Effectiveness of agricultural credit on paddy productivity in Kilombero district, Tanzania
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Date
2016
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Publisher
Sokoine University of Agriculture
Abstract
The study on which this dissertation is based was conducted to determine the effectiveness of agricultural credit on paddy productivity among smallholder farmers in Kilombero District, Morogoro Region. The study focused on the amount of credit provided to smallholder paddy farmers, improved agricultural inputs, and paddy productivity between credit receivers and non-credit receivers. It also assessed the impact of credit on paddy productivity. The data for this study were collected using a household questionnaire that was administered to a sample of 160 households, 80 of whom had received credit and 80 others who had not. MS Excel and Statistical Product and Services Solutions (SPSS) Version 20 were used to analyse the data. Multiple linear regression was used to establish the influence of credit and some other factors on paddy productivity. The average paddy yields for credit receiving farmers were higher (1641 kg/ha) compared to the yields of paddy from non-credit receivers (1288kg/ha). Credit receipt or otherwise influenced paddy yields negatively, but the influence was not significant (p > 0.05). Despite the non-
statistically significant influence of access to credit on paddy yield, credit for paddy production is very important for smallholder farmers to alleviate capital constraints. This was said by focus group participants. Furthermore, the results indicated that labour had a positive influence on paddy productivity which was statistically significant (0 = 0.170, P < 0.05); and improved seeds significantly influenced paddy productivity (0 = 0.414, P < 0.05). Fertilizers also significantly influenced paddy productivity (0 = 0.206, P < 0.05). Based on the findings of this study, it is concluded that receiving credit and using it with the above significant factors appropriately increase paddy productivity in Kilombero District. On the basis of the conclusion, it is recommended that agriculture stakeholders should strive to ensure that credit support facilities and/or agencies support smallholder farmers effectively. Further credit conditions, particularly availability, accessibility, and timeliness should be observed to enhance fanners’ access to agricultural
inputs timely.
Description
Dissertation
Keywords
Paddy productivity, Credit, Agricultural credit, Smallholder farmers