Abstract
Agricultural investment in low- and middle-income countries faces credit access challenges. Several financial institutions, particularly banks, normally impose some conditions where the possession of a land title deed is required to access agricultural credits. This paper examines whether, and to what extent, rural agricultural land ownership influences agricultural credit access for rural farmers in Tanzania. The study focuses only on rural farmers and tries to find out whether these smallholder farmers can use their land, which is largely unformalized, as a collateral for credit access. The study survey was cross-sectional, using quantitative data collected in December 2017 to March 2018 from 750 farming households in four districts (Uvinza, Kigoma, Kibondo, and Kasulu) in Kigoma region, Tanzania. Binary logistic regression analysis (logit model) was used to identify factors associated with credit access among landowners, adjusted by demographic characteristics (gender and educational background), as they can independently influence access to credit. A p-value of <0.05, at a 95% confidence interval (CI), was considered statistically significant. The findings show that having a land title deed and owning a surveyed land were five and twice associated with agricultural credit access. The study also found that sex determined who could likely access agricultural credits, as males are more advantaged than female counterparts in owning land that can be used as collateral. This paper concludes that access to agricultural credit is assured for rural farmers in Tanzania as long as a farmer possesses a land title deed.
Recommended Citation
Rubakula, Gelas
(2024)
"Nexus Between Rural Agricultural Land Ownership and Agricultural Credits Access: A Case of Tanzania,"
Journal of Humanities and Social Sciences: Vol. 13:
No.
2, Article 17.
DOI: 10.56279/13/2/6
Available at:
https://commons.udsm.ac.tz/jhss/vol13/iss2/17