AGRICULTURAL CREDIT ACCESSIBILITY AND RICE PRODUCTION IN SAVELUGU-NANTON AND WALEWALE DISTRICTS OF NORTHERN GHANA

Abstract

As Ghana struggles to achieve accelerated growth in food production, increasing the output of rice has become an important goal. The main aim of this study is to find out the determinants of agricultural credit accessibility and its effect on rice output. The study was conducted in four communities in the Savelugu-Nanton District and two communities in the Walewale District. It was aimed at ascertaining the determinants of agricultural credit accessibility and its impact on rice output. In all, a sample of 90 rice farmers was interviewed using a semi-structured questionnaire as well as focus group discussions. Data was collected on the mode of operation of existing credit institutions in the districts, the socio-economic indicators of farmers believed to influence credit accessibility and the inputs and output of farmers in the 2008/2009 farming season.Out of the 90 rice farmers interviewed, only 37 received agricultural credit from Bangmarigu Community Rura Bank and MoFA. In addition, most of the farmers were not aware of the existing credit institutions while others did not access the credit due to high interest rate, small credit size, fear of indebtedness and loweducational status. From the survey, it became known that agricultural credit accessibility is positively influenced by group membership, farm size and gender. Specifically females had greater average of credit than males. The study revealed that, agricultural credit has a significant effect on rice output hence the need to seek for credit to increase production levels. It is recommended that farmers are sensitized on the existence of credit institutions. Also credit institutions should institute measures to reduce interest rate and also make credit acquisition processes and repayment plans simple and flexible.