scholarly journals Factors Affecting Loan Repayment Rate from ACSI among Smallholder Farmers: In the case of Habru District, Eastern Amara Regional State, Ethiopia

2021 ◽  
Author(s):  
Andualem Kassegn ◽  
Ebrahim Endris
Keyword(s):  
Smallholder Farmers ◽  
Secondary Data ◽  
Farm Income ◽  
Loan Repayment ◽  
Factors Affecting ◽  
Explanatory Variables ◽  
Multi Stage ◽  
Land Size ◽  
Small Holder ◽  
Road Distance

Abstract This paper aims to examine factors affecting loan repayment rate from Amhara Credit and Saving Institutions (ACSI) among smallholder farmers in Habru district, Ethiopia. In this study, both primary and secondary data sources were used. The study employed a combination of multi-stage purposive and stratified sampling techniques in the selection of 384 borrowers from small-holder farmers in the study area. The Tobit model result found that a total of 10 out of the total 15 explanatory variables involved in the model were found to be statistically significant. According to the result demographic factors (age and household size), socio-economic factors (educational level, land size, livestock size, non-farm income, purpose of borrowing), and institutional factors (road distance, contact with development agents, training received on loan use) were among the factors that influenced loan repayment rate of small-holder borrowers in the study area. Education level, land size, livestock size in TLU, non-farm income, purpose of borrowing, contact with agricultural extension agents, and training received on loan use were found to determine loan repayment rate of borrowers positively and significantly, while age, family size, and road distance were found negatively and significantly determine loan repayment rate in the study area. Therefore, the overall result of this study underlined the great importance of the significant factors to profoundly achieve high repayment rate on borrowed funds from ACSI in the study area.

Factors affecting loan repayment rate among smallholder farmers got loans from the Amhara Credit and Saving Institution: In the case of Habru District, Amhara Regional State, Ethiopia

2021 ◽  
pp. 223386592110409
Author(s):  
Andualem Kassegn ◽  
Ebrahim Endris
Keyword(s):  
Smallholder Farmers ◽  
Loan Repayment ◽  
Factors Affecting ◽  
Explanatory Variables ◽  
Secondary Sources ◽  
Multi Stage ◽  
Nonfarm Income ◽  
Development Agents ◽  
Land Size ◽  
Road Distance

The aim of this paper was to examine factors affecting loan repayment rate among smallholder farmers in the Habru District, Ethiopia, who had taken loans from the Amhara Credit and Saving Institution. In this study, both primary and secondary sources were used. The study employed a combination of multi-stage purposive and stratified sampling techniques in the selection of 384 borrowers from smallholder farmers in the study area. The Tobit model result found that a total of 10 out of the total 15 explanatory variables involved in the model were found to be statistically significant. According to the result demographic factors (age and household size), socio-economic factors (educational level, land size, livestock size, nonfarm income, purpose of borrowing), and institutional factors (road distance, contact with development agents, training received on loan use) were among the factors that influenced loan repayment rate of smallholder borrowers in the study area. Education level, land size, livestock size in tropical livestock unit, nonfarm income, purpose of borrowing, contact with agricultural extension agents, and training received on loan use were found to determine loan repayment rate of borrowers positively and significantly, while age, family size, and road distance were found to negatively and significantly determine loan repayment rate in the study area. Therefore, the overall results of this study underlined the great importance of the significant factors to profoundly achieve high repayment rate on borrowed funds from the Amhara Credit and Saving Institution in the studied area.

scholarly journals Determinants of Loan Repayment among Small Holder Cooperative Farmers in Remo Division, Ogun State, Nigeria

2015 ◽  
Vol 8 (1) ◽  
pp. 92
Author(s):  
S. U. Isitor ◽  
A. O. Otunaiya ◽  
A. G. Adeyonu ◽  
E. F. Fabiyi
Keyword(s):  
Smallholder Farmers ◽  
Descriptive Analysis ◽  
Primary Data ◽  
Farm Income ◽  
Probit Regression ◽  
Loan Repayment ◽  
Level Of Education ◽  
Ogun State ◽  
Loan Size ◽  
Small Holder

