The influence of savings and credit co-operative societies on the adoption of improved crop production techniques by smallholder farmers in Songea Rural District.

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Date

2001

Journal Title

Journal ISSN

Volume Title

Publisher

Sokoine University of Agriculture

Abstract

Savings and Credit Co-operative Societies (SACCOs) in the rural areas are assumed to influence the adoption of crop production techniques by smallholder farmers. However, the extent to which SACCOs influence the adoption of crop production techniques by smallholder farmers in the rural areas is not known and this forms the major reason for conducting this study. The general objective of this study was to assess the influence of (SACCOs) on the adoption of recommended use of fertilisers, pesticides, fungicides and agricultural practices in the rural areas. The specific objectives of the study were to determine the extent to which SACCOs are involved in crop production in terms of loan disbursement, supervision and recovery; to compare the factors associated with the adoption of crop production techniques between SACCO and non-SACCO members and to compare between SACCO and non-SACCO members on the adoption of recommended use of fertilisers, pesticides, fungicides and practices on the major cash and food crops in the study area. The study was purposely carried out in Naikesi and Lilondo villages in Songea Rural District based on their accessibility from Songea town and savings status of SACCOs serving those villages. While Naikesi was served by Nguvumali SACCO, Lilondo was served by Wino SACCO. A cross-sectional survey was conducted on a randomly selected sample of 120 smallholder farmers, 60 from each village using structured questionnaire. The sampling frames of SACCO, and non-SACCO members were used to select 30 smallholder farmers each in each village. Collected data were analysed using the Statistical Package for Social Sciences (SPSS) computer programme. The analysis was supplemented by a review of available reports and published material from SACCOs, Agricultural Marketing Co-operatives Societies (AMCs), and Co-operative department. The study revealed that the influence of SACCOs on the adoption of recommended use of fertilisers, pesticides, fungicides and practices was only felt in successful SACCOs (Wino SACCO in this case) where the amount of savings was big enough to provide credit on request, supervision through credit utilisation training and loan recovery was successfully done. Also, successful SACCOs influenced the interaction of SACCO members with institutions such as markets and extension services (where a good link between SACCOs and those institutions existed) and improved their socio-economic status. However, the participation of females in SACCOs was found to be very low. In general, while it is recommended to mobilise the formation of rural SACCOs, strengthening them by improving their savings and management capacity is equally important. Production credit and especially crop production credit must be emphasised through the use of by-laws and/or policy changes. The government, SACCO members, NGOs and other organisations have a role to play in strengthening SACCOs. Credit use training must be encouraged and also females must be encouraged to join SACCOs.

Description

Dissertation

Keywords

Credit co-operative, Crop production techniques, Savings-Credit Co-operative Societies (SACCOs), Smallholder farmers, Songea Rural District, Savings credit influence

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