Does experience with agricultural loans improve farmers' well-being? Evidence from Benin

Sagbo, Nicaise Sheila M.; Kusunose, Yoko

doi:10.1108/afr-06-2020-0082

Cited by 9 publications

(6 citation statements)

References 26 publications

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“…In their research, Seven and Tumen (2020) present evidence of international studies that support the positive relationship between agricultural credit and agricultural productivity and demonstrate using a combination of panel data that agricultural credit operates primarily on the agricultural component of GDP in developing countries and on agricultural labor productivity in developed countries. Agricultural loans have a statistically significant positive effect on beneficiaries' farm incomes, food security and women's empowerment (Sagbo and Kusunose, 2021). Sakhno et al (2019) agree with increasing the volume of external financing and achieving a close relationship between the parameters: Loan-investment-increase in production and sales to form a functional environment, considering the possibilities of optimizing financial costs.…”

Section: Agricultural Loans-a Literature Reviewmentioning

confidence: 89%

Factors that influence bank loans for agriculture in Romania

Topor,

Ionescu,

Fülöp

et al. 2023

J. Infras. Policy. Dev.

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Agriculture is a determining factor regarding the development of the Romanian economy, noting its importance for population consumption and as a supplier of raw materials for the relaunch of other industries. Agricultural financing consists of credits granted to natural or legal persons for developing agricultural activities, expanding agricultural holdings, and commercializing agricultural production. The objective of this research is the statistical analysis of the determining factors in granting loans to Romanian farms. The study is based on the content analysis of the accounting reports of the 45 Romanian farms included in the research sample, based on which the profile of the farmer from the selected counties (Alba, Cluj, Mures, Sibiu, Dambovita and Prahova) is outlined. The obtained results highlight the fact that factors such as the requested amount (SUSO) are directly influenced by the worked area (TELU), by the turnover (CIAF), R = 0.6228, but also by the total value of the assets (TOTAL) R = 0.454. At the opposite pole, there is a weak correlation between SUSO and current liquidity (LICU), R = 0.2754, and the value of recorded expenses (CHEL), R = 0.3102. Implementing a credit policy that facilitates access to financing sources would support farms in modernization and development, increasing their competitiveness and general viability.

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Section: Agricultural Loans-a Literature Reviewmentioning

confidence: 89%

Factors that influence bank loans for agriculture in Romania

Topor,

Ionescu,

Fülöp

et al. 2023

J. Infras. Policy. Dev.

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“…Seasoned farmers have upper hand in optimizing output [37] and knowledge regarding the application of inputs and effective mitigation of risks and other farming challenges [38].…”

Section: Repayment Status Of Loan Based On Experience In Farmingmentioning

confidence: 99%

Effect of Borrower's Socio-Economic Profile on Agribusiness Loans Default Rate in Agricultural Finance Corporation, Mount Kenya Region

Miriti

Kingori

Mwirigi

2023

JEMT

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Background: Agribusiness loans advanced by Agricultural Finance Corporation (AFC) in Mount Kenya Region have high default rate of 20.33% which compares unfavourably with 10% benchmark for all types of loans in Kenya. This is a challenge, given the strategic importance of agribusiness credit in mainstreaming livelihoods to alleviate poverty by offering occupational and professional opportunities. This study aimed at analysing effect of borrower’s socio-economic profile on AFC loan default rate in agricultural finance corporation, Mount Kenya Region. Methods: According to AFC records Mount Kenya region represents a branch network of 11 branches and a population of 3,002 agribusiness borrowers. Using a descriptive research design a sample of 300 borrowers was drawn from a combined list through systematic random sampling technique with an interval of ten. Primary data on borrower’s socio-economic profile was collected using a structured questionnaire. The data was analysed using Statistical Packages for Social Sciences (SPSS V.27) and Stata version. Using regression analysis, the effect of independent and dependent variable to predict default rate was estimated. ANOVA was performed to get the F-statistic so as to test for the adequacy of the regression model. The logit econometric model was used to specify the statistical relationship between the independent variable and AFC loan default. Results: Results of the study revealed that multiple borrowing and borrower-lender distance were significant at 5%. Farming experience, borrowing experience and off-farm income were significant at 10%, 5% and 1% levels of significance. Multiple borrowing and borrower-lender distance were found to have 5.5% and 0.8% associations with default rate, respectively. Conclusion: The findings show that to mitigate default, the borrower should avoid multiple borrowing and manage the friction of distance. The study is significant since it enlightens the credit stakeholders on collective efforts that are effective in addressing the problem of default. The study recommends government interventionist policy by facilitating uptake of agricultural insurance and subsidizing input costs. Borrowers are encouraged to embrace technology, team up as farming communities to look for markets and affordable inputs, adopt agricultural insurances and adhere to lending directives.

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“…With the improvement of farmers' living standards, they will pursue green production methods conducive to their own safety. The well-being and income level of farmers receiving credit support will be greatly improved (Sagbo and Kusunose , 2020). Money has a great in uence on people's life.…”

Section: Rural Nancial Institutionsmentioning

confidence: 99%

“…Scholars have done a lot of research on the impact of agricultural loans of rural nancial institutions on farmers' life and agricultural production. Khan et al (2007) found that agricultural loans have a positive impact on improving crop yield; Solomon et al (2016) showed that bank loans to farmers are conducive to improving farmers' living standards; Sagbo and Kusunose (2020) believed that in developing countries, services in the nancial sector provide favorable conditions for agricultural activities. Therefore, The conclusion that bank credit support has a positive impact on the development of agriculture has been con rmed by many scholars.…”

Section: Introducementioning

confidence: 99%

Environmental protection and pollution prevention: What determines the intention of tea farmers’ ecosystem construction

ShaLou

Zhang

2021

Preprint

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Pesticide is inevitable in the process of tea production. Residual chemical pesticides absorbed by human body and soil will pose a great threat to human health. The construction of tea garden ecosystem that uses the principle of mutual restriction between species can effectively reduce the number of pests and the dependence on pesticides. In order to improve the adoption and attention of green production among farmers, the government strongly supports rural financial institutions to lend to farmers and encourages resources to be inclined to farmers. The aim of this study was to find out what factors affect the intention of tea farmers’ ecosystem construction and the differences of influence on intention of Chinese tea farmers' ecosystem construction under different financing modes. The results of the empirical research showed that the attitude, perceived behavioral control and subjective norms of tea farmers have a significant positive impact on the behavioral intention. And for tea farmers who get bank financing, the influencing intensity and significance of factors are different from those who obtain private credit. This study provided a theoretical basis for government to promote the development of ecosystem construction in the agricultural section, and put forward suggestions for financial institutions to serve environmental protection.

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Does experience with agricultural loans improve farmers' well-being? Evidence from Benin

Cited by 9 publications

References 26 publications

Factors that influence bank loans for agriculture in Romania

Factors that influence bank loans for agriculture in Romania

Effect of Borrower's Socio-Economic Profile on Agribusiness Loans Default Rate in Agricultural Finance Corporation, Mount Kenya Region

Environmental protection and pollution prevention: What determines the intention of tea farmers’ ecosystem construction

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