Determinants of microfinance loan utilization by smallholder farmers: The case of Omo Microfinance in Lemo District of Hadiya Zone, Southern Ethiopia

Ayele, Amanuel; Goshu, Degye

doi:10.5897/jdae2016.0726

Cited by 7 publications

(3 citation statements)

References 3 publications

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“…As presented in Table 7, the majority (76%) of the smallholder farmers perceived the payback period to be long (long -24% and very long -52%) meaning they preferred a short payback period. The findings were consistent with the ones of Chauke et al (2013) and Ayele and Goshu (2016) who revealed that access to credit is negatively influenced by the perception of the loan repayment period. Therefore, long payback periods are more applicable to businesses that produce and sell throughout the whole year, not to seasonal economic activities as agriculture.…”

Section: Smallholder Farmers' Perceptions Towards Payback Period (Ppp)supporting

confidence: 92%

Characterisation of smallholder resettled sugarcane farmers and their perceptions towards microfinance in Zimbabwe (Chiredzi)

Matsvai

Mushunje

Tatsvarei³

2021

J. Agribus. Rural Dev.

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The study sought to characterize smallholder A2 resettled sugarcane farmers and evaluate their perceptions towards microfinance. Data was collected using a questionnaire. Descriptive statistics were used. Results revealed that the majority of farmers solely depend on sugarcane farming. More than 80% of farmers (non-participants) were risk averse while, 90% of the beneficiaries indicated to be risk neutral. More than 90% of the sample farmers subscribe to Sugarcane Farmers Associations. Farmers perceived interest rates, processing and administration charges to be very high. Male farmers dominated their female counterpart and primary education being the highest education level attained by the majority of farmers. Farmers perceived the Estate to be offering better support than the government, MFIs and Farmers Associations in their areas of advocacy. Policy suggestions include gender balance on land allocation; government to be proactive after allocating land. Further recommendations include that MFIs should supplement the disbursed funds with other non-financial services; reduce interest rates, payback period, application procedures and time and increasing grace period.

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Section: Smallholder Farmers' Perceptions Towards Payback Period (Ppp)supporting

confidence: 92%

Characterisation of smallholder resettled sugarcane farmers and their perceptions towards microfinance in Zimbabwe (Chiredzi)

Matsvai

Mushunje

Tatsvarei³

2021

J. Agribus. Rural Dev.

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“…This result was consistent with Argaw (2017) who found that a one-unit increase in the farmer's education level resulted in a 0.033 increase in the farmer's likelihood of obtaining credit from microfinance institutions (MFIs). There was a positive relationship between the education level of farmers and the probability of accessing to credit (Amanuel & Degye, 2018;Asante-Addo et al, 2013;E. Saqib et al, 2018;Mohamed, 2003;Mulatu et al, 2020).…”

Section: Educationmentioning

confidence: 99%

Literature Review on Farmers’ Agricultural Credit Access in Ethiopia

URAGO¹,

Bozoğlu²

2021

Anadolu Journal of Agricultural Sciences

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“…Amanuel and Degye [11] examined the determinants of smallholder farmers' use of microfinance loans in the Lemo district of the Hadiya area, Southern Ethiopia: the case of Omo microfinance. The researcher observed that sex, literacy status, level of income, level of savings, the intent of loan taking and perception of loan repayment were significant factors influencing the number of loans obtained.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Loan Acquisition and Utilization among Smallholder Rice Producers in Lagos State, Nigeria

Ameh

Lee

2022

Sustainability

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Agriculture is a major contributor to economic development in most developing nations, with smallholder farmers playing a critical role, but their productivity and growth are impeded by a lack of access to agricultural loans. The affordability of loans is critical for sustainable agricultural development. Therefore, this paper investigates farmers’ loan acquisition and utilization, as well as their choice of loan sources using a two-part model and multinomial logit model. A total of 281 smallholder rice farmers were surveyed in Lagos State, Nigeria. The empirical findings show that marital status, farm size, and interest rate were all positive and significant influences on farmers’ loan sources of choice. In addition, annual farm revenue and the interest rate have a significant positive impact on loan access, whereas education, farming experience, farm size, off-farm income, and farm income have a major impact on loan use. The study also reveals that the preferred loan source differs according to the characteristics of farm households. The study concluded that access to loans increases farmers’ income in the region. It was recommended that the socio-economic characteristics of rice farmers should be considered when formulating and implementing policies to improve smallholder farmers’ access to agricultural loans.

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Determinants of microfinance loan utilization by smallholder farmers: The case of Omo Microfinance in Lemo District of Hadiya Zone, Southern Ethiopia

Cited by 7 publications

References 3 publications

Characterisation of smallholder resettled sugarcane farmers and their perceptions towards microfinance in Zimbabwe (Chiredzi)

Characterisation of smallholder resettled sugarcane farmers and their perceptions towards microfinance in Zimbabwe (Chiredzi)

Literature Review on Farmers’ Agricultural Credit Access in Ethiopia

Determinants of Loan Acquisition and Utilization among Smallholder Rice Producers in Lagos State, Nigeria

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