Department of Agricultural Economics and Extension

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Factors affecting smallholders access to Agricultural credit in Nkonkobe Local Municipality in the Eastern Cape, South Africa
(University of Fort Hare, 2015-06) Dlikilili, Xolela
South Africa has a large proportion of its population residing in rural areas and are, in one way or the other, involved in some agriculture-related activity. However, majority of the disadvantaged farmers are not part of the mainstream agriculture and practice subsistence agriculture in overcrowded, semi-arid areas in the former homelands. Farmers' limited access to agricultural credit facilities is one of the major factors responsible for the declining agricultural productivity for smallholder farming. The study therefore, aims to identify determinants of access to agricultural credit among smallholder farmers in the Nkonkobe Local Municipality of the Eastern Cape Province of South Africa. Data were obtained from 214 farmers using administered structured questionnaire in the 2015 production season. Regarding selection of respondents, a simple random sampling technique was employed. Descriptive statistics, correlation analysis, as well as binary logistic regression model were analytical techniques used in analyzing the data. Results from the analysis showed that credit use is very minimal.