The role of access to credit on household welfare among small-holder maize farmers in Aromo Sub County, Lira District

Abstract

This study was conducted in Northern Uganda with research entitled “The role of access to credit on household welfare among small-holder maize farmers” case study being Aromo sub county in Lira district. The main objective of the study is to examine the effect of access to credit on the household welfare of small-holder maize farmers in Aromo sub county, Lira District, Uganda. The Specific objectives were: (i) To determine household characteristics that influence their access to credit. (ii)To examine the factors that affect access to credit to small holder maize farmers. (ii)To examine the effect of access to credit on household welfare, specifically in terms of yield productivity and income. Case study research design was used however qualitative research method approach was used which includes non-numerical data tools such as interviews. For the study’s primary data, a survey questionnaire method was used. A questionnaire was designed containing clear targeted questions for example, objective and multiple-choice questions. Interviews will be face-face, and the forms will be filled by the researcher not the respondent. This will enhance collection of data relating to demographics, yield productivity and income of the small-holder maize farmers. The findings show that several variables that significantly influenced the credit access are the duration of time spent in maize farming, the proportion of income derived from maize production, the number of members in farm work, average income, land ownership, years in maize farming, and acres of maize all played notable roles in shaping the credit access. Furthermore, the duration of time spent in maize farming and the proportion of income derived from maize production were found to have statistically significant effects on the credit effect. These findings suggest that experience in maize farming and a higher reliance on maize income were associated with positive credit effect on welfare. The study goes ahead and recommends some solutions such as Promoting Skill Development and Experience in Maize Farming: Encouraging farmers to gain more experience and knowledge in maize farming by providing training programs, workshops, and resources. These will help improve farming techniques, risk management strategies, and overall productivity, leading to a positive credit impact. Collaboration with agricultural extension services and farming organizations can be beneficial in offering such training opportunities.