Effect of Agricultural Credit Access on Rice Productivity: Evidence from the Irrigated Area of Anambe Basin, Senegal

Abstract

Rice is an important staple food in many developing countries, especially in Senegal. However, rice production in Senegal only meet 20% of the domestic demand largely due to the poor performance of rice farmers and low productivity. Access to agricultural credit has strong impacts on the technical efficiency of farmers and would promote inputs and new technology adoption. But that is not clear enough in previous studies. This study investigates the impact of agricultural credit access on rice productivity and technical efficiency with 260 random sampled rice farmers from Anambe basin in Senegal. The Stochastic Frontier Analysis (SFA) was adopted to estimate the technical efficiency. The results indicate that the inputs of rice production, including labor, pesticide, herbicides and fertilizer, have significant impacts on rice productivity. Furthermore, the results present that the average efficiency is of 0.813 and the inefficiency estimation model reveals that the influences of agricultural credit access, gender, education, ethnicity, use of improved seed and land tenure system on technical inefficiency of rice production are significant. Particularly, for the access to agricultural credit, rice farmers without agricultural credit would get 3.8% higher production inefficiency. The farmers with access to credit yield 37.32% higher rice production than their counterparts. Therefore, our study provides strong empirical evidence to promote agricultural credit in rice production.

Impact of agricultural credit disbursement on cereals yield in Odisha

“…Similarly, the findings of other studies related to India also support the present study's findings (Manoharan and Varkey, 2021;Misra et al, 2016;Naidu et al, 2013;Shivaswamy et al, 2020). Further, findings are also observed in other countries around the globe, such as Senegal (Diallo et al, 2020), Togo (Agbodji and Johnson, 2021), Indonesia (Wicaksono, 2014), and Pakistan (Khan et al, 2013;Hussain and Taqi, 2014;Kashif et al, 2016).…”

“…In the global context, Diallo et al. (2020) conducted a study on the impact of agricultural credit on rice yield during June and July 2019 in the Anambe basin of Senegal. Their study used stochastic frontier analysis and found that agricultural credit positively affects rice yield.…”

“…Though the findings of the above literature provide few insights on the impact of agricultural credit disbursement on agricultural yields, several shortcomings can be realized from the past studies. For instance, from the global perspective, several recent studies have reported the impact of agricultural credit on agricultural yields (Agbodji and Johnson, 2021;Chandio et al, 2021;Diallo et al, 2020;Kaya & Kadanalı, 2021;Miah et al, 2006;Osabohien et al, 2019;Wicaksono, 2014). However, any unarguable decision cannot be generalized to Odisha because country-specific attributes play a crucial role in the respective agricultural sectors.…”

“…In addition to this, it helps the marginal and small farmers survive while at the same time increasing the major farmers’ earning potential (Das et al., 2009). Access to agricultural financing was found to have a favourable link with agricultural yield in a number of research conducted in a variety of countries all over the world (Agbodji and Johnson, 2021; Ammani, 2012; Diallo et al., 2020; Miah et al., 2006; Wicaksono, 2014; Osabohien et al., 2019). In the context of India, we also noticed the same kinds of results (Manoharan and Varkey, 2021; Misra et al., 2016; Naidu et al., 2013; Shivaswamy et al., 2020).…”

The Impact of Agricultural Credit on Banana cultivation in Valle del Cauca, Colombia

“…On the other hand, the FGT revealed a high rate of poverty among cassava farmers (66.7%), with a higher incidence in those without access to credit. Diallo et al (2020) used Stochastic Frontier Analysis (SFA) to estimate the effect of agricultural credit on rice farmers' productivity and efficiency. They found that the effects of access to agricultural credit, gender, education, ethnicity, use of improved seeds, and land tenure system on the technical inefficiency of rice production are significant.…”