Credit constraints and soybean farmers' welfare in subsistence agriculture in Togo

Abstract

This study assesses the impact of credit constraints on soybean farmers' welfare in subsistence agriculture in Togo. In order to control potential sample selection bias, the endogenous switching regression method was adopted and data collected from a random sample of 500 soybean farmers were used. The results showed that farmers' age, being a member of the soybean organization and selling the soybean to a recognized NGO or to a private organization and growing cotton or cashew are the main determinants of access to full amount of credit. The results show a discrimination against gender in accessing the full amount of credit. Formal education and participating in the extension programs would increase farmers' welfare. Increasing land cultivation would increase women's welfare compared to men. Adopting intercropping technique as conservation agriculture has positive and significant impact on women's welfare. Moreover, having access to the full amount of credit increases soybean production by 1.35% and farmers' revenue by 1.32%, compared to farmers without having access to the full amount of credit. These results suggest the rethinking of the role of agricultural credit in soybean farmers' welfare in the study areas with great attention to the gender dimension.

What is the impact of rural bank credit access on the technical efficiency of smallholder cassava farmers in Ghana? An endogenous switching regression analysis

“…The negative coefficient of extension access in this study implies that smallholder cassava farmers with access to agricultural extension services are less technically inefficient collated with farmers without access to extension services. This finding is in line with that of Ali and Awade (2019), who found that access to extension services significantly improves the productivity of credit-constrained soybean farmers in Togo. Enhancements in the scope and delivery of agricultural extension services would translate into significant improvements in the TE of farmers in the district.…”

Credit constraints and rural farmers’ welfare in an agrarian economy

“…The scarcity of agricultural economic goods and insufficient access to credit might affect farmer's well-being, which consists of farm production, sustenance, and food security ( Ali and Awade, 2019 ; Awotide et al., 2015 ; Asiedu et al., 2013 ). Farmers could procure farm implements, but they are urged by credit constraints to confine their spending and production preferences ( Dong et al., 2012 ).…”

“…(2016) ; Muayila and Tollens (2012) , and Baiyegunhi et al. (2010) A recent study by Ali and Awade (2019) utilized production and net revenue as an indicator to measure farmer's welfare.…”

“…Therefore, this study is unique in nature to determine the effects of credit constraints on wheat farmer's income/welfare in consequences of utility purposes (spending and income) in the Sindh province of Pakistan. By the help of an in-depth analysis of previous literature we use spending as the indicator for welfare which is also used by Wossen et al (2017), Tran et al (2016); Muayila and Tollens (2012), and Baiyegunhi et al (2010) A recent study by Ali and Awade (2019) utilized production and net revenue as an indicator to measure farmer's welfare.…”

Analysis of Factors Influencing Access to Credit for Vegetable Farmers in the Gulf Prefecture of Togo

“…A theory is also based on the link between access to credit and its influence on farmers' income and welfare. Ali and Awade (2019) establish that access to credit for soybean farmers in Togo has a positive effect on their income and welfare.…”