The Impact of Agricultural Credit on Rice Productivity

Wicaksono, Eko

doi:10.18517/ijaseit.4.5.427

Cited by 14 publications

(14 citation statements)

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“…This suggests that agricultural credit access would decrease rice production inefficiency. This result is consistent with the results from Sjah et al (2003) and Wicaksono (2014). Ethnicity is significant at 10% that means Fulani are more inefficient in rice cultivation than other ethnics in Anambe area.…”

Section: Descriptive Statisticssupporting

confidence: 92%

“…The results indicated that credit constraints hinder farmers' production performance. Sjah et al (2003) and Wicaksono (2014) also got the similar conclusions and pointed that agricultural credit has stronger influences on the intensified farming. Enyim et al (2013), applied the unit-root cointegration to investigate the relationship between banking sector credits and agricultural activities in Nigeria.…”

Section: Introductionmentioning

confidence: 64%

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Effect of Agricultural Credit Access on Rice Productivity: Evidence from the Irrigated Area of Anambe Basin, Senegal

Diallo¹,

Zhou²,

Elham³

et al. 2020

JAS

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Rice is an important staple food in many developing countries, especially in Senegal. However, rice production in Senegal only meet 20% of the domestic demand largely due to the poor performance of rice farmers and low productivity. Access to agricultural credit has strong impacts on the technical efficiency of farmers and would promote inputs and new technology adoption. But that is not clear enough in previous studies. This study investigates the impact of agricultural credit access on rice productivity and technical efficiency with 260 random sampled rice farmers from Anambe basin in Senegal. The Stochastic Frontier Analysis (SFA) was adopted to estimate the technical efficiency. The results indicate that the inputs of rice production, including labor, pesticide, herbicides and fertilizer, have significant impacts on rice productivity. Furthermore, the results present that the average efficiency is of 0.813 and the inefficiency estimation model reveals that the influences of agricultural credit access, gender, education, ethnicity, use of improved seed and land tenure system on technical inefficiency of rice production are significant. Particularly, for the access to agricultural credit, rice farmers without agricultural credit would get 3.8% higher production inefficiency. The farmers with access to credit yield 37.32% higher rice production than their counterparts. Therefore, our study provides strong empirical evidence to promote agricultural credit in rice production.

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Section: Descriptive Statisticssupporting

confidence: 92%

Section: Introductionmentioning

confidence: 64%

Effect of Agricultural Credit Access on Rice Productivity: Evidence from the Irrigated Area of Anambe Basin, Senegal

Diallo¹,

Zhou²,

Elham³

et al. 2020

JAS

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show abstract

“…Credit receipt allows farmers to purchase improved seeds, fertilizer, and pesticides and use more efficient production methods that ultimately enhance the productivity of the farmers. Prior studies found that a 10% increase in agricultural credit is associated with 1.2 ton per hectare increase in productivity [47], and paddy production can be increased 8.5% by increasing credit by 10% [48]. Not surprisingly, we found farmers that used more mechanization, and more advanced irrigation methods had higher yields.…”

Section: Discussionsupporting

confidence: 48%

Constraints to Agricultural Production and Marketing in the Lagging Regions of Bangladesh

Quddus

Kropp

2020

Sustainability

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This study analyzes the constraints affecting agricultural production in the lagging regions of Bangladesh. These regions are lagging in agricultural productivity due to natural phenomena and past government policies. Ten lagging regions, covering eight administrative divisions, were selected for analysis based on crop productivity indicators, percentage of the population in extreme poverty, and agroecological zones. Data were collected from 1257 farm holders using a structured questionnaire. Respondents were mostly older, illiterate males with low levels of education. Production constraints included inadequate supplies of fertilizer and pesticides in local markets. Labor accounted for the highest proportion of agriculture expenditures (51.3%), followed by equipment rental (11.8%), then pesticides (9.3%), and irrigation (8.2%). Only 35.4% of respondents availed credit to purchase agricultural inputs; among them, 85.4% borrowed from formal sources. Lack of proper irrigation facilities, production machinery, and access to institutional credit, difficulties procuring inputs and storing products, and negative impacts of climate were identified as the major constraints to agricultural productivity and marketing in the lagging regions. Access to credit and being adversely affected by weather impacted respondents’ agricultural productivity more than sociodemographic factors.

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“…Empirical assessments of the effect of access to credit on productivity in past studies have shown mixed results. Some of these studies have shown that access to credit has a positive and statistically significant impact on productivity (Ayaz and Hussain, 2011; Bashir et al , 2010; Chisasa and Makina, 2013; Dong et al , 2010; Feder et al 1990; Gomina et al , 2015; Iqbal et al , 2003; Wicaksono, 2014). In other words, with access to credit, farmers are able to shift their production frontier outwards.…”

Section: Introductionmentioning

confidence: 99%

The impact of credit on productivity of smallholder farmers in Ghana

Nordjo

Adjasi

2019

AFR

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Purpose The purpose of this paper is to evaluate the impact of access to production credit on the productivity of smallholder farmers. Design/methodology/approach Data for the study were drawn from the Agricultural Value Chain Facility (AVCF), which was implemented in the Northern Region of Ghana. This paper uses the Propensity Score Matching (PSM) to estimate the average treatment effect of access to production credit on the productivity of smallholder farmers. The rationale for the choice of this estimation technique is to control for selection bias since the treatment variable (access to production credit) was not randomised. The authors also test for the effect of hidden bias using “Rosenbaum bounds” sensitivity analysis. The study uses two control groups to examine the net effect of credit on productivity. Findings The results reveal that smallholder farmers with access to production credit increased productivity through investment in farm inputs. For the impact of credit on productivity using control Group 1, the result shows that farmers with access to credit increased their productivity by 0.170 metric tonnes per hectare and for control Group 2, the result shows an increase of 0.252 metric tonnes per hectare more than farmers who are without access to production credit. Practical implications The evidence as provided by this paper is that access to production credit is significant to meet the credit needs of smallholder farmers and therefore contributes to the policy debate on whether access to credit has impact on the productivity of smallholder farmers. Originality/value The paper shows the importance of production credit in augmenting the production function of smallholder farmers.

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The Impact of Agricultural Credit on Rice Productivity

Cited by 14 publications

References 0 publications

Effect of Agricultural Credit Access on Rice Productivity: Evidence from the Irrigated Area of Anambe Basin, Senegal

Effect of Agricultural Credit Access on Rice Productivity: Evidence from the Irrigated Area of Anambe Basin, Senegal

Constraints to Agricultural Production and Marketing in the Lagging Regions of Bangladesh

The impact of credit on productivity of smallholder farmers in Ghana

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