scholarly journals Determinants of agriculture credit fungibility among smallholder farmers: The case of rural Ghana

2021 ◽  
Vol 48 (1) ◽  
pp. 1-13
Author(s):  
Kwabena Nkansah Darfor ◽  
◽  
Martinson Ankrah Twumasi ◽  
Selorm Akaba ◽  
Michael Kwamega ◽  
...  
Keyword(s):  
Smallholder Farmers ◽  
Financial Burden ◽  
Probit Model ◽  
Policy Implications ◽  
Farm Size ◽  
Farm Income ◽  
Variable Approach ◽  
Male Farmer ◽  
Positive Effect ◽  
Instrumental Variable Approach

This study examined the determinants of rural household agriculture credit fungibility (CF). The study found agricultural CF among farmers, with approximately 79% of farmers involved in agricultural CF. Household financial burden was found to be the main cause of CF among the studied farmers. Most fungible credit was used for clothing and food consumption. A probit model was employed to analyze survey data collected from four regions in Ghana. We employed an instrumental variable approach (IV-Probit) to test for robustness due to endogeneity issues. The econometric model results show that the variables of off-farm income and farm size inversely influenced agricultural CF, while those of education, household size, male farmer gender, and chronic disease variables had a positive effect on agricultural CF. Our findings have policy implications for alleviating agricultural CF.

Can Organic Agriculture Feed the Smallholders? Experience from Rural Bangladesh

2021 ◽  
Vol 31 (1) ◽  
pp. 91-107
Author(s):  
M. A. Sarker ◽  
M. Hoque ◽  
A. H. Chowdhury ◽  
Z. Ferdous
Keyword(s):  
Food Security ◽  
Organic Agriculture ◽  
Smallholder Farmers ◽  
Farm Size ◽  
Household Food Security ◽  
Farm Income ◽  
Base Line ◽  
Project Staff ◽  
Household Food ◽  
Safe Food

This study empirically tests the benefit of the smallholders from organic farming in Bangladesh through their improved food security which is realised from their increased productivity and farm income. The respondent smallholders were picked up from two districts of Bangladesh namely Mymensingh and Bogra. The respondents (80) were the beneficiaries of the organic agriculture promotion project of Bangladesh Agricultural University. Three years data were collected by the project staff and were crosschecked with the base line. Findings of the study explored that before joining with the project extreme majority (93%) of the small farmers were involved in rice mono-culture and more than half (67%) of them were food deficit. The study also revealed that at the initial year of joining organic agriculture project their farm productivity was 10–12% lesser and it increased continually in the successive years. In some cases, it crossed the yield compared to conventional farming. The findings of the study showed that 100% of the farmers have followed crop diversification with high value vegetables and spices along with rice. Due to adoption of organic practices, the cost of production of the smallholders has declined from 27% to 36% and additionally they enjoy 10% to 15% premium prices which have enhanced their farm income significantly. The study shows that 62.5% of the smallholder farmers had attained household food security due to adoption of organic agriculture. Thus, adoption of organic agriculture effectively increased smallholders’ access to surplus safe food. However, the study also explored that farm size, extension media contact, access to assured market and access to institutional support are the most important factors in improving smallholders’ household food security through participation in organic agriculture programme. Thus, it can be concluded that organic agriculture can feed the smallholders in a better way.

scholarly journals Determinants of Market Outlet Choices by Smallholder Chickpea Farmers in Estie District Amhara Region, Ethiopia

2021 ◽  
Author(s):  
Chernet Worku Erkie ◽  
Marlign Adugna ◽  
Essa Chanie
Keyword(s):  
Smallholder Farmers ◽  
Joint Probability ◽  
Probit Model ◽  
Sampling Procedure ◽  
Multivariate Probit ◽  
Primary Data ◽  
Farm Income ◽  
Cash Income ◽  
Multivariate Probit Model ◽  
Market Channel

