Access to finance and difference in family farm productivity in Benin: Evidence from small farms

Houensou, Denis Acclassato; Goudjo, Godefroy G.; Senou, Melain Modeste

doi:10.1016/j.sciaf.2021.e00940

Cited by 9 publications

(9 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Our findings of this study are contrary to observations made by some authors. For example Kaboski and Townsend (2012) reported improvement in agricultural investment after borrowing, Denis et al (2021) reported positive changes in productivity of smallholder farmers after borrowing and Crépon et al (2015), observed increase in the scale of livestock and non-livestock agriculture activities. Chan and Ghani (2011) reported increased investment in rural enterprises and improvement in income of remote area dwellers after borrowing.…”

Section: Discussionmentioning

confidence: 99%

A comparative study on the role of microcredit on agricultural production improvement among resource-poor rural women

Namayengo

Ophem

Antonides

2023

Front. Sustain. Food Syst.

View full text Add to dashboard Cite

The objective of the study was to compare agricultural investment and agricultural production of rural agrarian women in Uganda that had received microcredit to those that had not. A quasi-experimental was used to assess differences between performance indicators of agricultural enterprises for existing and incoming borrowers of Bangladesh Rural and Advancement Committee (BRAC) microfinance. Propensity score matching was used to ensure the comparability of the groups and to assess differences between existing borrowers and in-coming borrowers, before they received their first loan. Results indicated that the major reason for borrowing was education of children. There was no difference in investment in agricultural production between the study groups. The existing borrowers had lower monetary value of all harvested crops and for maize and beans than the in-coming borrowers. Total number of animals owned, types of animals kept and reported monetary value for goats and local cattle were also less for existing borrowers than for in-coming borrowers. It was observed that the loan repayment protocols did not match income from agriculture. The results reveal a need to modify loan repayment protocols to address the latent period between agricultural investment and output.

show abstract

Section: Discussionmentioning

confidence: 99%

A comparative study on the role of microcredit on agricultural production improvement among resource-poor rural women

Namayengo

Ophem

Antonides

2023

Front. Sustain. Food Syst.

View full text Add to dashboard Cite

show abstract

“…Correspondingly, Osabohien et al (2020) employing the data from the Living Standard Measurement Study-Integrated Survey on Agriculture comprising 4,210 households for 36 states in Nigeria and the Federal Capital Territory, Abuja showed that households with access to farm credit had yields thrice compared to households without such access. Freshly, Houensou et al (2021) analysing the impact of access to credit on crop productivity of farmers in Benin using national representative survey data during 2016-2017 agricultural season, showed that access to agricultural finance has a positive impact on the crop productivity of small farmers, with an increase of 13% in crop productivity suggesting a significant performance. Likewise, Taremwa et al (2021) for 422 small farmers cultivating maize or rice in the Western and Eastern province of Rwanda employing propensity score matching technique observed that productivity was higher by 44% among the farmers who had credit access suggesting that they harvested on average an extra 440 kilograms of maize or rice.…”

Section: Empirical Nexus Between Agricultural Credit and Crop Product...mentioning

confidence: 99%

“…(2020) employing the data from the Living Standard Measurement Study-Integrated Survey on Agriculture comprising 4,210 households for 36 states in Nigeria and the Federal Capital Territory, Abuja showed that households with access to farm credit had yields thrice compared to households without such access. Freshly, Houensou et al. (2021) analysing the impact of access to credit on crop productivity of farmers in Benin using national representative survey data during 2016–2017 agricultural season, showed that access to agricultural finance has a positive impact on the crop productivity of small farmers, with an increase of 13% in crop productivity suggesting a significant performance.…”

Section: Empirical Nexus Between Agricultural Credit and Crop Product...mentioning

confidence: 99%

Agricultural credit and productivity of crops in India: field evidence from small and marginal farmers across social groups

