Economic and Institutional Elements of Loan Repayment Capacity of Smallholder Farmers in the Transitional Zone of Ghana

Loan Repayment Performance on Smallholder Tobacco Contract Farmers. A Case of Ward 21 Marondera District, Mashonaland East Province

“…The analysis was conducted using tools such as SPSS V21 and MS EXCEL 2013. According to Hu and Lee (2015), the Slovin formula is the best appropriate for determining sample size in a mixed methodological approach. To supplement the data acquired from researcheradministered questionnaires, the researcher used observation techniques.…”

“…Malawi is the largest tobacco exporter in Sub-Saharan Africa, according to Minot (2011), with projected export values of US$ 437 million in 2021. In 1993, economic reforms leading to the liberalization of tobacco exports resulted in an estimated 200,000 smallholders farming Burley tobacco for export; this led to documented increases in smallholder income and even translated into higher yields of maize because the income from tobacco farming made it easier to purchase fertilizer for maize production.…”

“…In 1993, economic reforms leading to the liberalization of tobacco exports resulted in an estimated 200,000 smallholders farming Burley tobacco for export; this led to documented increases in smallholder income and even translated into higher yields of maize because the income from tobacco farming made it easier to purchase fertilizer for maize production. Orr (2000) and Jaffee (2003), cited in Minot (2011), agree that contract farming was limited by the requirement that tobacco be sold only on the auction floor. Minot (2011) states that in 2005, a separate section of the auction floor in Malawi was allocated for contract buyers.…”

“…Orr (2000) and Jaffee (2003), cited in Minot (2011), agree that contract farming was limited by the requirement that tobacco be sold only on the auction floor. Minot (2011) states that in 2005, a separate section of the auction floor in Malawi was allocated for contract buyers. In 2007 and 2008 two large buyers (Limbe Leaf and Alliance One) established contracts with groups comprising ten small buyers.The members assumed collective responsibility for the loans they obtained, and the groups decreased the cost of delivering inputs and technical help.…”

“…Selling was place on auction floors prior to the introduction of contract farming in Zimbabwe's tobacco industry in 2004 (Khumalo, 2013). (Hu & Lee, 2015). Approximately 80% of Zimbabwe's smallholder tobacco producers held contracts with private corporations (TIMB, 2018).…”