Abstract In Ethiopia, chickpea is an important plus crop, particularly in Estie district. It is a source of food and provides cash income for majority of smallholder farmers. To commercialize chickpea producers, selecting an appropriate market channel is mandatory. However, selecting an appropriate market channel is not an easy task because there are different factors that affect market outlet choices in the district. Hence, this study aimed to identify factors that affecting chickpea market outlet choices. Both primary & secondary sources of data were used. A two-stage random sampling procedure was used and a total of 122 smallholder farmers were randomly and proportionally selected to collect primary data. Multivariate probit model was employed to identify factors affecting chickpea market outlet choices. The result shows that five major chickpea marketing channels were identified and among them wholesalers and retailers purchased about (61.84%) and (18.2%) respectively. The estimation result of multivariate probit model showed that the likelihood of sampled households to select collectors, consumers, retailers and wholesalers were 25.3%, 35.4%, 30.5% and 36%, respectively. The joint probability of success and failure to select all market outlets was 0.01537% and 13.4% respectively. It also indicated that sex of household, education status, family size, off-farm income, access to credit; lagged price and distance to market significantly affected the market channel choice decision of producers. Based on the findings, Government and concerned stakeholders need to focus more on enhancing accessibility of infrastructures facilities, strengthening credit access and improving yield through extension service to accelerate selecting appropriate market channel.

scholarly journals Efficiency of small scale vegetable farms: policy implications for the rural poverty reduction in Nepal

2016 ◽  
Vol 62 (No. 4) ◽  
pp. 181-195 ◽  
Author(s):  
R.B. Shrestha ◽  
W.-Ch. Huang ◽  
S. Gautam ◽  
T.G. Johnson
Keyword(s):  
Support Services ◽  
Poverty Reduction ◽  
Production Efficiency ◽  
Smallholder Farmers ◽  
Rural Poverty ◽  
Policy Implications ◽  
Farm Income ◽  
Small Scale ◽  
Vegetable Production ◽  
Parametric Data

Poverty and hunger reduction are intertwined challenges and enduring issues in the world, particularly in developing countries. Improvement in the efficiency in vegetable farming helps the farmers increase the per capita income, reduce poverty and eventually improve the livelihood of smallholder farmers. This paper evaluates economic efficiency of vegetable farms in Nepal using a non-parametric data envelopment analysis (DEA) approach. The results show evidence to suggest that vegetable farms in Nepal have a considerable potential for improving the vegetable production efficiency with a greater access to improved seed, agricultural credit, and training and extension services. Some policies options with regard to the vegetable production technology, and support services for farmers in general and women farmers in particular, are suggested to increase the farm efficiency. While some of these support services are currently available, we suggest that a more focus be given to creating the improved market access, to the women focused extension, and to training packages for the sustainable production. These support services can lead to increases in the farm income and to reduce poverty.

The ripple effect of credit accessibility on the technical efficiency of maize farmers in Ghana

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anthony Siaw ◽  
Yuansheng Jiang ◽  
Martinson Ankrah Twumasi ◽  
Wonder Agbenyo ◽  
Gideon Ntim-Amo ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Farm Size ◽  
Farm Income ◽  
Agricultural Credit ◽  
Maize Production ◽  
Content Type ◽  
Frontier Analysis ◽  
Access To Credit ◽  
Variable Approach ◽  
The Impact

PurposeThe purpose of this study is to examine the impact of access to credit on technical efficiency (TE) of maize farmers in a developing country, Ghana.Design/methodology/approachThe study employed an instrumental variable approach and the stochastic frontier analysis (SFA) method for the estimation of the results.FindingsThe study found that farmers who have access to agricultural credit stand the chance of increasing TE by a margin of 8%, which also influences the maize production than those who did not have access to credit. The average TE score of the farmers was 74%. The study also found out that factors like membership, gender, farmers' access to credit, age and social network determine farmers' possibility of accessing agricultural credit. The study finds out that returns to size are increasing among the maize farmers and that significant improvement in efficiency can be realized by increasing the level of input used in production. Also, factors such as farm size, labor, seeds and fertilizer are the essential determinants of maize production output. Also, gender, extension, age, off-farm income, access to credit and membership were significant factors influencing technical inefficiency (TI).Originality/valueThe paper contributes to the existing literature on agricultural credit on rural agricultural development. The problem of endogeneity associated with access to credit, which has been considered by other researchers, is dealt with this study. This paper also provides information to government policymakers, practitioners and all other stakeholders in the maize sub-sectors and also will benefit small farmers outside the study area.

