Impact of agricultural finance on technology adoption, agricultural productivity and rural household economic wellbeing in Ghana: a case study of rice farmers in Shai-Osudoku District

ABSTRACT

This study uses focus group discussion, key informant interview, and quantitative household survey to explore how smallholders access credits and loans influence adoption of modern production technologies and what are perceived limitations to access these financial instruments in the Shia-Osuduku District in the Greater Accra Region of Ghana. The specific objectives of the study are; (1) to assess the challenges rice farmers face in accessing finance, (2) to determine if access to finance impacts the adoption of modern rice production technologies and (3) to determine whether loan investments in improved technologies increase productivity and income levels of farmers. The study noted that issues of mistrust for smallholder farmers by financial institutions act as barriers to facilitating their access to loans and credits. Banks and financial institutions relay their mistrust through actions such as requesting outrageous collateral, guarantors, a high sum of savings capital, and a high-interest rate for agriculture loans, delays, and bureaucratic processes in accessing loans. The study suggested that enabling policy environment and frameworks with a supportive rural infrastructure such as warehouse receipt systems can significantly increase farmers’ access to credit instruments for investment in modern technologies to increase agricultural productivity, which is essential to address issues of food insecurities and rural poverty in Ghana.

KEYWORDS:

• Agriculture Finance
• Credits Instrument
• Improved Technologies
• Loans
• Smallholder Farmers
• Ghana

Acknowledgments

The authors acknowledge Dr. Napoleon Kurantin for supervising the lead author's MA thesis. We credit the map of the study area to Marie Puddister.

Bio-profile of Evans Sackey Teye

Evans holds a Masters in Development Management with specialization in international development from the Ghana Institute of Management and Public Administration in Ghana. He currently works as a development specialist with Solidaridad International Network Organization. He has been involved in policy issues in the cocoa, cereal seeds development and fertilizer sector in Ghana. Notably, the development of Standards for the rice, maize and soya beans value chain with the Ghana Standards Authority, Ministry of food and Agriculture, Ghana Grains Council and Ghana Rice Inter-Professional Body.

Bio-profile of Philip Tetteh Quarshie

Philip is a Ph.D.candidate in Geography with International Development Studies at the University of Guelph, Ontario, Canada. He previously worked as a project management practitioner in international development. His work areas include food security, climate change adaptation, agricultural value chains and market analysis, technology/innovation dissemination, rural livelihood, and sustainable development. His current research explores how upscaling climate-smart agriculture practices among smallholder farmers in developing nations leads to sustainable food systems outcomes.

Data Availability Statement

The data supporting the findings of this study are partly available in this work and attached to the manuscript as supplementing materials. Further enquiries can be directed to the corresponding author(s)

Disclosure statement

No potential conflict of interest was reported by the author(s).

Ethics Declarations

All research was conducted in a manner that does not jeopardize respondents physically, mentally, and socially according to the Ghana Institute of Management and Public Administration students’ research guidelines. Informed consent was sort from every participant before the survey and interview were conducted. The study aimed to understand farmers’ perception of the impact of financial credits on improved planting technologies adoption and agricultural productivity. This research is void of any personal, biological data of respondents.