Global Advanced Research Journal of Agricultural Science (GARJAS) ISSN: 2315-5094

March 2013 Vol. 2(3): pp. 088-102

Copyright © 2015 Global Advanced Research Journals

 

Full Length Research Paper

Access to Micro credit and its Impact on Farm Profit among Rural Farmers in Dryland of Sudan

Abdelateif Hassan Ibrahim1*2 and Siegfried Bauer1

 

[1]  Institute of Project and Regional Planning, Justus Liebig University of Giessen, Germany

2 Department of Agric-Economics and Rural Development, University of Kordofan, Sudan

*Corresponding author’s Email: Abdelateif.Ibrahim@agrar.uni-giessen.de;

lateif73@hotmail.com

Accepted 10 March, 2013

 

Abstract

Despite the efforts that have been made by government and NGOs to provide credit for rural farmers, yet credit is lacking where it is most needed. This study is primarily intended to assess the access to credit problem that persists in dryland of Sudan, taking North Kordofan as case in point. In addition, it tries to sort-out factors influencing the profit of farmers from agriculture. The study relies on filed survey that is conducted in 2009, using structured questionnaire. It surveyed 200 farm households, which were selected through a multi-stage random sampling technique. Descriptive statistical analysis and Heckman model were applied to analyze the data. Results showed that, farm profits for all categories were SDG 920 (100 SDG ≈ 18 €). The credit users were found to be better off with a profit ofSDG 955 compared to SDG 882 for credit non-users. Results obtained from a probit model showed that savings, value of assets and incomes are significant variables determining the credit constrained conditions. In addition, the results of Heckman model showed that credit has limited effect on farm profits. This indicates that loan volumes may be too small for making a significant impact on farm production. Knowing the fact that using OLS for testing the parameters produces a bias in sample, the study used the Heckman model to correct the expected biases. The study suggests that in order for the farm profits to be improved, the agricultural investment should be improved, particularly the adoption of efficient and sustainable technology. This could be possible through increasing the loan amount with faultless repayment records.

Keywords: Micro credit, Farm profits, Heckman model, Credit conditions, Poverty.


 

Related Articles


Original Research Articles
Ojuku Tiafack
Peasant Farmers and Insecurity in the Country Side: Experiences of Market Gardeners in the South West and North West Regions of Cameroon
Glo. Adv. Res. J. Agric. Sci. December 2016 Vol: 5(2): - [Abstract] [Full Text - PDF] (790 KB)
Ihenacho RA, Chikaire J, Ejiogu-Okereke N, Oguegbuchulam MN, Osuagwu CO and Obi KU.
Empowerment Strategies of Cooperative Societies for Poverty Reduction Among Members in Aboh Mbaise Area of Imo State, Nigeria.
Glo. Adv. Res. J. Agric. Sci. October 2012 Vol: 1(8): - [Abstract] [Full Text - PDF] (136 KB)
Sanaa Abusin
Dynamic deterrence analysis of factors affecting the management of Sudan’ fishery.
Glo. Adv. Res. J. Agric. Sci. February 2014 Vol: 3(2): - [Abstract] [Full Text - PDF] (200 KB)
Asad Sarwar Qureshi and Shoaib Ismail
Improving agricultural productivity by promoting low-cost irrigation technologies in Sub-Saharan Africa
Glo. Adv. Res. J. Agric. Sci. July 2016 Vol: 5(7): - [Abstract] [Full Text - PDF] (845 KB)
Dr Sarah Wali Qazi, Prof Aurangzeb, Saima Hussain
Microfinance Effective in Generating Opportunities and Mitigating Poverty in Pakistan
Glo. Adv. Res. J. Agric. Sci. October 2015 Vol: 4(9): - [Abstract] [Full Text - PDF] (133 KB)
Review
James Keeley and Adam Kess
Monetary Integration Thirteen Years of Dollarization on Ecuadorian Economics 2000 to 2013
Glo. Adv. Res. J. Agric. Sci. January 2013 Vol: 2(1): - [Abstract] [Full Text - PDF] (776 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Abdelateif Hassan Ibrahim on Google Scholar
Abdelateif Hassan Ibrahim on Pubmed
Siegfried Bauer on Google Scholar
Siegfried Bauer on Pubmed

Statistics

Viewed 1418
Printed 306
Downloaded 2375
Powered By iPortal Works