scholarly journals Economics of Groundwater Irrigation in Nepal: Some Farm-Level Evidences

2006 ◽  
Vol 38 (1) ◽  
pp. 185-199 ◽  
Author(s):  
Humnath Bhandari ◽  
Sushil Pandey
Keyword(s):  
Rice Yield ◽  
Probit Model ◽  
Farm Size ◽  
Policy Reforms ◽  
Farm Level ◽  
Access To Credit ◽  
Groundwater Irrigation ◽  
Level Data ◽  
Credit Programs ◽  
Positive Effect

This article examines the economics of groundwater irrigation and shallow tubewell (STW) ownership decision making, using farm-level data collected from 324 households in Nepal. STW irrigation generated a significant positive effect on rice yield and farmers' incomes. Based on a probit model, the farm size, land fragmentation, access to electricity, and access to credit were found to significantly influence farmers' decisions to own STWs. Although the water market benefited poor farmers, it is too small and monopolistic. Policy reforms needed to make groundwater accessible to the poor majority include effective credit programs, investments in rural electrification, and public sector support for promoting suitable pumping technologies.

scholarly journals Determinants of Smallholder Farmers’ Choice of Climate Smart Agriculture Practices to Adapt to Climate Change in Masaba South Sub-County, Kisii, Kenya

2020 ◽  
pp. 29-41
Author(s):  
Jared O. Nyang’au ◽  
Jema H. Mohamed ◽  
Nelson Mango ◽  
Clifton Makate ◽  
Alex N. Wangeci ◽  
...  
Keyword(s):  
Climate Change ◽  
Crop Production ◽  
Smallholder Farmers ◽  
Probit Model ◽  
Positive Influence ◽  
Farm Income ◽  
Climate Information ◽  
Extension Services ◽  
Change Perception ◽  
Climate Change Perception

Aims: This study evaluated determinants that influence choice of Climate-Smart Agricultural (CSA) practices among smallholder farmers in Masaba South sub-county, Kisii, Kenya. Study Design: This study used a multivariate probit model to evaluate determinants that influence farmers’ choice of CSA practices. Place and Duration of Study: Masaba South sub-county, Kisii, Kenya between the second week of April 2019 and the last week of May 2019. Methodology: Quantitative and qualitative data were collected using a semi-structured questionnaire from 196 households, 3 focused group discussions and 7 key informant interviews. Information such as socio-economic, land ownership, climate change perception, crop production practices and institutional characteristics were collected from the households. Results: The results showed that crop diversification, change of crop varieties and crop rotation and/or mixed cropping are the dominant adaptation strategies in the study area. Access to credit, farm income, climate change perception and household size have a significant positive influence on adoption of most CSA practices. Small-sized farms, lack of access to extension services, level of education and inaccessibility to weather and climate information were major barriers influencing adoption of CSA practices. Conclusion: To reduce vulnerability of smallholder farmers to impacts of climate variability and change, the study recommends the need to enhance increased access to extension services and timely dissemination of climate information to farmers in the form they can easily understand and decode.

scholarly journals Determinants of Market Outlet Choices by Smallholder Chickpea Farmers in Estie District Amhara Region, Ethiopia

2020 ◽  
Author(s):  
Chernet Worku Erkie ◽  
Marlign Adugna ◽  
Essa Chanie
Keyword(s):  
Smallholder Farmers ◽  
Joint Probability ◽  
Probit Model ◽  
Sampling Procedure ◽  
Multivariate Probit ◽  
Primary Data ◽  
Farm Income ◽  
Cash Income ◽  
Multivariate Probit Model ◽  
Market Channel