<p>This study investigated the factors that are crucial in improving small holder cooperative farmers’ loan repayment in Remo Division of Ogun state, Nigeria. Primary data used for the study were collected with the aid of well-structured questionnaire. Multi-stage sampling techniques were used to select the 120 respondents. The data were analyzed using descriptive statistics and probit regression model. The results of the descriptive analysis showed that about 56% of the respondents were able to repay their loans promptly while the rest were not. The respondents’ mean age stood at 47 years, the majority of them are males and married with fair level of education. The majority of smallholder farmers in the study area had been farming for more than 20 years, while the household size for the majority of them was 4-6 members with average family size of 5. The results of the probit regression analysis revealed that age, level of education, farming experience, net farm income and loan size obtained were the major factors that increase the likelihood of loan repayment, while the number of family dependants reduces the probability of repayment. To improve loan repayment ability in the study area, this study recommended improvement in human capacity development as well as sensitization of the farmers in the study area about the importance of education.</p>

scholarly journals Potato Market Participation and Its Extents Evidence from Southwest Ethiopia: A Double Hurdle Approach

2021 ◽  
Vol 7 (1) ◽  
pp. 53-63
Author(s):  
Abduselam Faris Abadega
Keyword(s):  
Sex Education ◽  
Smallholder Farmers ◽  
Total Sample ◽  
Farm Income ◽  
Market Participation ◽  
Potato Market ◽  
Factors Affecting ◽  
Econometric Methods ◽  
Double Hurdle ◽  
Land Size

Potato is an important commodity for livelihood in many parts of Ethiopia. Potato producers in Ethiopia face sophisticated marketing challenges, including inadequate access to market and low amount of marketed surpluses due to subsistence-oriented production of potato. The study aimed to identify factors that determine the market participation and its extents. About 136 potato producers were selected randomly from peasant association found in Dedo Districts of Ethiopia. Quantitative and qualitative data were collected from primary sources. Descriptive and econometric methods of data analysis were used to analyze data from the survey. A double hurdle model was applied to investigate factors affecting market participation and its extents. Results of descriptive statistics revealed that out of the total sample producer, 87.5 % of sample household has participated in the potato market. Age, sex, education, land size allocated for potato, and non-farm income were significantly influencing potato market participation. Age, sex, education (years of schooling), non-farm income, active labor and land allocated for potato influenced smallholder farmers level of market participation.

scholarly journals Determinants of Inorganic Fertilizer Use Intensity on Cereal Crop among Smallholder Farmers: The Case of Toke Kutaye District, West Shewa Zone, Oromia National Regional State, Ethiopia

2022 ◽  
Author(s):  
Aman Dassa ◽  
Abera Ifa ◽  
Efa Gobena
Keyword(s):  
Inorganic Fertilizer ◽  
Farm Income ◽  
Hurdle Model ◽  
Cereal Crop ◽  
Fertilizer Use ◽  
Explanatory Variables ◽  
Double Hurdle Model ◽  
Small Holders ◽  
Double Hurdle ◽  
Land Size

Abstract The study was aimed to analysis determinants of inorganic fertilizer use intensity on cereal crops among small holders in Toke Kutaye District, West Shewa Zone, Ethiopia. Correctional data were collected from 156 respondents using two stage random sampling methods. Data analyses were carried out using descriptive statistics and Double hurdle model. Result of the first hurdle reveals that out of twelve explanatory variables Sex ,Education, Off/non-farm income, Land size and Improved seed were determine positively whereas Age and Distance from nearest market determine small holders use of inorganic fertilizer negatively. The result of second stage of double hurdle model indicate that, out of twelve explanatory variables Sex, family size and Land size were positively affect extent (intensity) of inorganic fertilizer use whereas Age and Distance of household from nearest market determine use intensity negatively. Therefore, these results implied that there is a room to increase inorganic fertilizer use intensity on cereal crop productions. Hence, Farmers capacity to purchase this input beginning from lower income farmers to model farmers should be acknowledged; and should be designed the means to address those who have no ability to use inorganic fertilizer in their own farm through diverse development interventions.

scholarly journals The Factors Affecting Land Prices In Housing Location In Sidoarjo Regency

