The impact of agricultural loans on small scale farmers’ output (a case study of Gomba district)
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Date
2019-08
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study explored the level of success recorded in assisting rural farmers to increase agricultural output in Gomba District. The general objective of this study was to find out the relationship between agricultural output, agricultural loans and employment rate in Gomba District and the specific objectives were to determine the behavior of agricultural loans in Gomba district and to determine the behavior of agricultural outputs in Gomba district.
The research hoped to help the district planning unit for policy making with the relevant information regarding the issues of agricultural output and prioritize different areas and mark necessary resources accordingly. The data used was majorly from secondary sources and it was official especially from government publications and other government Institutions from MAAF and Central Bank. Data was organized, processed and summarized using SPSS, 16.0 and stata 12. Stata-12 and SPSS, 16.0 software was used because they had the capacity to handle large database and since they have command and menu intensive. The study revealed that there was a positive trend in the behavior of agricultural loan. However, the study showed that there was a positive trend that was not perfect in that there was slight change of loans issued out to the farmers holding other factors constant. The study also found out that there was a positive trend on the behavior of Agricultural output. The smallholder farmers were found to be constrained by lack of capital and ignorance on how to apply for existing agricultural loans. Furthermore the study revealed that there was a positive relationship between agricultural output, agricultural loans and employment rate. This implies when the government increases agricultural loans, farmers in Gomba District are likely to influence greater improvement in their agricultural yields or output. As the agricultural loans increases, farmers in Gomba get more income to invest into agriculture sector thus improving on their outputs. The study recommended that the government
The government should sensitize the farmers on how to apply and get loans. This is because the study revealed that an increase in government loans leads to an increase in agricultural output
The government should reduce on the costs of the agricultural inputs such as fertilizers, tractors among others. This will help the farmers to increase on their agricultural yields and that government should put more emphasis on extending agricultural loans to farmers since the study revealed that an increase in agricultural loans increases agricultural output.
Description
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirement for the Award of the Degree of Bachelor of Science in Statistics of Kampala International University
Keywords
Agricultural loans, Small scale farmers’ output, Gomba district