Evaluating economic impact of credit to small-scale farmers: a case study of Turiani division, Morogoro
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Date
2008
Authors
Journal Title
Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
The study of evaluating economic impact of credit to small scale farmers was carried out
in Turiani division. Specifically the study aimed at evaluating impact of that credit on
use of modem agricultural inputs, impact of credit to smallholders’ livelihood and the
performance of savings and credit cooperative societies. Both purposive and simple
random sampling techniques were used in the sampling process. Purposive technique
was used to select the area of study and target population relevant to the study. Six
groups of beneficiaries each containing 5-20 members were randomly selected for the
study. Equal number of non-beneficiaries was purposively selected from six villages.
Therefore a total of 36 borrowers were selected and equal number of non-beneficiaries
was selected from six villages of Turiani division. The sampling unit comprised of 36
beneficiaries and 36 non-beneficiaries. These villages were purposively selected due to
easy accessibility and the fact that they have many farmers who were using SACCOS
services. After the study, results revealed that there is a positive impact in terms of
farmers’ use of modem and purchased agricultural inputs, credit on smallholder farmers
livelihood and the performance of savings and credit and cooperative societies. The
findings from this study will assist the government and other MFIs to formulate
procedures to design institutional frameworks for improving credit services to small-
scale farmers. Furthermore, the findings of this study will also assist private and public
sector to enhance the ability of poor farmer to access credit and consequently improve
their living standards through increased earning from their agricultural activities.
Description
Thesis
Keywords
Economic impact, Small-scale farmers, Credit cooperative societies, Modem agricultural inputs