Impact of access to credit on farm income: policy implications for rural agricultural development in Lesotho

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dc.check.date2020-01-05
dc.check.infoAccess to this article is restricted until 18 months after publication by request of the publisher.en
dc.contributor.authorDonkor, Emmanuel
dc.contributor.authorOgundeji, Abiodun A.
dc.contributor.authorMotsoari, Charmaine
dc.contributor.authorOnakuse, Stephen
dc.date.accessioned2018-07-27T08:51:32Z
dc.date.available2018-07-27T08:51:32Z
dc.date.issued2018-07-05
dc.date.updated2018-07-27T08:42:14Z
dc.description.abstractIn this era of rapidly increasing food demand, a sustainable food supply is required to meet such demand. This suggests that capital investment through adequate access to credit is needed to develop the agricultural sector in developing countries including Lesotho. Therefore, this paper examined farmers’ access to credit and its impact on farm income using a three-stage model, namely: Probit, Tobit, and propensity score matching. The study was conducted in Lesotho with a sample size of 100 farmers. The empirical results reveal that access to credit increases net farm revenues by US$116.608 to US$136.894. Furthermore, savings, scale of production, membership of farmer associations and financial record keeping exert significant positive effects on access to credit, while higher interest rates reduce farmers’ likelihood of securing credit from a financial institution. We conclude that adequate access to credit is necessary to promote a sustainable agricultural development and the livelihoods of rural farmers in Africa.en
dc.description.statusPeer revieweden
dc.description.versionAccepted Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.citationOgundeji, A. A., Donkor, E., Motsoari, C. and Onakuse, S. (2018) 'Impact of access to credit on farm income: policy implications for rural agricultural development in Lesotho', Agrekon, 57(2), pp. 152-166. doi:10.1080/03031853.2018.1483251en
dc.identifier.doi10.1080/03031853.2018.1483251
dc.identifier.endpage166en
dc.identifier.issn0303-1853
dc.identifier.issn2078-0400
dc.identifier.issued2en
dc.identifier.journaltitleAgrekonen
dc.identifier.startpage152en
dc.identifier.urihttps://hdl.handle.net/10468/6505
dc.identifier.volume57en
dc.language.isoenen
dc.publisherTaylor and Francis Group (Routledge)en
dc.rights© 2018, Agricultural Economics Association of South Africa. This is an Accepted Manuscript of an article published by Taylor & Francis in Agrekon on 5 July, 2018, available online: https://doi.org/10.1080/03031853.2018.1483251en
dc.subjectCrediten
dc.subjectAgricultural developmenten
dc.subjectLesothoen
dc.subjectCrediten
dc.subjectPropensity score matchingen
dc.subjectProbiten
dc.titleImpact of access to credit on farm income: policy implications for rural agricultural development in Lesothoen
dc.typeArticle (peer-reviewed)en
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