The role of credit in the sustainability of agricultural extension services: the case of Uluguru mountains agricultural development project
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Date
2007
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Publisher
Sokoine University of Agriculture
Abstract
The lack of sustainability of adopted agricultural extension innovations by smallholder
farmers has been caused partly by lack of capital. Rural banks initiated by the Uluguru
Mountains Agricultural Development Project (UMADEP) have been important source of
credit in rural areas to improve smallholder farmer's productivity. The study investigates
the role of credit in the sustainability of agricultural extension services in the Uluguru
Mountains. Four Rural Banks in two Districts, namely, Morogoro and Mvomero districts
in Morogoro Region were selected. The study consisted of smallholder farmers who under
UMADEP project, included those who received, not received credit from Rural Banks.
Ward Extension Officers, Village Executive Officers, UMADEP staff, and Rural Bank
staff were the key informants. A questionnaire and interview schedule were used in data
collection. The study revealed that 89% of the respondents were aware of the innovations
disseminated by the project. The innovations adopted included new agronomic practices,
use of terraces for conservation of water and soil fertility. The respondents also adopted
new goat and pig breeds and crossed with their respective local breeds to improve their
performance. Housing, vaccination and treatment of the domestic animals were promoted.
Age, marital status, family size, land ownership, and land size were the most important
socio-economic factors associated with rural bank credit access in both Districts. The study
found that the credit resulted in a significant at 1%, (p = 0.001) increase in number and
value of dairy goats, pigs and fruits, hence the annual income of the household. Credit
enables the farmers to increase the use of new innovations and hired labour for their farm
activities According to the results, 88% of the respondents will continue with the adopted
technologies, and few (6%) said they still needed UMADEP assistance.
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Keywords
Rural banks, Agricultural credit services, Smallholder farmers-rural