IMPACT OF AGRICULTURAL CREDIT ACCESS ON AGRICULTURAL PRODUCTIVITY AMONG MAIZE AND RICE SMALLHOLDER FARMERS IN RWANDA


Abstract

This paper assesses the impact of access to agricultural credit on the agricultural productivity of 422 smallholder farmers that cultivate maize or rice in the Western and Eastern province of Rwanda. Stratified, simple random and convenience sampling techniques were used to sample districts, sectors, cells and households. Data were collected using structured interviews and analyzed using propensity score matching techniques. Results indicated that productivity was higher by 44% among the farmers who accessed credit implying that they harvested on average an extra 440 kilograms of maize or rice. According to a crop-specific analysis, agricultural credit access had a more significant impact on maize productivity, with a difference in proportion of 68% (p = 0.000) but had no impact on rice productivity (p = 0.149). The study concludes that agricultural credit was important for Rwanda’s agricultural productivity. Thus policy measures should aim at improving smallholder farmers’ access to agricultural credit and promoting the use of modern agricultural inputs, particularly among rice farmers in Rwanda

Keywords

rice; maize; smallholder farmers; agricultural productivity; credit access; Rwanda

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Published : 2021-04-02


Taremwa, N., Macharia, I., Bett, E., & Majiwa, E. (2021). IMPACT OF AGRICULTURAL CREDIT ACCESS ON AGRICULTURAL PRODUCTIVITY AMONG MAIZE AND RICE SMALLHOLDER FARMERS IN RWANDA. Journal of Agribusiness and Rural Development, 59(1), 39-58. https://doi.org/10.17306/J.JARD.2021.01341

Nathan Kanuma Taremwa  nathantaremwa@students.ku.ac.ke
University of Rwanda (UR)  Rwanda
https://orcid.org/0000-0001-7919-9291

Mr., Lecturer, Department of Rural Development and Agricultural Economics, University of Rwanda, P.O. Box 4285, Kigali, Rwanda 


Ibrahim Macharia 
Kenyatta University (KU) Nairobi, Kenya  Kenya

dr, Senior Lecturer, Department of Agricultural Economics, Kenyatta University, P.O. Box 43844-00100, Nairobi, Kenya

Email: macharia.ibrahim@ku.ac.ke


Eric Bett 
Kenyatta University (KU) Nairobi, Kenya  Kenya

dr, Senior Lecturer, Department of Agricultural Economics, Kenyatta University, P.O. Box 43844-00100. Nairobi, Kenya


Eucabeth Majiwa 
Jomo Kenyatta University (JKUAT)  Kenya

Senior Lecturer, Department of Agricultural and Resource Economics, Jomo Kenyatta University of Agriculture and Technology, P.O. Box 62000-00200 Nairobi, Kenya                




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