Abstract In Ethiopia, chickpea is an important plus crop, particularly in Estie district. It is a source of food and provides cash income for majority of smallholder farmers. To commercialize chickpea producers, selecting an appropriate market channel is mandatory. However, selecting an appropriate market channel is not an easy task because there are different factors that affect market outlet choices in the district. Hence, this study aimed to identify factors that affecting chickpea market outlet choices. Both primary & secondary sources of data were used. A two-stage random sampling procedure was used and a total of 122 smallholder farmers were randomly and proportionally selected to collect primary data. Multivariate probit model was employed to identify factors affecting chickpea market outlet choices. The result shows that five major chickpea marketing channels were identified and among them wholesalers and retailers purchased about (61.84%) and (18.2%) respectively. The estimation result of multivariate probit model showed that the likelihood of sampled households to select collectors, consumers, retailers and wholesalers were 25.3%, 35.4%, 30.5% and 36%, respectively. The joint probability of success and failure to select all market outlets was 0.01537% and 13.4% respectively. It also indicated that sex of household, education status, family size, off-farm income, access to credit; lagged price and distance to market significantly affected the market channel choice decision of producers. Based on the findings, Government and concerned stakeholders need to focus more on enhancing accessibility of infrastructures facilities, strengthening credit access and improving yield through extension service to accelerate selecting appropriate market channel.

scholarly journals Determinants of Small-Scale Mechanization for Potato Farming: A Case from Bangladesh

2021 ◽  
Vol 7 ◽  
pp. 75-82
Author(s):  
Moniruzzaman ◽  
Md. Sadique Rahman ◽  
Md. Hayder Khan Sujan
Keyword(s):  
Probit Model ◽  
Policy Implications ◽  
Farm Size ◽  
Small Scale ◽  
Marginal Effect ◽  
Public Agencies ◽  
Effect Analysis ◽  
Farm Mechanization ◽  
And Training ◽  
Potato Farm

Identifying the determinants of farm mechanization can play a crucial role in the agriculture sector’s development. The present study identifies the determinants of potato farm mechanization employing the ordered probit model. A total of 150 potato farmers were interviewed to achieve the objectives. The findings indicate that only around 13% of the respondents were high adopters. The adoption of potato farm mechanization was influenced by education, spouse education, farm size, and training. Marginal effect analysis suggested that farm size and training decrease the likelihood of being in the low adopter’s category, respectively, by 13.2% and 10%, while increases the likelihood of being in the high adopter’s category by 7.5% and 5.7%. Policy implications included more investment in extension facilities such as training from public agencies to sustain and increase adoption. Modifying the existing extension strategy by targeting not only primary farmers but also members of their families would help with the widespread adoption of farm mechanization.

scholarly journals Determinants of Participation Decision in Cassava Marketing by Smallholder Farmers in Taita-Taveta and Kilifi Counties, Kenya

2019 ◽  
Vol 11 (17) ◽  
pp. 98
Author(s):  
Amos Nyangira Tirra ◽  
Willis Oluoch-Kosura ◽  
Hillary Nyanganga ◽  
Agnes W. Mwang’ombe
Keyword(s):  
Significant Influence ◽  
Value Chain ◽  
Smallholder Farmers ◽  
Probit Model ◽  
Farm Size ◽  
Market Participation ◽  
Participation Decision ◽  
Drought Tolerant ◽  
Binary Probit Model ◽  
Binary Probit

Cassava is an important food crop with high production potential in different agroecological zones across the world. Cassava is also a drought tolerant crop performing well in arid and semi-arid areas. Cassava has a great potential as both a food security and industrial crop. In addition, as a drought tolerant crop, it is fits very well as a climate smart crop in the face of climate change. However, the cassava industry and value chain in Kenya is still underdeveloped and therefore there are many cassava marketing opportunities that are yet to be exploited. This study analyses factors that influence smallholder farmers’ decision to participate in cassava marketing in Taita-Taveta and Kilifi Counties in Kenya. Data was collected using semi-structured questionnaires from a sample of 250 smallholder cassava farmers. Descriptive statistics were used to analyse the socio-economic characteristics of respondents while a binary Probit model was used to analyse the socio-economic factors that influence farmers’ participation decision in cassava marketing. The results of the binary Probit model show that, sex of the head of a household, access to extension services, price of cassava products and quantity harvested had a positive and significant influence on market participation decision while years of schooling, household size and farm size had a negative and significant influence on the market participation decision. Therefore, based on the findings, the study recommended policy interventions targeting organization and coordination of the cassava marketing system and provision of appropriate incentives to farmers to enhance market participation.

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