Factors influencing credit access among small-scale poultry farmers in the Sunyani West District of the Bono region, Ghana

Abstract

The study assessed the factors influencing credit access among small-scale poultry farmers in the Sunyani West District. In the sampling process, multi-stage sampling procedure was utilized. Data was analyzed descriptively and inferentially. The study showed that small-scale poultry farmers in the Sunyani West District accessed credit facilities mainly from informal sources such as relatives, friends, traders, moneylenders among others. Again, the study discovered that relatives and friends were the main informal sources where they obtained credit facilities in the Sunyani West District. Additionally, results of the regression analysis showed that there was a significant association between small-scale poultry farmer’s individual factors such as education, household size, size of farm, belongingness of farm based organization, savings and access to credit facilities. Again, the results revealed that there was huge connection between institutional elements such as capacity of households to repay loans, interest rate, collateral security and small-scale poultry farmer’s access to credit facilities. Moreover, the study discovered that challenges such as high interest rate on loans, high administrative and insurance costs on credit facilities from financial institutions, lack of collateral securities to secure loans and low educational background and lack of management skills impeded small-scale poultry famer’s access to credit facilities. Key words: Credit, poultry, multiple regression, Sunyani West District Assembly, Ghana.