The effects of rural banks’ credit scheme on small-scale food crop farming in Ghana: a case study of the Jomoro Rural Bank
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Date
2009-11-17
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Abstract
The establishment of rural banks in Ghana among other reasons was to re-enforce the government’s commitment to rural credit as part of a national strategy to improve agriculture and the living conditions of rural farms. Thus, the established banking scheme was to assist the rural people particularly small-scale farmers to find solutions to rural credit problems thereby increasing their Agricultural yield
It is in the light of this that the study sought to find out the effects of the Jomoro Rural
Bank’s credit scheme on small-scale food crop farming in the Jomoro District in, the Western Region of Ghana.
The basic hypothesis underlying the study is that there is a significant relationship between the credit scheme of the Jomoro Rural Bank and food crop production in the Jomoro District. Data was collected using questionnaire and interviews from the Jomoro Rural Bank and 200 sampled customers of the bank who are farmers.
The study revealed that credit to farmers who are customers of the bank has no direct relationship with their output. The various individual production schedules buttress this assertion and all other things being equal, the food producers who are customers of the bank never saw improvement in their income levels and standard of living during the six year period (i.e. 2001 - 2006).
It was however recommended among other things that if farmers would benefit from the credit scheme of the bank, and to increase their agricultural production, then the amount given to them as credit should be increased so as to ensure the implementation of economic ventures in the Jomoro District.
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A thesis presented to the School of Graduate Studies
Kwame Nkrumah University of Science and Technology in partial
fulfilment of the requirements for the award of Executive Master of Business Administration (EMBA) degree, 2009