Impact of Agricultural Credit and Extension Services on Farm Income In Brakat Block, Gezira Scheme, Sudan

Abstract

This study was conducted in Brakat Block in Gezira Scheme with the objective of assessing the impact of agricultural credit and extension services on farm income. The study was mainly based on Primary data which were collected from farmers through direct individual interviews and observation, in addition to secondary data which were collected from relevant sources. A simple random sampling procedure was used to select 80 farmers from Brakat Block. Data analysis involved frequency distribution statistic which was used to describe some social characteristics of the respondents. Regression analysis and chi-square were also employed to test the direct and indirect effects of some variables on farmer’s productivity, and farm income. Sudan Gezira Board financed cotton and wheat crops. Farmers may finance these two crops by their own sources. The results of the study showed that some crops like groundnut, dura and vegetables were financed by the farmers, through sheil system, partnership, renting part of the land or by farmer’s own money. The regression test revealed that the productivity of dura affected farm income while the productivity of cotton , groundnut and wheat had no significant association with farm income, this because dura was mainly stable food crop for people in Gezira, farmers had on up care of growing it, consequently the productivity of it was approximately high so affected farm income, however the study revealed that farmer’s income was low. The results indicated that the majority of farmers had no contact with extension information sources, they depended on their own experience. The number of extension agents in the Gezira was very few, so the effect of their performance was weak. The study recommends a provision of suitable formal credit services in optimal time and improvement of credit facilities to increase the farm income, also improvement of water management to increase farm productivity. The study also recommends increasing the number of extension agents in the scheme to help the farmers to adopt the new technologies to increase their farm income. The study suggests linking of agricultural credit with the agricultural extension through use of supervised credit programmes to insure efficient use of credit for purpose of agricultural production.