Agricultural Credit Accessibility Determinants: Evidence from Ghanaian Smallholder Farmers
Keywords:
Smallholder Farmer, Agricultural Credit, Binary Logistic ModelAbstract
Agricultural credit is an essential input along with modern technology for increased in farm productivity hence serves as an intervention to eradicate rural poverty and increase in agricultural growth. It is believed that smallholder farmers growth in farm production will depend on the availability of agricultural credit. The study assessed on the heterogeneous effect of the factors on the source of agricultural credit (formal and informal) and the gender composition. The study utilized the quantitative research design, a total of four hundred (400) participants were randomly sampled from 4 selected districts and municipalities in the Eastern region of Ghana (Asuogyaman, West-Akim, Suhum and Birim South). A statistical test like the binary logistics regression model was used to predict whether or not smallholder farmers’ access to agricultural credit in the formal and informal source of credit and the gender composition is influenced by the determinants considered for the study. According to the findings of this study, it can be concluded that a lot of factors influence the smallholder accessibility to agricultural credit.
The model showed a significant relationship between the determinant and accessibility of agricultural credit. This asserts that smallholder farmers’ accessibility of agricultural credit depends on these determinants for the purpose and the study area. The study, therefore, suggests that suppliers, borrowers and other interested stakeholders should be able to improve and intervene in the financial inclusion as well as that stakeholders in the agricultural industry such as MOFA, NGOs, FAO etcetera should include in their sensitization programs ways of enhancing farmers to adopt better farm management practices since they are variables influencing farmers used of agricultural credit.
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