Abstract:
The provision of credit to farmers is widely perceived as an effective strategy for promoting the adoption of improved technologies by rural farm households. It is believed that access to credit promotes the adoption of risky technologies through the relaxation of the liquidity constraint as well as through the boosting of households risk bearing ability. The study aimed to analyse the effects of credits accessibility for small farmers in Rwanda: Evidence from Irish potato growers in Musanze District, Northern Province in Rwanda. Multistage sampling techniques were used to select 212 respondents using a structured questionnaire. Descriptive statistics were used to characterize farmers and T-test were used to compare means of credits users and non-credit users. Statistical Package for Social Sciences (SPSS 16.0), STATA 13.0 and Ms Excel were used to analyse data. An econometric model was applied to estimate the data using STATA version 13. Propensity score matching (PSM) model was used to analyse determinants and effects of credits accessibility for smallholder farmers in Musanze District, Rwanda. The key findings from Propensity score matching model revealed that the seasonal NPK usage in Irish potato production ranges from 163Kg/ha to 188.89Kg of NPK and the effect increased from 10.91Kg to 39.63Kg for treated and control group using NNM, KM and RM. The study results also concluded that the yearly cost needed to buy NPK was 70,685Frws/ha and the mean difference was ranged from
95,491Frws/ha to 102,979Frws/ha For pesticides use, the intra seasonal quantity of pesticides used was ranged from 4.69Kg to 5.96Kg/ha per season and seasonal mean
difference was ranging from 0.181Kg to 1.63Kg. The total cost invested in pesticides purchasing value was 28, 989Frws with the mean difference ranging from 12,232Frws to 14,117Frws between treated and control groups. The study findings
showed that seasonal Irish potato production was ranging from 7295.12 Kg/ ha to 8113.25kg/ha and the mean difference for credits users and non credits users was
varying from 790.40Kg/ha to 871.79Kg/ha in 2017A and from 691.31Kg/ha to 1091.99Kg/ha in season of 2017B. Moreover, the study findings concluded that the seasonal farmer’s revenues from Irish potato production was ranging from 1,216,962Frws/ha to 1,230,585Frws/ha and the mean difference as program impact for credits users and non credits users was varying from 181,001Frws/ha to 313,787Frws/ha in 2017A and in 2017B, the mean difference (program impact) ranged from 313,787 Frws/ha to 375,569Frws/ha. Therefore, future studies should also focus on the spill over effects of credits program interventions among the low and high-income households participating in such credits schemes