2017 ◽  
Vol 1 (1) ◽  
pp. 37-47
Author(s):  
Partomi Simangunsong ◽  
Arasy Alimudin ◽  
Muh. Barid Nizaruddin Wajdi
Keyword(s):  
Residential Location ◽  
Least Square ◽  
City Center ◽  
Sale Price ◽  
Factors Affecting ◽  
Explanatory Variables ◽  
Ordinary Least Square ◽  
Road Width ◽  
Log Linear ◽  
Road Distance

The need for residential location is one of the basic needs of the community and the attractiveness of the residential location is a unique feature where this feature is not made by the respective occupants, but by external factors from the residential environment in the area. This study aims to analyze the factors that are considered as the basis that affect the price of land. This research uses quantitative approach with associative research method. Linear analysis with quadratic method. Ordinary Least Square (OLS). From the analysis of this research model obtained log-linear F-accounting 70,162 while the value of F-table (0,05; 5,48) is 2,45. because F-count> F-table, Ho means rejected and explanatory variables include Distance to city center, Distance to main road, Distance to toll gate, Road width, and security simultaneously can be explained significantly at land sale price.

scholarly journals Production Efficiency of Sorghum: The Case of Smallholder Farmers in Kafta-Humera District Tigray Ethiopia

2021 ◽  
pp. 46-61
Author(s):  
Tewoderos Meleaku ◽  
Degye Goshu ◽  
Bosena Tegegne
Keyword(s):  
Production Efficiency ◽  
New Technologies ◽  
Smallholder Farmers ◽  
Allocative Efficiency ◽  
Sampling Technique ◽  
Farm Income ◽  
Stochastic Production Frontier ◽  
Resource Base ◽  
Factors Affecting ◽  
Sorghum Production

Efficiency is an important factor for increasing productivity which leads to increase market output to achieve the goal of food security. In economics where resources are scarce and opportunities to use new technologies are limited, increasing efficiency remains the most reasonable means to raise productivity without necessarily developing new technologies or increasing the resource base. So, this study aimed to investigate level of production efficiency, factors affecting production inefficiency of sorghum small holder farmers in Kafta-humera district of Tigray Ethiopia. A two stage sampling technique was used to select 289 sample farmers who were interviewed using a semi- structured questionnaire to obtain data pertaining to sorghum production during the year 2016/2017.Stochastic production frontier model was used to identify production efficiency levels, where as Tobit models was used to estimate factors affecting production efficiency levels. Accordingly, the mean technical, allocative and economic efficiencies were 78.01%, 65.21% and 39.91% respectively. This implies that output can be increased by 21.99% or cost can be reduced by 34.79% with the existing level of technology and resources. Input variables such as land, labor, tractor plow power, chemicals, DAP and Urea fertilizers positively affects production of sorghum. The discrepancy ratio (γ) implied that about 91.91% of the variation in sorghum production was attributed to technical inefficiency effects. Tobit model revealed that age, education, non-farm income, credit, extension service and training positively and significantly affected technical efficiency while age square and total livestock holding had negatively and significantly affected. Additionally, age square, education and frequency of farm visit positively and significantly affected allocative efficiency, while age, non-farm income, credit and extension contact have a negative and significant affect. Economic efficiency was positively and significantly affected by age, education, non-farm income, credit, extension contact and frequencies of farm visit but negatively affected by age square. These indicate that there is a room to increase in production efficiency of sorghum in the study area. Therefore, government authorities and other concerned bodies should take into consideration the above mentioned demographic, socioeconomic and institutional factors to increase efficiency of sorghum.

Factors Affecting Loan Repayment Performance of Microfinance Institution Borrowers

2019 ◽  
Vol 8 (2) ◽  
pp. 27-43
Author(s):  
Akalewold Fedilu Mohammed ◽  
Mesfin Hirpato Wobe
Keyword(s):  
Random Sampling ◽  
Quantitative Methods ◽  
Secondary Data ◽  
Sampling Technique ◽  
Loan Repayment ◽  
Factors Affecting ◽  
Qualitative And Quantitative ◽  
Qualitative And Quantitative Methods ◽  
Microfinance Institution ◽  
Major Factors

This study investigated the factors that affect the loan repayment performance of Omo Microfinance Institution borrowers at Wondo Genet Woreda, Ethiopia. Both primary and secondary data were used in the study. The required data were collected from 225 borrowers of Omo Microfinance. Respondents were selected by a stratified random sampling technique. Both qualitative and quantitative methods of analysis were used. The findings of the study revealed that 44.9% of borrowers in the study area did not repay the amount of money they borrowed as per credit schedules. The major factors that affect the loan repayment performance of borrowers were their sex, educational level, family size, borrowing experience, timelines of loan, repayment period and advisory visit.

