Smallholder Farmers’ Perception of Agricultural Credit Access and Utilisation in Iyolwa Sub-county, Tororo District.

Abstract

LWANGA KIGGUNDU MUGERWA JOSEPH (2011-M152-20013) Smallholder Farmers’ Perception of Agricultural Credit Access and Utilisation in Iyolwa Sub-county, Tororo District. The study examined the smallholder farmers‟ perception of agricultural credit access and utilisation in Iyolwa sub-county, Tororo district. The major objective of this study was to examine the smallholder farmers‟ perception of agricultural credit access and utilisation, after observing that despite the availability of financial institutions and the agricultural credit facilities they offer, the Smallholder farmers‟ in Iyolwa sub-county, still raised concerns about inadequate finance for agricultural production which clearly indicated lapses in access and utilisation of agricultural credit in this area. The methods of data collection included household survey questionnaires that comprised of perception statements whose reliability (measure of internal consistency) was ascertained using factor analysis and Cronbach‟s Alpha (Cronbach, 1951). Key informant interviews were also conducted with local leaders and financial institution Heads in the study area. The findings revealed that smallholder farmers perceived agricultural credit as a facility for the rich. Further still, farmers perceived that bank pressure during repayment, inadequate collateral, and too much bank documentation were denying them chance to access agricultural credit. The report concludes by giving recommendations with emphasis on creating awareness to change the attitude among smallholder farmers so that they ably access and utilise agricultural credit. Key words: Farmers, Smallholder, Credit, Perception