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Lender Behavioural Characteristics Affecting Agribusiness Loans Default Rate in Agricultural Finance Corporation, Mount Kenya Region
M’Muruku Salesio Miriti,
Mwirigi Rael Nkatha,
Gathungu Geofrey Kingori
Issue:
Volume 8, Issue 4, July 2023
Pages:
122-132
Received:
19 May 2023
Accepted:
9 June 2023
Published:
6 July 2023
Abstract: Farming communities who borrow agribusiness credit from Agricultural Finance Corporation (AFC) require efficient access to credit. Lender behaviour and decisions exhibited in credit supply dynamics influence agribusiness loan default rate. Mount Kenya region has registered a high default rate of 20.33% compared to a standard of 10% for all types of loans in Kenya. Using descriptive research design this, study sought to assess the effect of lender behavioural characteristics on agribusiness loans default rate in the region’s 11 branches and a population of 3,002 agribusiness borrowers. Systematic random sampling technique with an interval of 10 was used to sample 300 respondents. Primary data on lender behavioural characteristics was collected using a structured questionnaire. Statistical Packages for Social Sciences (SPSS V.27) and Stata version 15 were used to analyse data. To estimate the effect of variables in predicting default rate, regression analysis was used. In obtainment of the F-statistic for measuring the adequacy of the regression model, ANOVA was performed. Probit regression model was used to specify the statistical relationship between the variables. The four indicators used in the model explicated 48.80% of the dependent variable. Lender behavioural characteristics that were considered in the study had significantly affected AFC loan default rate at 1% level. The p-values of the pointers of lender behavioural characteristics for farm visit, disbursement timeliness, political lending and adequate funding (0.003,0.000,0.000,0.000) respectively were less than the p-value of 0.01. The negative coefficient (-0.355) of farm visit meant that lenders effort in visiting farmers would reduce default rate in AFC loans. However, the coefficient of disbursement timeliness, political lending and adequate funding had a positive coefficient implying a negative effect that increased AFC loans default rate. To mitigate default, credit officers need to disburse adequate loan expeditiously, refuse to yield to political interference and adhere to stipulations of lending policy. The study recommends that AFC should adequately and timely fund supervised borrower projects and own those projects by extending advisory and training inputs even as they embrace a neutral working environment that is free from political manipulation, compromise and influence.
Abstract: Farming communities who borrow agribusiness credit from Agricultural Finance Corporation (AFC) require efficient access to credit. Lender behaviour and decisions exhibited in credit supply dynamics influence agribusiness loan default rate. Mount Kenya region has registered a high default rate of 20.33% compared to a standard of 10% for all types of...
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The Effect of Climate Change on Wheat and Maize Crops in Egypt
Ahmed Mahmoud Abd El-Aziz,
Aml Ahmed Swefy,
Mohamed Refaat Mohamed
Issue:
Volume 8, Issue 4, July 2023
Pages:
133-145
Received:
6 June 2023
Accepted:
25 June 2023
Published:
11 July 2023
Abstract: The research aimed to identify the development of each of the maximum and minimum temperature and relative humidity of the winter and summer seasons in Egypt and their stability during the period (2000-2021), and the extent of the impact of this development on the feddan productivity of wheat and maize crops in Egypt, and the consequent economic effects. Among the results, the productivity of a feddan of wheat crop decreased by 0.05 tons, with an increase in the maximum temperature in the winter season by one degree Celsius, The productivity of a feddan of the wheat crop decreased by 0.06 tons, with an increase in the minimum temperature in the winter season by one degree Celsius, It also showed a decrease in productivity, The feddan of the wheat crop increased by 0.02 tons, with an increase in relative humidity in the winter season by 1%. The results also showed a decrease in the productivity of the feddan of the maize crop by 0.06 tons, with an increase in the maximum temperature in the summer season by one degree Celsius, and the productivity of the feddan crop decreased. maize by 0.05 tons, with an increase in the minimum temperature in the summer season by one degree Celsius. It also showed a decrease in the productivity of a feddan of maize crop by 0.03 tons, with an increase in relative humidity in the summer season by 1%. The study recommended an increase in spending on agricultural research to develop cultivars. New crops that are able to adapt to climate changes, the Agricultural Extension Agency raises the level of awareness of wheat and maize farmers in order to take the necessary measures to confront climate changes by holding training courses for them, and reconsider changing the planting dates of the two crops in proportion to providing them with climatic needs.
Abstract: The research aimed to identify the development of each of the maximum and minimum temperature and relative humidity of the winter and summer seasons in Egypt and their stability during the period (2000-2021), and the extent of the impact of this development on the feddan productivity of wheat and maize crops in Egypt, and the consequent economic ef...
