Evaluation of the agricultural credit scheme as a means of agricultural development with special reference to Nkoranza Sub-Region, in the Brong Ahafo Region Ghana

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Agricultural credit and subsidies for farmers were thought of as far back as in the 1960’s. The seven years development plan proposed that management of the credit scheme was to be done by Bank of Ghana which will use the facilities of the local Commercial Banks to execute the credit scheme. Technical advice as to the feasibility of farming proposals put up to the Bank, as well as supervision of the use of agricultural credits, will be a function of the Extension and Development officers. Credit is given in the form of seed and stock distribution schemes, cash for purchase of fertilizer and insecticides as well as individual purchases of farm equipment and for the construction of farm buildings. The purpose of the scheme is to ensure increased gricu1ttral production. To this end credits are channelled through co-operative societies, except in the case of very large agricultural investment schemes which are to be dealt with on individual basis. The operation of such a scheme is very important, in view of the important role agriculture plays in the national economy. Nkoranza sub-region has been chosen as the study area because majority of the people are agricultural and rural. Also, the credit scheme has been in operation since its introduction in the country. The sub-region is in the transitional zone where mechanised agriculture could be practised however, the government realized this could be dined only if the people can afford it. In view of the average low income of the people (¢7,000.00 per annum) in the area, alternative solution to this problem of capital lies in the provision of credit to the farmers - hence: the scheme. It was hoped that with the scheme, substantial increase in productivity could be realized, all things being equal; but this was found not to be the case. Therefore, having evaluated the operation of the credit scheme in the sub-region, suggested proposals on how best to carry out the scheme to increase agricultural production.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the award of the Degree of Master of Science in Regional Planning, 1984