Browsing by Author "OCEN JASPER"

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    DRIVERS OF BORROWING DECSIONS AND CHOICE OF SOURCE OF CREDIT AMONG SMALLHOLDER FARMERS IN NORTHERN UGANDA
    (Gulu University, 2025) OCEN JASPER
    Access to credit plays a critical role in improving the livelihoods of smallholder farmers by enabling them to invest in agricultural inputs, expand production, and enhance food security. However,smallholder farmers in Northern Uganda continue to face challenges in accessing agricultural credit due to socio-economic and institutional barriers. This study examined the influence of socio-economic factors and credit attributes on borrowing decisions and choice of agricultural credit source among smallholder farmers in Northern Uganda. A cross-sectional survey design was employed to collect data from 223 smallholder farmers in Amuru and Nwoya districts. Data were analyzed using descriptive statistics, binary logistic regression, and multinomial logit regression models. The study findings revealed that 65% of the farmers had borrowed credit. Additionally, borrowing decisions were significantly influenced by the sex of household head, one-off repayment schedule, collateral requirement, number of farm labourers, credit approval history, marital status, and interaction between sex of household head and interest amount. Furthermore, the choice of credit source was significantly influenced by sex of household head, credit approval history, interest amount, collateral requirement, credit amount, and participation of female spouse in credit application. Village Savings and Loan Associations (VSLAs) were the most common source of borrowing, followed by microfinance institutions. The study concludes that both socio-economic factors and credit attributes jointly determine smallholder farmers’ borrowing decisions and their choice of credit sources. Enhancing access to agricultural credit therefore requires addressing gender disparities, reducing collateral constraints, and aligning repayment schedules with agricultural income cycles. The study recommends that financial institutions should develop gender-sensitive and farmer-friendly credit products, including flexible repayment schedules and group-based collateral systems. Government and development partners should strengthen financial literacy and promote inclusive agricultural credit policies to ensure equitable access to credit among smallholder farmers in Northern Uganda.