scholarly journals Vulnerability of Smallholder Farmers to Climate Change-Induced Shocks in East Hararghe Zone, Ethiopia

2021 ◽  
Vol 13 (4) ◽  
pp. 2162
Author(s):  
Titay Zeleke ◽  
Fekadu Beyene ◽  
Temesgen Deressa ◽  
Jemal Yousuf ◽  
Temesgen Kebede
Keyword(s):  
Climate Change ◽  
Smallholder Farmers ◽  
Safety Net ◽  
Sampling Procedure ◽  
Farm Income ◽  
Access To Credit ◽  
Minimum Income ◽  
Household Level ◽  
Multi Stage ◽  
Vulnerability To Climate Change

Vulnerability assessment varies widely across households, countries, and regions. Though many previous studies assessed vulnerability to climate change, their unit of analysis was aggregate. Therefore, the objective of this study was to measure the vulnerability of smallholder farmers to climate change at the household level and identify its determinant factors in east Hararghe zone. A multi-stage sampling procedure was used to select districts, kebeles, and sample respondents. Vulnerability as expected poverty approach was used to measure household-level vulnerability. Logit model was also used to assess factors contributing to households’ vulnerability. The study revealed that 73% of households were vulnerable to climate-induced shocks. Households with better farm experience, land size, livestock ownership, access to credit, access to extension service, social capital, access to climate information, non-farm income, and headed by a male were not vulnerable to climate change; whereas households who were living in low and midland agro-ecologies, far from the market, and participating in productive safety-net programs were vulnerable to climate change. The study indicated that the vulnerability of smallholder farmers was sensitive to the minimum income required to maintain daily life. Income-generating activities that supplement farm income should be well designed in policy to reduce the vulnerability of smallholder farmers.

scholarly journals Willingness to pay for Rainfall based Insurance by Smallholder Farmers in Central Rift Valley of Ethiopia: The Case of Dugda and Mieso Woredas

2014 ◽  
Vol 1 (2) ◽  
pp. 117-152
Author(s):  
Hiwot Teshome Abebe ◽  
Ayalneh Bogale
Keyword(s):  
Willingness To Pay ◽  
Smallholder Farmers ◽  
Household Head ◽  
Insurance Premium ◽  
Tobit Model ◽  
Farm Income ◽  
The Mean ◽  
Income Variability ◽  
Risk Insurance ◽  
Small Holder

Current climate variability is already imposing significant challenge to Ethiopia. Therefore,  farmers  have  faced  income  variability  in  almost  every  production  season. Problems associated with dependence on rain fed agriculture are common in Ethiopia. Smallholder farmers’ vulnerability from such income variability is also common. Over the years, a range of risk management strategies have been used to reduce, or to assist farmers to absorb, some of these risks. Since insurance is potentially an important instrument to transfer part of the risk, this study try to describe the nature of weather related risks faced by smallholder farmers, assess small holder farmers willingness to pay for the rainfall risk insurance and examine factors that affect the maximum farmers are willing to pay for the rainfall risk insurance. The data was collected from 161 sample households from the two woredas of the study area using closed ended value elicitation format followed by open ended follow up questions. The study uses Logit model to estimate the mean willingness to pay in the close ended format in addition with Tobit model to examine factors that affecting small holder farmer willingness to pay as well as intensity of payment. The mean willingness to pay values are found to be 129.98 and 183.41 birr per hectare for the open and close ended formats respectively. The total willingness to pay for the study area was found to be birr 5,740,244 per year. The tobit model shows six potential explanatory variables affect the willingness to pay value. Income of household and ownership of radio have positive and significant effect on the value of willingness to pay, whereas off-farm income, age of household head, number of livestock owning and availability of public and private gifts have negative and significant effect on willingness to pay value. If the rainfall risk insurance premium is affordable and households have enough information about the service they are willing to pay for the service. Eventually policy makers need to be aware that socio-economic and institutional characteristics of households influence the willingness to pay for rainfall risk insurance services.

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