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Group-Based Credit Re-payment: Evaluation of Factors for Default Among Smallholder Farmers in Nakuru District, Kenya
Richard O. Akuno Nyang’aya,
George Owuor,
Emilly Moraa,
David O. Ayieko
Issue:
Volume 1, Issue 1, May 2016
Pages:
1-9
Received:
29 February 2016
Accepted:
16 March 2016
Published:
14 April 2016
DOI:
10.11648/j.ijae.20160101.11
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Abstract: Agriculture contributes 23% to the Gross Domestic Product (GDP) of Kenya and is practiced by 80% of the rural population. At least 50% of smallholder farmers are constrained in accessing quality inputs due to inadequate credit. In addition most farmers default on the repayment of loans. Therefore this study aimed at determining the level and determinants of default in payment of loans among the farmer group members in Nakuru. The study used a multi stage sampling technique to sample 50 farmer group members. The data was collected using a pretested questionnaire and the data analysed using descriptive and qualitative methods. The results of the Logit regression showed that the default in repayment of loans is significantly affected by the level of education, age of the group, farm income and interest rate. Therefore it is recommended to increase farmer group trainings, adopt technologies to raise production and reduce interest rates on loans.
Abstract: Agriculture contributes 23% to the Gross Domestic Product (GDP) of Kenya and is practiced by 80% of the rural population. At least 50% of smallholder farmers are constrained in accessing quality inputs due to inadequate credit. In addition most farmers default on the repayment of loans. Therefore this study aimed at determining the level and determ...
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Technical Efficiency and Its Influencing Factors of Farmers’ Meat Sheep Production in China: Based on the Survey Data of Farmers
Xuejiao Wang,
Haifeng Xiao
Issue:
Volume 1, Issue 1, May 2016
Pages:
10-15
Received:
6 April 2016
Accepted:
20 April 2016
Published:
9 May 2016
DOI:
10.11648/j.ijae.20160101.12
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Abstract: Although both meat sheep stocks and mutton yield in China are ranked as the first largest in the world, we observe that meat sheep is not produced with full technical efficiency in the country. A review of existing literature reveals that so far little attention has been given by the researchers in investigating the efficiency of Chinese meat sheep production with micro data on household. Thus, the main objective of this paper is to analyze the technical efficiency of meat sheep production in China using data from 204 meat sheep-rearers. We employ the Translog Stochastic Frontier Production function approach and Technical Efficiency Loss Model respectively. Results indicated that technical efficiency of meat sheep in China is 34.37%. It is also found that education level, scale farming, percent household income from meat sheep, government support and training experience are positive and significantly related to technical efficiency. Although family size has a significant negative impact, it is minimal.
Abstract: Although both meat sheep stocks and mutton yield in China are ranked as the first largest in the world, we observe that meat sheep is not produced with full technical efficiency in the country. A review of existing literature reveals that so far little attention has been given by the researchers in investigating the efficiency of Chinese meat sheep...
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Financial Intermediation and Agricultural Output in Nigeria: An Impact Analysis of Deposit Money Banks’ Credit
Ali Jude Igyo,
Jatau Simon,
Ekpe Mary Jane
Issue:
Volume 1, Issue 1, May 2016
Pages:
16-25
Received:
21 April 2016
Accepted:
4 May 2016
Published:
28 May 2016
DOI:
10.11648/j.ijae.20160101.13
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Abstract: The study examined the impact of deposit money banks’ credit on agricultural output in Nigeria from 1981 to 2014.Secondary data for the study was obtained from Central Bank of Nigeria. The ordinary least square method was used for data analysis. Unit root was used to test for data stationarity, while Variance Inflation Factor (VIF) and Heterosckedasticity white Test were used for data diagnosis. Findings of the regression analysis revealed that deposit money banks´ credit significantly and positively affected agricultural output while the result for Deposit Money Banks’ lending rate (DMBLR) shows that DMBLR has an inverse and insignificant impact on Agricultural output (AQ). Also the trend in the Deposit Money Banks’ credit to the agricultural sector has contained in the CBN bulletin increased considerably within the period under study. There was, however, a sharp decline in loan stock in 2007. Thus, the study concludes that Deposit Money banks’ credit is a viable source of finance for sustainable growth in the agricultural sector. The study therefore recommends that Deposit Money banks’ should increase the volume of credit facilities to the agricultural sector to sustain food production for the teeming population of Nigeria; they should however concentrate on the real farmers. Also the cost of Deposit Money banks’ credit facilities should be subsidized or be reduced to a single digit lending rate for agric. businesses and should have a longer moratorium to ensure effective performance of both agricultural output and the credit facilities.
Abstract: The study examined the impact of deposit money banks’ credit on agricultural output in Nigeria from 1981 to 2014.Secondary data for the study was obtained from Central Bank of Nigeria. The ordinary least square method was used for data analysis. Unit root was used to test for data stationarity, while Variance Inflation Factor (VIF) and Heterosckeda...
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