Yadav

Rao

2022

JADEE

View full text Add to dashboard Cite

PurposeThis work examines the impact of institutional agricultural credit on crop productivity of some major crops such as paddy, cotton, wheat and pulses for small and marginal farmers across various social groups.Design/methodology/approachThe cross-sectional field data on socio economic variables was collected from three Indian states from about 400 small and marginal farmers across various social groups using multi-stage stratified random and purposive sampling through a structured questionnaire by interviewing. The method of propensity score matching (PSM) was employed to calculate average treatment effect (ATE) and average treatment effect on the treated (ATET) by categorising sample farmers as treatment group and control group where crop productivity was considered as outcome variable and access to institutional credit was considered as treatment variable.FindingsThe PSM estimates reveal that ATE and ATET for all the selected crops are found to be significantly higher for the treated group vis-à-vis non-treated group suggesting that institutional agricultural credit has a statistically and significant positive impact on the crop productivity.Research limitations/implicationsSimilar study can be extended for more crops and across regions in India for a universal coverage.Originality/valueThe agricultural credit policy of India has been to increase the access and availability of institutional farm credit. This has led to in general increase in the flow of formal farm credit to agricultural sector. However, the impact of institutional credit and crop productivity especially for small and marginal farmers across social groups is not well recognized in India using field data. Accordingly, this field data study contributes to the existing research by providing fresh evidence from field across social groups for both kharif and rabi crops using recent survey data from small and marginal farmers which has important policy implications.

show abstract

“…However, these business actors, in general, still need to solve the problem of limited availability of capital. Weak capital in the agricultural sector is ordinary in developing countries, accompanied by household constraints in accessing credit [1]. This condition can hamper efforts to increase production and living standards of rural communities because limited capital will restrict economic activity [2].…”

Section: Introductionmentioning

confidence: 99%

“…This condition can hamper efforts to increase production and living standards of rural communities because limited capital will restrict economic activity [2]. Some factors that cause capital problems in the agricultural sector : (1) there is no particular financial institution that finances this sector, (2) the credit distribution system and procedures are still complicated, (4) the ability of farmers' access to financing sources is limited [3], (5) agricultural businesses are still considered high risk and less feasible, (6) the credit scheme still focuses on production activities, still rare for pre-production, postharvest activities, (7) business guarantee has not developed in agriculture [4], and (8) there is still limited insurance in agriculture [5]. The key to overcoming this is making financing institutions easily accessible to generally small-scale farmers.…”

Section: Introductionmentioning

confidence: 99%

Analysis The Growth of Microfinance in Upland Areas

Rachmawati,

Ashari,

Syukur

et al. 2023

E3S Web of Conf.

View full text Add to dashboard Cite

Farmers in upland areas struggle with the accessibility of financial institutions. Due to their remote location and the absence of finance branch offices; therefore, The Ministry of Agriculture and the Islamic Development Bank (IsDB) are working together to resolve finance access difficulties by developing Agribusiness Microfinance Institutions (MFI) in upland communities. The study aimed to assess the agricultural sector’s potential and funding restrictions and examine the growth of microfinance in the Upland area. The study was conducted in Garut, Tasikmalaya, Lebak, and Subang districts in October and November 2022. Both primary and secondary data were included in the data set. The data were then descriptively and qualitatively analyzed. The findings indicate that the research area has the potential to expand microfinance based on the existing financial institutions established by the government in various programs. The fundamental issue with MFI is a need for more liquidity, the fulfilment of legality requirements, the role of local governments to arrange, microfinance financial management system plan, implementation of banks as microfinance fund distributors, and loan interest rates paid to farmers. Efforts are needed to speed up the microfinance development process in partnership with formal financing institutions dedicated to assisting farmers and business operators in providing capital.

show abstract

Access to finance and difference in family farm productivity in Benin: Evidence from small farms

Cited by 9 publications

References 15 publications

A comparative study on the role of microcredit on agricultural production improvement among resource-poor rural women

A comparative study on the role of microcredit on agricultural production improvement among resource-poor rural women

Agricultural credit and productivity of crops in India: field evidence from small and marginal farmers across social groups

Analysis The Growth of Microfinance in Upland Areas

Contact Info

Product

Resources

About