The role of agriculture loan schemes and agriculture production by the beneficiaries in Uganda

Abstract

The purpose of the study was to establish the relationship between Agriculture loan schemes and Agriculture production by the beneficiaries in Nyakabirizi Division Bushenyi–Ishaka Municipality Uganda. The research was based on three objectives; to examine the role of agricultural credit facility towards agricultural production, to examine the role of group and individual loan towards agricultural production, to evaluate the role of rural farmers loan scheme and agricultural production. The researcher used; case study, quantitative, qualitative and cross sectional designs. The quantitative approach was used to describe operations, processes, and characteristics of agriculture loan schemes so as to know social aspects that prevailed in the area which had influence on the study. The quantitative approach was used to determine the relationship between variables by testing their hypothesis. The study was carried out on the cross sectional design by use of respondents from which data of the study was generated with in planned few days by the guide of research questions that were answered. Literature was reviewed to supplement and support the research findings. Mainly Text books, Academic journals, Academic articles and Internet were used as the major sources of the literature. The findings of the study were compared to the literature to see if they occur or not. A total of 41 questionnaires were distributed to the potential farmers in Nyakabirizi Division, this was followed by data analysis to determine the role of agriculture loan schemes and agricultural production. The findings of the study indicated that the schemes greatly lead to agriculture production through improving loan accessibility, loan extension services, offering of subsidized loans, favorable loan period payments that lead to agriculture productivity in the area. The study findings guided the recommendations to be made for government and PFIs which include; improving of agriculture value chain, development of new credit products, revision of loan interest rates, and provision of uncollateralized loans. It finally ended with the suggestions to future researchers on agricultural loan schemes and conclusions.