THE IMPACT OF MICROFINANCE SCHEMES ON DRY SEASON FARMERS: A CASE STUDY OF DRY SEASON FARMERS IN THE BAWKU MUNICIPALITY

Abstract

The impact micro finance schemes have on dry season farmers was carried out in the Bawku Municipality. The objective was to obtain information on the impact of these credit schemes on the livelihood of beneficiary dry season farmers. Purposive and simple random sampling techniques were used to obtain data which were then analysed using Special Package for Social Scientists (SPSS). Also Secondary data from micro-finance institutions were used. The study made in-depth research on the kind of services dry season farmers in the Bawku Municipality benefits from the microcredit schemes operating in the area and the impact these products have on the livelihood of these farmers. The study realised that despite the visible increment in advancement of credit to dry season farmers, there were minor operational lapses: the loans given to the farmers were inadequate to start and run any viable farming activity. Lack of formal education, time, improved technology and ready market for products, which often run down rural enterprises, still persisted thereby hindering the farmer ' s current productivity relative to their evident potentials. This notwithstanding, it came out from the research that dry season farmers who benefited from micro-credit are able to improve on their dry season farm activities and had increase their productivity tremendously. This has resulted in a significant improvement in their livelihood and those of their households as a whole. It is therefore recommended that the amount of credit advanced to dry season farmers be increased and skill training be made part of the credit scheme to enable the farmer fully benefit from the facility. It is also recommended that the interest on the credit should be reduced and the process of acquiring the credit made farmer friendly to attract more farmers to the scheme.