FINANCIAL INCLUSION AND AGRICULTURAL PERFORMANCE OF SMALLHOLDER FARMS IN MBANKOMO COMMUNITY

What is it about?

The study has attempted to carry-out a comprehensive analysis on the impact of Financial Inclusion on Agricultural Performance among Smallholder Firms in Mbankomo Community. The social and economic gap between the welfare of the rural and urban inhabitants as well as agricultural and white collar job is very alarming in developing countries. To close this gap, this study identifies the different financial services available for farmers; explore the contribution of financial inclusion on agricultural performance and to analyze the constraints face by farmers in production.

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Why is it important?

Methodologically, we make used of Multiple Correspondence Analysis to construct a synthetic indicator for financial inclusion. Considering the control variables, financial inclusion index is regress on agricultural performance through the use of Multinomial probit. The result shows that among a host of financial services, farmers are only aware of access to credit, account operation and mobile money services. Financial inclusion is observed to be strongly correlating with agricultural performance, while result by constraints revealed that, the lack of finances; inadequate farm land and variability in climatic conditions are major challenges to agricultural performance in the Mbankomo community.

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