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Assessments of Coffee Seedlings and Seed Production Challenges and Opportunity in Jimma Zone South West Ethiopia
Issue:
Volume 8, Issue 4, July 2023
Pages:
146-151
Received:
24 June 2023
Accepted:
20 July 2023
Published:
26 July 2023
Abstract: The most important agricultural product is coffee seed production, which requires a lot of labor and time Coffee seed production is essential to the economies of over 70 countries and is the main source of income for millions of people worldwide. Despite Ethiopia having the largest share of production and economic output, the value of coffee exported from Africa, and particularly Ethiopia, has dropped over time due to a lack of sustainability and low competitiveness of the sub-sector at the national and international market. Coffee, which makes up the lion's share of Ethiopia’s total economic production, has been and continues to be the country's main source of foreign exchange revenues. Despite its significance, the coffee industry encounters a number of challenges in Jimma zone south west Ethiopia, including:- high cost of production of seed and seedlings low productivity and disease. Quality seed distributors, cost of farm tools, cost of inputs lack of processing tools, the cost, and availability of other inputs, cash constraints, weather predictions, and the cycle of seeder placement times; The agricultural crew's skills should be improved strengthening the skills of agricultural workers at all levels, particularly DAs, seed producers. This assessments paper is therefore an attempt to share experiences on the current status of coffee seed and seedlings production cost system. It also presents the challenges, opportunities and future directions for effective and efficient coffee seed and seedlings systems in Jimma zone.
Abstract: The most important agricultural product is coffee seed production, which requires a lot of labor and time Coffee seed production is essential to the economies of over 70 countries and is the main source of income for millions of people worldwide. Despite Ethiopia having the largest share of production and economic output, the value of coffee export...
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Effect of Women Empowerment in Agriculture on Household Food Security Index in Benin
Judith Urielle Tossou,
Charlemagne Babatoundé Igue
Issue:
Volume 8, Issue 4, July 2023
Pages:
152-160
Received:
3 November 2022
Accepted:
25 November 2022
Published:
26 July 2023
Abstract: In Benin, the agricultural sector occupies at least 70% of the labour force, contributes nearly 36% of GDP formation and provides about 88% of Benin's export earnings (MALF, 2018). The study on the Comprehensive Food Security and Vulnerability Analysis (CFSVA, 2017) showed that 10% of the population investigated were food insecure. Women represent 51.2% of the population in Benin according to the fourth General Population and Housing Census (RGPH4, 2013). But there is slightly more food insecurity among female-headed households (12%) than their male counterparts (9%), especially in rural areas (CFSVA, 2017). In solving the problem of food insecurity among women in Benin, this research examined the effect of women empowerment in agriculture on household food Security in Benin. This research aims also to determine factors that affect household food Security in Benin. The data used comes from the Global Analysis of Vulnerability and Food Security survey (CFSVA, 2017). The results of the logistic regression model estimation show that the factors that affect significantly household food Security Index in Benin are: women's empowerment index in agriculture, level education, urban rural and land size. The results show also that women's empowerment index in agriculture is positively correlated with food security index. Thus, the likelihood of a household being food security increases when women's empowerment in agriculture increases. Women's agricultural empowerment increases the household food security index by 3.97 percentage points. The results point to the very important role of women's agricultural empowerment in solving food insecurity in rural Benin.
Abstract: In Benin, the agricultural sector occupies at least 70% of the labour force, contributes nearly 36% of GDP formation and provides about 88% of Benin's export earnings (MALF, 2018). The study on the Comprehensive Food Security and Vulnerability Analysis (CFSVA, 2017) showed that 10% of the population investigated were food insecure. Women represent ...
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Assessment of the Factors Influencing the Irish Potato Producers’ Market Channel Choice in Rwanda: A Case of Study Musanze District
Faustine Dusabe,
Patrick Mulyungi,
Eucabeth Majiwa
Issue:
Volume 8, Issue 4, July 2023
Pages:
161-167
Received:
26 March 2022
Accepted:
14 April 2022
Published:
15 August 2023
Abstract: Agriculture plays an important role in the economic growth and development prospects of a vast majority of developing countries including Rwanda. Market channel choice makes important contributions to the incomes and other livelihood attributes among smallholder farmers in these countries. The main aim of this study was to assess the factors influencing the Irish potato producer’s to choice a market channel in Rwanda. A case study Musanze District. A multistage sampling procedure was specifically used to select Musanze district form five composed Northern Province. Four Irish potato producers in each village were randomly selected using simple random sampling to give a total sample size of 209 respondents interviewed in study area. Both descriptive statistics and the multinomial logistic regression model were used to analyse data that was collected from Irish potato producers in study area. The results of the study showed that the majority of respondents were male. The findings showed that the majority of respondents are in range 46-55 years followed by the range of 56 years. The result of Multinomial Logit regression analysis showed that education level, household size, land size, and the quantity produced were significant at p< 0.01 to influence Irish potato producers to choice direct consumer as market channel. However, the results also showed that also five variables such as age, land size, quantity produced, price of produce as well as mode of payment had positive and significant influence on the Irish potato producers to choose retailers as market channel. Lastly, seven factors namely gender, education level, household size, farming experience, quantity produced, quantity sold, and price of produce were found to be positive and had significant influence on the Irish potato producers to choose other markets as market channel. Based on the findings from this study, the researcher recommended that adequate market information should be provided to the Irish potato producers through existing sources such as extension officers, agronomist, local authorities, and associations/cooperatives as well as to increase producer’s income and improve their livelihood.
Abstract: Agriculture plays an important role in the economic growth and development prospects of a vast majority of developing countries including Rwanda. Market channel choice makes important contributions to the incomes and other livelihood attributes among smallholder farmers in these countries. The main aim of this study was to assess the factors influe...
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