Effects of Agriculture Loans on Farmer Group Sales in Uganda
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The study examined the influence of access to agricultural services on maize farmer group sales in Uganda It was motivated by the fact there are low maize sales and yet the government had continuously increased funding to the agricultural sector through providing agricultural services to the maize farmers. The study analyzed the access to credit services, maize output quality and market shares and their influence on maize sales. Using the multiple linear regression analysis and the Uganda Census of Agriculture 2008/2009 data, collected by the Uganda Bureau of Statistics (UBoS), we found that access to credit services leads to an increase in maize farmer sales, access to good quality output of sales increase maize productivity and the higher the market shares, the higher the maize sales and most maize farmers do not know how agricultural insurance helps to improve farmer sales. On the basis of these observations, we recommended that there is need for government to strengthen measures for farmers to access credit through farmer membership groups, VSLS, farmer banks, need by government to employ more extension workers to cover the largely unreached areas at the village levels and the central government should work together with the local governments should sensitize more about the outputs that can be produced with maize as an input to increase its market shares in the country. Keywords: Credit; Extension; Market; Maize productivity, agricultural insurance.