Impact of credit-based crop development projects (FCDP's) on socio-economic lives of small-scale maize farmers: The case of Ejura-Sekyedumase district

Abstract

This study sought to find answers to the questions of whether the Food Crop Development Project improved farmers’ access to credit, changed farmers savings culture or whether small-scale maize farmers adopted the improved maize production practices. In addition, the study seeks to know whether or not there has been any significant difference in food security situation between participant and non-participant farmers. Descriptive-Correlation survey was conducted and using multistage random sampling procedure a final sample of 130 farmers was selected. Pearson’s correlation coefficients indicated that participation in FCDP had a positive and significant but moderate relationship with maize output, but had no significant relationship with total farm incomes. More participants reported having easy access to credit than non-participants with Chi-square value of 17.29 being highly significant indicating the possible relationship between ease of access to credit and participation in FCDP. Pearson’s Chi-square (÷20.01) of 14.44 was also found to be significant indicating the possible relationship between participation and saving in a financial institution. The OLS stepwise regression analysis showed that participation in FCDP, farm size and ease of access to credit were the main predictors of maize output while participation, income and household size were also the main predictors of food security. Thus, FCDP helped to improve the livelihoods of maize farmers in the study area. The policy implication of these findings is that subsidized agricultural input projects like the FCDP, have the potential to improve food security and farm incomes of peasant households.