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
Authors
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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