Abstract:
Access to credit is crucial for enhancing productivity among smallholder rice farmers in Tanzania's
irrigation schemes. Despite its importance, various barriers prevent these farmers from securing
the necessary financial services. This study investigates the factors influencing credit access and
its effect on productivity among smallholder rice farmers in irrigation schemes managed by
agricultural co-operatives in Tanzania. The study adopted a cross-sectional research design,
collecting data from 382 smallholder rice farmers in three Agricultural Marketing Co-operative
Societies (AMCOS) during the 2021 cropping season. Data were gathered through a structured
questionnaire and key informant interviews. The analysis employed the Statistical Package for
Social Sciences (SPSS), utilizing descriptive statistics and binary logistic regression. The findings
reveal that only 34.3% (131) of the 382 respondents had access to credit, and this access positively
influenced productivity among smallholder rice farmers. The model results indicated that the
duration of membership in a cooperative society, land size, access to training, farming experience,
and adequate extension services were significant determinants of agricultural credit access. While
only 34.5% of respondents had access to credit, this access positively influenced productivity. The
key determinants of agricultural credit access include cooperative membership duration, land size,
training access, farming experience, and extension services. To improve rural farmers’ access to
credit, the Local Government Authority and stakeholders in the credit industry should design
interventions that enhance credit access among smallholder farmers. Additionally, promoting
capacity building, financial literacy programs, and ensuring that policy interventions focus on
supporting rural financial institutions are recommended strategies for improving credit access,
boosting agricultural productivity, and enhancing the livelihoods of smallholder rice farmers in
Tanzania.
