Agricultural Credit Accessibility and Rice Production in Savelugu-Nanton and Walewale Districts of Northern Ghana

As  Ghana  struggles  to  achieve  accelerated  growth  in  food  production,  increasing  the output of  rice  has  become  an  important  goal. The main aim of this study  is  to  find  out  the  determinants  of  agricultural  credit  accessibility  and  its effect on rice output. The study was conducted in  four communities  in  the  Savelugu-Nanton  District  and  two  communities  in  the Walewale District. It was aimed at ascertaining the determinants of agricultural credit accessibility and its impact on rice output. In all, a sample of 90 rice farmers was interviewed using a semi-structured questionnaire as well as focus group discussions. Data was collected on the mode of operation of existing credit institutions in the districts, the socio-economic indicators of farmers believed to influence credit accessibility and the inputs and output of farmers in the 2008/2009 farming season. Out of the 90 rice farmers interviewed, only 37 received agricultural credit from Bangmarigu Community Rural Bank and MoFA.  In addition, most  of  the  farmers were  not  aware  of  the  existing  credit  institutions  while others  did  not  access  the  credit  due  to  high  interest  rate,  small  credit  size,  fear  of indebtedness and low educational status. From the survey, it became known that agricultural credit accessibility is positively influenced by group membership, farm size and gender. Specifically females had greater average of credit than males. The study revealed that, agricultural credit has a significant effect on rice output hence the need to seek for credit to increase production levels.  It is recommended that farmers are sensitized on the existence of credit institutions. Also credit institutions should institute measures to reduce interest  rate  and  also make  credit  acquisition  processes  and  repayment  plans  simple  and flexible. Key words: Credit accessibility, Determinants of credit, Cobb-douglas production function and Correlatio