Access to credit and farmland abandonment nexus: The case of rural <scp>Ghana</scp>

Twumasi, Martinson Ankrah; Jiang, Yuansheng; Ntiamoah, Evans Brako; Akaba, Selorm; Darfor, Kwabena Nkansah; Boateng, Linda Kissiwa

doi:10.1111/1477-8947.12233

Cited by 11 publications

(3 citation statements)

References 59 publications

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“…The variables employed to specify the model are taken from the literature and take into account several assumptions. To investigate the determinants of credit access, many studies (Ankrah Twumasi et al, 2021;Baiyegunhi, 2008;Phan, 2012;Sossou et al, 2017) have used producers' socio-demographic characteristics, household characteristics, farm variables, financial structure variables as well as those of their products and other factors. Phan, (2012) and Julien et al, (2021) used individual characteristics (age, gender, education level, main occupation) and household characteristics (size, agricultural land size, land ownership) to determine factors that influence microcredit access.…”

Section: Definition Of Model Variablesmentioning

confidence: 99%

Analysis of rice farmers access to agricultural credit and profitability in South Togo

Agboklou¹,

Özkan²

2023

Pressacademia

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Purpose- Access to suitable production means is required for producers to improve their profitability. As a result, agricultural financing appears to be a critical tool for attaining this goal. Various programs and donors have been attempting for decades to put together initiatives that would make it easier for the most disadvantaged populations, including the primarily agricultural rural world, to access sources of financing. Due to poor performance, the majority of these programs have failed. This study aims to investigate the determinants of credit access and how loans affect rice farm profitability. Methodology - Data for this study were collected from 102 producers living in the two biggest paddy production zones in southern Togo. The treatment effect model was used to examine the data collected through the survey investigation. Findings- Gender, asset type, producer experience, access to credit information, primary occupation, and land ownership status of the producer are all factors in determining rice growers' access to credit. Gender, producer experience, access to credit information, and land ownership status all have a beneficial impact on credit availability. However, asset type and the producer's main occupation have a negative impact. It also demonstrates that whether rice farms have access to loans has little bearing on their profitability. On the other hand, the average treatment impact of credit access is statistically significant. It also shows that the farmer's degree of education, expertise in the field, and lastly, the size of rice field farmed are the most important elements affecting the profitability of rice fields. Conclusion- The findings have policy implications, increasing the channels for disseminating credible information about funding sources, access procedures and the institutions in charge of these funding sources. Integrating the enhancement of farmers' educational levels into rural support initiatives, and the extension of major agricultural landscaping works undertaken by the government to other areas suitable for rice cultivation. Keywords: Agricultural credit, rice production, Probit-2SLS model, Togo. JEL Codes: C26, D14, Q14

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Section: Definition Of Model Variablesmentioning

confidence: 99%

Analysis of rice farmers access to agricultural credit and profitability in South Togo

Agboklou¹,

Özkan²

2023

Pressacademia

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“…The study found that microfinance capital significantly influenced farmers' access to credit, with additional factors such as land ownership, gender, and literacy rate also playing a role. Previous research has identified household characteristics, asset ownership, regional characteristics, and socio-economic characteristics as variables that influence credit access, according to Sekyi (2017), Ankrah et al (2022), andLangat (2013). Furthermore, several models, including linear regression, binary logistic regression, probit model, or logit model, have been used to examine the impact of credit access on producers.…”

Section: Studies On Access To Creditmentioning

confidence: 99%

Exploring the relationship between willingness to participate in insurance and bank loan approval for coffee farmers in Dak Lak Province: A Bayesian Model Averaging approach

Le-Dinh

2023

JEECAR

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This study has employed Bayesian Model Averaging (BMA) to identify the most suitable model for assessing the eligibility of Vietnamese coffee farmers for bank loans, effectively avoiding overfitting and ensuring that only the most crucial variables were considered in the analysis. Findings from the study indicate that factors such as ethnicity, labor, yield, land ownership, and willingness to participate (WTP) in coffee insurance significantly influenced the farmers' eligibility for bank loans. Moreover, the study suggests that banks and insurance companies should also take into account additional factors, such as socio-economic context, household size and composition, land ownership, and risk-sharing programs, to enhance access to credit. With this valuable information, banks can forge partnerships with insurance companies to craft highly effective loan programs and insurance products tailored to Vietnamese farmers' unique needs. The simplicity, practicality, and strong predictive ability of the model chosen by BMA make it a valuable tool for guiding policy decisions.

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“…High lending rates, repayment methods, collateral requirements, document processing and credit processing time affect the ability to access credit [52][53][54] and are proven to be agricultural credit challenges for farmers. For instance, costly interest rates have been discovered to be a significant factor and the complicated application process for accessing credit greatly impacts how smallholders use institutional credit, while the biggest challenge preventing the use of agricultural credit is the limited structure of the credit process [55][56][57][58][59][60][61][62]. Limited information on credit, owned production land, monthly income, and distance to lenders also pose challenges to farmers' credit accessibility.…”

Section: Introductionmentioning

confidence: 99%

Identifying Credit Accessibility Mechanisms for Conservation Agriculture Farmers in Cambodia

Men,

Hok,

Seeniang

et al. 2024

Agriculture

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As the expected cost of conservation agriculture (CA) inputs becomes an issue for farmers, financial institutions (FIs) play an essential role in promoting CA, a set of agricultural management practices with multiple positive effects. This research aimed to determine influencing factors, to rank challenges, and identify mechanisms for farmers to access agricultural credit for adoption of CA management practices in Cambodia. It was administered by conducting a survey of 242 randomly selected households for face-to-face interviews and conducting key informant interviews from purposive samples of 28 participants in Battambang and Preah Vihear provinces. The results indicated that influencing factors, including the family, adult labor and total farm size, had a positive relationship with farmers’ accessibility to agricultural credit, whereas age was negative. However, education year, farm size for main crops, on-farm income and farm experience were not significantly associated. High interest rates were the significant first-order challenge ranked, followed by document process complication, limited agricultural credit information, limited collateral security and a few other challenges. Support and improved process mechanisms to enhance credit accessibility are required to engage with multiple stakeholders, including farmers, FIs, non-government organizations (NGOs) and government officers. There has been a reduction in agricultural credit interest rates and incentives for importing CA inputs by the government, while provision of information support for agribusiness plans by NGOs which have implemented development project activities were considered as the main support mechanism. An improved process mechanism at the farmers’ level needs to include access to credit with low interest rates and a straightforward documentation process, whereas the FI level requires a business plan for lending decisions. It is evident that high lending rates hinder access to agricultural credit and the improvement of support and improved process mechanisms are necessary to better promote CA practices among farmers in Cambodia.

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Access to credit and farmland abandonment nexus: The case of rural Ghana

Cited by 11 publications

References 59 publications

Analysis of rice farmers access to agricultural credit and profitability in South Togo

Analysis of rice farmers access to agricultural credit and profitability in South Togo

Exploring the relationship between willingness to participate in insurance and bank loan approval for coffee farmers in Dak Lak Province: A Bayesian Model Averaging approach

Identifying Credit Accessibility Mechanisms for Conservation Agriculture Farmers in Cambodia

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