Both open and closed-ended pre-tested questionnaires were used to collect primary data. Secondary data were from relevant documents of the institutions. The desired relationships were established through multiple regressions while bivariate associations were determined using Correlational analysis. The study revealed that volumes of group savings and Credit information sharing both had significant relationships with the growth of informal financial institutions. On the other hand, financial training had an insignificant negative relationship with access to credit by the institutions, the negative relationship suggests that through training, the informal financial institution’s managers strengthen their internal management mechanisms, thus become less dependent on borrowed funds for their activities. The study thus recommends that the three forms of linkages be strengthened to enhance growth of the institutions in Homa Bay County. KEY WORDS: Financial Linkages, Growth, Institutions, County, Kenya

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