Loan Repayment and Its Implication on Agricultural Financing in Ghana-The Case of MiDA Agriculture Program

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  • Maxwell Amedi*1,
  • Moses Dumayiri2,
  • Suhuyini Mohammed3,
  1. World Vision International, Ghana
  2. Department of Banking and Finance, School of Business and Law, University of Development Studies, Ghana
  3. University of Development Studies, Ghana
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Received: 19-10-2017

Revised: 08-07-2018

Accepted: 26-04-2019

Published in Issue 01-12-2019

How to Cite

Amedi, M. ., Dumayiri, M. ., & Mohammed, S. (2019). Loan Repayment and Its Implication on Agricultural Financing in Ghana-The Case of MiDA Agriculture Program. International Journal of Agricultural Management and Development, 9(4), 391-408. https://oiccpress.com/ijamad/article/view/6976

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Abstract

The study investigated the performance of loan repayment among rice farmers under the MiDA agricultural credit program in the Hohoe Municipality. Primary data was collected from 120 farmers from four beneficiary towns, while secondary data was gathered from literature and various actors. A multistage random sampling technique was used to select the respondents. Obtained data were analyzed using t-test, Tobit regression model.Results from t-test showed statistically significant difference (p < 0.001) between the amount of loan applied for and the amount received by farmers. Out of the ten explanatory variables included in the Tobit regression model, five were significant. Significant factors (p < 0.001) include sex, household size, group size, value of output, and timeliness of loan disbursement.

 

Keywords

  • MiDA,
  • Tobit Regression Model,
  • Loan repayment,
  • Agricultural financing,
  • Rice Farmers
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