Factors Affecting Farm Performance among Small-Scale Farmers in the Volcanic Highlands of Rwanda: What is the Role of Institutions?

Abstract

This study attempted to examine the role of institutions in boosting rural and agricultural development in the region of the Volcanic Highlands of Rwanda. Both qualitative and quantitative data were collected from a random sample of 401 small-scale farmers through a questionnaire. Data were analyzed using a weighted least-squares method to account for heteroscedasticity, a common issue in cross-sectional studies. Results from crop output function reveal a positive and significant effect of cooperative membership, a negative but significant effect of extension services, and a negative non-significant effect of land tenure, credit access, and market access on farm production, respectively. In terms of net farm income function, the results demonstrate that farmer cooperation, land tenure, extension services, and access to output markets have a positive, non-significant influence, but that access to finance has a negative non-significant effect. Results also point to a positive and significant effect of some household characteristics, namely family size, farming experience, land size, and farm yield, on farm production. As for net farm income, education of the head, family size, farm experience, land size, farm yield, selling price, and cattle proved to be among primary determinants. It was therefore suggested that agricultural sector programs and activities should be readapted and strengthened in order to leverage rural and agricultural development in Rwanda.

Determinants of credit access among rice farmers in rural Cameroon

“…This is in line with other studies which state that access to microcredit increases agricultural investment in diverse contexts (e.g., Blasé, 1971;Ilebanmi, 1983;Osabohien et al, 2020), with the opposite observed among credit-constrained farmers (Djoumessi et al, 2018;Offor et al, 2021). It, however, contradicts the findings of Maniriho et al (2021), who reported the opposite among small-scale farmers in Rwanda.…”

“…Access to credit has been reported as a key lever for agricultural investment, productivity increases, technology adoption, market participation, and price transmission in many countries across Africa (Alhassan et al, 2020;Osabohien et al, 2020); with its absence impeding agricultural productivity (Assogba et al, 2017;Djoumessi et al, 2018;Mensah et al, 2019;Offor et al, 2021). Few studies have reported negative effects of access to agricultural credit in terms of increased loan delinquency and lower productivity, mainly resulting from unforeseen climate-related risks (e.g., floods and droughts), price volatility, and unstable socio-political environments (Tetteh et al, 2021;Maniriho et al, 2021). Overall, there is a consensus among African academics that the benefits of credit access for agriculture outweigh the costs, especially for smallholder farmers (De Aghon and Murdoch, 2005;Thunstrom, 2021).…”

Factors Affecting the Acceptance of Dairy Farming Standards by Modernized Farmers for Agricultural Extension in Thailand

“…Experience helps farmers to have a better understanding and a more positive attitude towards farming business development. Maniriho, Musabanganji, and Lebailly (2021) discovered that farmers' experience was a positive and significant factor in yields and incomes. This finding corresponds with Hansen and Jervell (2015), who found that farmers with experience in consistent transformation processes could manage farms effectively, and Haloho, Santoso, Marzuki, Roessali, and Setiadi (2013), who claimed that experience in dairy farming was significantly associated with profit .…”

Evaluation of water-user performance in smallholder irrigation schemes in KwaZulu-Natal Province, South Africa: A stochastic meta-frontier analysis

“…Gandasari et al (2021) found that the age of the farmer has a negative effect on performance, as older farmers are less likely to seek new information, are reluctant to adopt innovative practices, and stick to traditional. Furthermore, (Maniriho et al, 2021) suggest that the older the farmer, the less fit they may be to carry out activities, even though they have a wealth of experience. Agyeman et al (2014) found a positive effect of female household head on household income diversification, which contrasted with the findings of Maniriho et al (2021), who found an inverse results, as depicted by a significant differential of farm income between male and female farmers.…”

“…Furthermore, (Maniriho et al, 2021) suggest that the older the farmer, the less fit they may be to carry out activities, even though they have a wealth of experience. Agyeman et al (2014) found a positive effect of female household head on household income diversification, which contrasted with the findings of Maniriho et al (2021), who found an inverse results, as depicted by a significant differential of farm income between male and female farmers. In assessing performance, previous studies have adopted several proxies and measures of performance; this has also resulted in the use of techniques used to analyse the factors which affect performance (Ojo, 2006;Speelman et al, 2008;Verhofstadt and Maertens, 2014;Tajbakhsh and Hassini, 2015).…”