ISSN: 2520-4750 (Online), 2521-3040 (Print)

Access to Bank Loans and Smallholder Farmers’ Paddy Productivity; A case of Mvomero District, Tanzania

 Author (s)

Faraja N. Mpeku & Justin K. Urassa

Abstract

Limited access to credit is one of the main limitations facing smallholders in Africa. Therefore, the study on which this paper is based, aimed at comparing smallholder farmers’ paddy productivity before and after their access to loans from formal financial institutions.  The study adopted a cross-sectional research design whereby data were collected once from 110 smallholder paddy farmers in Mvomero District using a questionnaire. In addition, key informant interviews and focus group discussions were conducted to enable triangulation. Quantitative data from the questionnaire were analyzed using SPSS whereby both descriptive and inferential statistics were determined. Study findings show that the paddy crop continues to play an essential role in the majority of households in the study area. Paddy productivity, on the other hand, was relatively low. The results from the linear regression show that loan size, age of household, farm size, the use of fertilizer and farming experience were significantly associated with paddy productivity. They further show that the major challenges faced by smallholder farmers in their access to bank loans were high-interest rates, loan inadequacy, and high collateral demand. The results of the paired sample t-test show that there is a difference in productivity before and after farmers accessed bank loans. Despite the importance of paddy farming to household livelihoods, it was reported that access to credit has a positive impact on the productivity of paddy farmers.

Keywords: Paired sampled t-test, Productivity, Smallholder farmers, Credit, Paddy.

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Title:Access to Bank Loans and Smallholder Farmers’ Paddy Productivity; A case of Mvomero District, Tanzania
Author:Faraja N. Mpeku & Justin K. Urassa
Journal Name:International Journal of Science and Business
Website:ijsab.com
ISSN:ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI:https://doi.org/10.5281/zenodo.6970513
Media:Online
Volume:15
Issue:1
Issue publication (Year):2022
Acceptance Date:01/08/2022
Date of Publication:07/08/2022
PDF URL:https://ijsab.com/wp-content/uploads/966.pdf
Free download:Available
Page:65-78
First Page:65
Last Page:78
Paper Type:Research paper
Current Status:Published

 

Cite This Article:

Faraja N. Mpeku & Justin K. Urassa (2022). Access to Bank Loans and Smallholder Farmers’ Paddy Productivity; A Case of Mvomero District, Tanzania. International Journal of Science and Business, 15(1), 65-78. doi: https://doi.org/ 10.5281/zenodo.6970513

Retrieved from https://ijsab.com/wp-content/uploads/966.pdf

About Author (s)

Faraja N. Mpeku (Corresponding author), Department of Policy Planning and Management, Sokoine University of Agriculture, P. O. Box 3035, Morogoro, Tanzania.

Justin K. Urassa, Department of Policy Planning and Management, Sokoine University of Agriculture, P. O. Box 3035, Morogoro, Tanzania.

 

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DOI: https://doi.org/10.5281/zenodo.6970513

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