Institutional Factors Influencing the Decision to Take Financial Credits among Small Holder Coffee Farmers in Rwanda

Mpirwa, Iyakare Super; Mburu, David Mwehia; Mulyungi, Patrick; Eric, Ntaganira; Aimable, Nsengiyumva

doi:10.18535/ijsrm/v6i3.ah02

Cited by 3 publications

(4 citation statements)

References 2 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This finding agrees with studies that show a positive effect of extension contact with household savings (Asare et al. , 2018; Mpirwa et al. , 2018), but it contradicts with those that show a negative effect of extension contact on household participation in saving (Girma 2014).…”

Section: Resultssupporting

confidence: 79%

“…The possible explanation was that extension workers help farmers to improve agricultural productivity, and higher yields can translate into higher incomes and higher savings. This finding agrees with studies that show a positive effect of extension contact with household savings (Asare et al, 2018;Mpirwa et al, 2018), but it contradicts with those that show a negative effect of extension contact on household participation in saving (Girma 2014). About, 49.4% of the study population had access to credit, while the rest (50.6%) had no access to credit.…”

Section: Impact Of Saving On Food Securitysupporting

confidence: 79%

See 1 more Smart Citation

The impact of cash saving on the food security status of smallholder coffee farmers: evidence from southwest Ethiopia

Dinegde

Bekele

Sima

2022

IJSE

View full text Add to dashboard Cite

PurposeEthiopia suffers from structural food insecurity due to its low food production, low purchasing power, and climatic shocks such as drought. Coffee is Ethiopia's primary source of foreign earnings, and 95% of it is produced by smallholder farmers. Coffee also provide better income to smallholder farmers than other crops. However, it is unclear how much smallholder coffee producers participate in cash savings and if their savings help them attain food security. In this study, the authors aim to assess the impact of cash savings on the food security of smallholder coffee farmers in Ethiopia.Design/methodology/approachUsing cross-sectional quantitative data from 336 randomly selected households and qualitative data from the local community, this study examines the impact of cash savings on household food security. Logistic regression and propensity score matching models were used to analyze the impact of cash savings on households' food security.FindingsAbout, 43.5% of coffee farmers did not participate in cash savings during the study period, while 50.6% had no access to credit. The major factors that limit households' likelihood of participating in cash saving were the gender of household head and family size. Approximately, 38.4 and 27.1% of coffee farmers were food poor based on calorie intake and consumption scores, respectively. Households' participation in saving increases their ability to meet dietary energy requirements and consume diverse foods.Originality/valueTo the knowledge of the author, empirical studies that examined the impact of cash saving on the food security status of smallholder farmers in the study area are limited. Therefore, this study brings original contribution and fills research gap on coffee farmers' cash saving and food security; that received little attention from previous researchers in Ethiopia.

show abstract

Section: Resultssupporting

confidence: 79%

Section: Impact Of Saving On Food Securitysupporting

confidence: 79%

The impact of cash saving on the food security status of smallholder coffee farmers: evidence from southwest Ethiopia

Dinegde

Bekele

Sima

2022

IJSE

View full text Add to dashboard Cite

show abstract

“…For instance, Ali et al (2014) focused on credit constraints, productivity and non-rural farm participation. Muhongayire (2012) focused on the determinants of farmers' participation on formal credit markets while Musabanganji et al (2015) and Mpirwa et al (2018) focused on the institutional factors influencing the decision to take financial credits among smallholder coffee farmers. Mugenzi (2014) focused on access to and utilization of microcredits by farmers, while Musabanganji et al (2015) focused on determinants of access to agricultural credits for smallholder farmers in the Southern Province of Rwanda.…”

Section: Introductionmentioning

confidence: 99%

Determinants of access to agricultural credit among smallholder rice and maize farmers in the eastern and western provinces of Rwanda

Taremwa¹,

Macharia²,

Bett³

et al. 2022

Agro-Sci.

View full text Add to dashboard Cite

Agricultural credit is believed to play a catalytic role in enhancing agricultural productivity; however, its access is limited for smallholder farmers in Rwanda. To investigate this phenomenon, this study sought to identify and assess the determinants of access to agricultural credit among rice and maize smallholder farmers in Rwanda. The study was conducted in the eastern and western provinces of Rwanda using a cross-sectional survey design. Sample districts, sectors, and cells were obtained using stratified random sampling techniques. Convenient and purposive samplings were used to sample households and farmers, respectively. Data were collected using structured interviews and questionnaires, and were analyzed using a binary logistic regression model. Model results indicated that both individual and institutional factors determine access to agricultural credit among smallholder maize and rice farmers in eastern and western provinces of Rwanda. The individualfactors included: saving of money in commercial banks (Adjusted Odds Ratio (AOR) = 2.389), owning a size of land that is 0-0.1 ha (AOR = 0.127), and knowledge of the repayment terms of agricultural loans (AOR = 0.203), while the institutional factors included: having privately-owned finance institutions in the area (AOR = 0.287), offer of both long and short-term loans (AOR = 0.290), interest rate between 11-15% (AOR = 0.178), the process for obtaining agricultural credit not being too long (AOR = 2.026). Institutional factors were more important than the individual farmer characteristics in determining access to credit. Policy interventions aimed at bolstering agricultural credit access among the smallholder farmers should address institutional challenges such as information asymmetry and the lack of credit guarantees that hinder agricultural credit access.

show abstract

“…METHODOLOGY Nyamagabe District is one of the 8 Districts comprising the Southern Province. The reason for the selection of this study area is that compared to other Districts in the Province wheat farming dominates in Nyamagabe District and is grown in nine sectors (Mpirwa et al, 2018). In this study, both quantitative and qualitative data were employed.…”

Section: IImentioning

confidence: 99%

Effect of Social-Economic factors on the Decisions of Small Holder Wheat Farmers to Participate Market in Rwanda

Jeanclaude¹

2020

IJRASET

View full text Add to dashboard Cite

Wheat is an important cash crop in the Rwandan market. The wheat market in Rwanda is made of small and medium holder farmers who are not participating in the market adequately though the attention given by Government to increase the production of wheat. The objective of this study was to examine effect of social economic factors influencing market participation decisions in Nyamagabe District Rwanda. A multi-stage sampling technique was used to select 149 respondents using well-structured questionnaire. Descriptive statistics was used to characterize wheat farmers and compare means of respondents. Probit model was employed to investigate factors influencing market participation decisions among small holder farmers in STATA version 13. The key findings from the probit model revealed that social-economic factors that influenced the decision to participate in wheat market were marital status, education, total land owned (ares), total area under wheat production (ares), total land allocated for other crops (ares), bicycle and mobile phones ownership. The study recommended that in order to increase market participation of wheat farmers there is need to improve on the social economic status of respondents through promoting adult education and focus on the current farmers' strengths and assets.

show abstract

Institutional Factors Influencing the Decision to Take Financial Credits among Small Holder Coffee Farmers in Rwanda

Cited by 3 publications

References 2 publications

The impact of cash saving on the food security status of smallholder coffee farmers: evidence from southwest Ethiopia

The impact of cash saving on the food security status of smallholder coffee farmers: evidence from southwest Ethiopia

Determinants of access to agricultural credit among smallholder rice and maize farmers in the eastern and western provinces of Rwanda

Effect of Social-Economic factors on the Decisions of Small Holder Wheat Farmers to Participate Market in Rwanda

Contact Info

Product

Resources

About