Analyzing agricultural financing for resettled farmers in Zimbabwe: the case of targeted Command Agricultural program in Mutare District
- Mafirakurewa, Tariro https://orcid.org/0009-0000-6587-4524
- Authors: Mafirakurewa, Tariro https://orcid.org/0009-0000-6587-4524
- Date: 2023
- Subjects: Agricultural administration--Finance , Farmers -- Zimbabwe , Agriculture -- Economic aspects
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/28255 , vital:73985
- Description: Agriculture plays a paramount role in the economy of many countries including Zimbabwe where more than 70 percent of the population depends on agricultural activities for their livelihoods. Smallholder farmers’ access to agricultural credit is vital for the development and growth of Zimbabwe’s agricultural sector, hence agricultural financing is crucial in rural development. Despite the Government’s efforts to provide affordable agricultural credit services to its majority smallholder farmers’ participation is still meager. The aim of this study is to analyze agricultural financing for resettled farmers in Zimbabwe, with special focus on the command agricultural loans in the Mutare district. A multistage sampling technique was employed in this study. Firstly purposive selection of Manicaland province was carried out because it is endowed with the five natural farming regions found in Zimbabwe. The second stage involved a random selection of 4 out of 7 districts with favorable climatic conditions for maize production. Thirdly, the study also carried out a purposive selection of Mutare district among the four districts with favorable climatic conditions, given the time and financial constraints. The last stage involved the use of stratified sampling technique, where the sample was divided into two strata. Stratum 1 with A1 farmers and stratum two consisting of A2 farmers, and a random sample was selected from each stratum. The study involved 301 A1 farmers and 49 A2 farmers, making a total sample of 350 farmers used for this study. Double hurdle was employed to examine the factors influencing A1 and A2 farmers` participation in command agriculture loans in the study area. Multinomial logistic regression model was also applied to investigate the determinants of command agriculture loan repayment, while propensity score matching technique was used to examine the impacts of command agriculture loans on maize productivity and profitability of A1 and A2 farmers. The results revealed that family size, and distance from the market GMB positively influence farmers likelihood to participate in in the command agricultural loan. While family size, farmer type and distance from the market were proven to have a positive significant influence on the extent of participation in command agriculture. Also training on the command agriculture loan and gender were proven to have a negative signification influence on the extent of farmers` participation in command agriculture loan. The maximum likelihood estimates of the multinomial logistic regression revealed that age and output levels significantly influence resettled farmers` likelihood to partly pay their loans. Also, the likelihood estimates of the multinomial logistic regression showed that distance from the market and output levels have a positive influence on resettled farmers` likelihood of fully paying the command agriculture loan. Access to extension services to extension services was proven to negatively influence farmers` likelihood to fully pay the loan. The results also revealed that participating in command agriculture significantly impacted productivity at the 1 percent level, while it was not significant in the participants' profitability. The results show that participating in command agriculture increases productivity by 0.93 tonnes hectare. The study recommends the intensification of extension service supply to ensure that farmers are receiving relevant agricultural training, mainly on climate change adaptation strategies. This will help resettled farmers to adjust and adapt to their new farming environments and, in turn, have a positive impact on their production levels. Also, to improve farmers’ profitability the GMB selling price should be in American dollars USD and not paid in part RTGS and part USD, because the RTGS part is always outstripped by inflation. , Thesis (MSc) -- Faculty of Science and Agriculture, 2023
- Full Text:
- Date Issued: 2023
- Authors: Mafirakurewa, Tariro https://orcid.org/0009-0000-6587-4524
- Date: 2023
- Subjects: Agricultural administration--Finance , Farmers -- Zimbabwe , Agriculture -- Economic aspects
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/28255 , vital:73985
- Description: Agriculture plays a paramount role in the economy of many countries including Zimbabwe where more than 70 percent of the population depends on agricultural activities for their livelihoods. Smallholder farmers’ access to agricultural credit is vital for the development and growth of Zimbabwe’s agricultural sector, hence agricultural financing is crucial in rural development. Despite the Government’s efforts to provide affordable agricultural credit services to its majority smallholder farmers’ participation is still meager. The aim of this study is to analyze agricultural financing for resettled farmers in Zimbabwe, with special focus on the command agricultural loans in the Mutare district. A multistage sampling technique was employed in this study. Firstly purposive selection of Manicaland province was carried out because it is endowed with the five natural farming regions found in Zimbabwe. The second stage involved a random selection of 4 out of 7 districts with favorable climatic conditions for maize production. Thirdly, the study also carried out a purposive selection of Mutare district among the four districts with favorable climatic conditions, given the time and financial constraints. The last stage involved the use of stratified sampling technique, where the sample was divided into two strata. Stratum 1 with A1 farmers and stratum two consisting of A2 farmers, and a random sample was selected from each stratum. The study involved 301 A1 farmers and 49 A2 farmers, making a total sample of 350 farmers used for this study. Double hurdle was employed to examine the factors influencing A1 and A2 farmers` participation in command agriculture loans in the study area. Multinomial logistic regression model was also applied to investigate the determinants of command agriculture loan repayment, while propensity score matching technique was used to examine the impacts of command agriculture loans on maize productivity and profitability of A1 and A2 farmers. The results revealed that family size, and distance from the market GMB positively influence farmers likelihood to participate in in the command agricultural loan. While family size, farmer type and distance from the market were proven to have a positive significant influence on