Abstract:
Access to credit is crucial for enhancing productivity among smallholder rice farmers in Tanzania's
irrigation schemes. Despite its importance, various barriers impede these farmers from securing the
necessary financial services. This study investigates factors influencing credit access and its impact on
productivity among smallholder rice farmers in irrigation schemes managed by co-operative societies
in Tanzania. The study adopted a cross-sectional research design whereby data from 382 smallholder
rice farmers in three Agricultural Marketing Co-operative Societies (AMCOS) were collected during
the 2021 cropping season. Data were collected through a structured questionnaire and key informant
interviews. Data were analyzed using Statistical Package for Social Sciences (SPSS) whereby
descriptive statistics and the binary logistic regression model were performed. The results show that
access to credit has a positive impact on the productivity of smallholder rice farmers. Model results
indicated that level of education, frequent extension services, access to information, and membership
in social groups determine access to agricultural credit among smallholder rice farmers in irrigation
schemes. Thus, to improve rural farmers' access to credit, Agricultural Marketing Co-operative
Societies should promote education, financial literacy programs, membership in social groups, and
adopt innovative credit models like microfinance and group lending. The Local Government Authority
should ensure that policy interventions focus on supporting rural financial institutions as a strategy for
improving credit access, boosting agricultural productivity, and enhancing the livelihoods of
smallholder rice farmers in Tanzania.
