• editor.aipublications@gmail.com
  • Track Your Paper
  • Contact Us
  • ISSN: 2456-8635 (NAAS Rating: 3.43)

International Journal Of Horticulture, Agriculture And Food Science(IJHAF)

Determinants of Access to Agricultural Credit among Small holder Maize Farmers: The Case of Hababo Guduru District, Horro Guduru Wollega Zone, Ethiopia

Lemane Gebeyehu , Bezabih Emana , Fikadu Mitiku , Tadesse Tolera Ejeta

International Journal of Horticulture, Agriculture and Food science(IJHAF), Vol-3,Issue-3, May - June 2019, Pages 112-118, 10.22161/ijhaf.3.3.1

Download | Downloads : 8 | Total View : 1523


Access to agricultural credit remains a major challenge for smallholder farmers in Ethiopia. One of the reasons for very low agricultural productivity in developing countries and particularly in Ethiopia is that lack of access to agricultural credit. Hence, we intend to identify determinants of access to agricultural credit among smallholder maize farmers in Hababo Guduru District, Horro Guduru Wollega Zone, Ethiopia. The data were obtained from a total of 260 sample households, 120 who have access to credit and 140 who do not have access to credit via two stage random sampling technique. Descriptive statistics and probit model were used to analyze the data.The results of the probit model show that age, sex, education, number of livestock owned, year of membership for the credit institution, frequency of extension contact and distance from credit source were significant factors affecting farmers’ accessibility to agricultural credit in the study area. Therefore, government policy that intends to improve the smallholder farmer’s access to agricultural credit facilities should formulate well-functioning system of providing credit.

Agricultural credit, Smallholder, Maize Productivity, Ethiopia.

[1] Abdalla E. M., Ebaidalla, E. M., 2012. Determinants of small farmer’s access to formal credit institutions in Kassala state, East Sudan. University of Kassala Journal, First Issue, April 2012.
[2] Afolabi, O.I., Adegbite, D.A., Akinbode, S.O., Ashaolu, O.F., Shittu, A.M., 2014. Credit constraints: Its existence and determinants among poultry (Egg) farmers in Nigeria. British Journal of Economics, Management & Trade, 4(12): 1834-1848.
[3] Amentae, T.K., Hamo, T.K., Gebresenbet, G., Ljungberg, D., 2017. Exploring Wheat Value Chain Focusing on Market Performance, Post-Harvest loss, and Supply Chain Management in Ethiopia: The Case of Arsi to Finfinnee Market Chain. Journal of Agricultural Science, 9(8): 22–42.
[4] Awunyo-Vitor, D., Abankwah, V., 2012. Substitutes or complements: Formal and informal credit demand by maize farmers in Ashanti and BrongAhafo Regions of Ghana. International Journal of Agriculture and Forestry, 2(3): 105-112.
[5] Bolarinwa, K.K., Fakoya, E.O., 2011. Impact of farm credit on Farmers’ socio-economic status in Ogun State, Nigeria. Journal of Social Science, 26(1): 67-71.
[6] Elias, S., Ahmad, I. M., &Patil, B. L., 2015. The determinants of access to agricultural credit for small and marginal farmers’ in Dharwaddistrict,Karnataka, India, 3(5): 1–5.
[7] Gashayie, A., Singh, M.,2015. Agricultural finance constraints and innovative models experience for Ethiopia : Emprical Evidance from Developing Countries, 6(7), 39–50.
[8] Girma, M., Abebaw, D., 2015. Determinants of formal credit market participation by rural farm households: Micro-level evidence from Ethiopia. In Paper for presentation at the 13 th International Conference on the Ethiopian Economy. Ethiopian Economic Association (EEA) Conference Centre, Addis Ababa, Ethiopia.
[9] Meeme, B.M., 2013. Factors influencing access to formal credit by small scale women tea farmers in Kenya: A case of Thika district, Kiambu County (Doctoral dissertation, Masters Thesis. Nairobi University).
[10] Mpuga, P., 2004. Demand for credit in rural Uganda: Who cares for the peasants? In A paper presented at the conference on growth, poverty reduction and human development in Africa. Centre for the Studies of African Economies.
[11] Muhammed, M.A., 2013. Formal and informal credit demand by rice farmers in the Northern region of Ghana (Doctoral dissertation, University of Ghana).
[12] Nagler, J., 2002. Interpreting probit analysis. New York University, 2002.
[13] Ololade, R.A., Olagunju, F.I., 2013. Determinants of access to credit among rural farmers in Oyo State, Nigeria. Global Journal of Science Frontier Research Agriculture and Veterinary Sciences, 13(2): 23-31.
[14] Owusu-Antwi, G., Antwi, J., 2010. The analysis of the rural credit market in Ghana. The International Business & Economics Research Journal, 9(8): 45-56.
[15] Sebopetji, T. O., Belete, A., 2009. An application of probit analysis to factors affecting small-scale farmers ’decision to take credit: A case study of the greater Letaba Local Municipality in South Africa. African journal of agricultural research, 4(8): 718-723.
[16] Tang, S., Z. Guan, S. Jin., 2010. Formal and informal credit markets and rural credit demand in China. In agricultural & applied economics association, CAES, & WAEA Joint Annual Meeting: 1–26.