the extent of participation in command agriculture. Also training on the command agriculture loan and gender were proven to have a negative signification influence on the extent of farmers` participation in command agriculture loan. The maximum likelihood estimates of the multinomial logistic regression revealed that age and output levels significantly influence resettled farmers` likelihood to partly pay their loans. Also, the likelihood estimates of the multinomial logistic regression showed that distance from the market and output levels have a positive influence on resettled farmers` likelihood of fully paying the command agriculture loan. Access to extension services to extension services was proven to negatively influence farmers` likelihood to fully pay the loan. The results also revealed that participating in command agriculture significantly impacted productivity at the 1 percent level, while it was not significant in the participants' profitability. The results show that participating in command agriculture increases productivity by 0.93 tonnes hectare. The study recommends the intensification of extension service supply to ensure that farmers are receiving relevant agricultural training, mainly on climate change adaptation strategies. This will help resettled farmers to adjust and adapt to their new farming environments and, in turn, have a positive impact on their production levels. Also, to improve farmers’ profitability the GMB selling price should be in American dollars USD and not paid in part RTGS and part USD, because the RTGS part is always outstripped by inflation. , Thesis (MSc) -- Faculty of Science and Agriculture, 2023
- Full Text:
- Date Issued: 2023
Prospects and challenges of the rural non-farm economy in Zimbabwe: a case of Seke rural district
- Authors: Mukozho, Delight
- Date: 2011
- Subjects: Sustainable development -- Zimbabwe , Poverty -- Zimbabwe , Rural development -- Zimbabwe , Farmers -- Zimbabwe , Community development -- Zimbabwe , Food security -- Zimbabwe
- Language: English
- Type: Thesis , Masters , M Soc Sc (Dev)
- Identifier: vital:11429 , http://hdl.handle.net/10353/568 , Sustainable development -- Zimbabwe , Poverty -- Zimbabwe , Rural development -- Zimbabwe , Farmers -- Zimbabwe , Community development -- Zimbabwe , Food security -- Zimbabwe
- Description: The Rural Non-Farm Economy (RNFE) is a concept that has gained significance quite recently. Its significance has been prompted by the realisation that agriculture alone cannot sustain the poor subsistence farmers in Zimbabwe. This realisation comes amid the growing concern over increased hunger and poverty in the country‟s rural areas due to a decline in agricultural production. Drawing on the Sustainable Livelihoods Approach (SLA) this study postulates that RNFE is a livelihood strategy that can address rural poverty and social transformation in Zimbabwe. Such an approach to rural development can take up the slack and provide the much needed income for the rural communities to survive. However, RNFE has not yet been used as a social mechanism for poverty alleviation in Zimbabwe. Therefore, this study was undertaken with the objective of investigating the prospects and challenges of the RNFE in Seke District. Although the study is focusing on Zimbabwe, the study may also address the problem of rural development in other countries in Sub-Saharan Africa. The study revealed that only a few household heads in Sekewere engaged in both traditional and non-traditional activities. However, the study noted that the household heads encountered many challenges which include; poor market, low income obtained, shortage of inputs, no access to credit and no support from government or other development agencies.Overall, it was recognised that the household heads engaged in RNFE were not realizing the full benefits of RNFE. Therefore, in order to promote the growth of RNFE and make it more productive, the study posits the following key points to be take into consideration by the various stakeholders in rural development; agricultural development, infrastructural development, rural town development, improving access to financial services, facilitating rural-urban linkages and the implementation of development projects aimed at promoting self-employment in the non-farm sector.
- Full Text:
- Date Issued: 2011
- Authors: Mukozho, Delight
- Date: 2011
- Subjects: Sustainable development -- Zimbabwe , Poverty -- Zimbabwe , Rural development -- Zimbabwe , Farmers -- Zimbabwe , Community development -- Zimbabwe , Food security -- Zimbabwe
- Language: English
- Type: Thesis , Masters , M Soc Sc (Dev)
- Identifier: vital:11429 , http://hdl.handle.net/10353/568 , Sustainable development -- Zimbabwe , Poverty -- Zimbabwe , Rural development -- Zimbabwe , Farmers -- Zimbabwe , Community development -- Zimbabwe , Food security -- Zimbabwe
- Description: The Rural Non-Farm Economy (RNFE) is a concept that has gained significance quite recently. Its significance has been prompted by the realisation that agriculture alone cannot sustain the poor subsistence farmers in Zimbabwe. This realisation comes amid the growing concern over increased hunger and poverty in the country‟s rural areas due to a decline in agricultural production. Drawing on the Sustainable Livelihoods Approach (SLA) this study postulates that RNFE is a livelihood strategy that can address rural poverty and social transformation in Zimbabwe. Such an approach to rural development can take up the slack and provide the much needed income for the rural communities to survive. However, RNFE has not yet been used as a social mechanism for poverty alleviation in Zimbabwe. Therefore, this study was undertaken with the objective of investigating the prospects and challenges of the RNFE in Seke District. Although the study is focusing on Zimbabwe, the study may also address the problem of rural development in other countries in Sub-Saharan Africa. The study revealed that only a few household heads in Sekewere engaged in both traditional and non-traditional activities. However, the study noted that the household heads encountered many challenges which include; poor market, low income obtained, shortage of inputs, no access to credit and no support from government or other development agencies.Overall, it was recognised that the household heads engaged in RNFE were not realizing the full benefits of RNFE. Therefore, in order to promote the growth of RNFE and make it more productive, the study posits the following key points to be take into consideration by the various stakeholders in rural development; agricultural development, infrastructural development, rural town development, improving access to financial services, facilitating rural-urban linkages and the implementation of development projects aimed at promoting self-employment in the non-farm sector.
- Full Text:
- Date Issued: 2011
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