Impact of Rural Financial Services OnFood Insecurity and Alleviation of Poverty,Acase Study of El Nahoud Co- Operative Credit Project, Sudan

Abstract

This study was carried out to assess the impact of rural financial services for the alleviation of poverty and food insecurity in En Nahoud area, West Kordofan state, Sudan, and to identify the factors associated with the increase of agricultural production and sustainable incomes. The study constituted attempts toward the documentation of impact of the rural financial services especially agricultural finance on farmers and passing the recommendation to agricultural research stations to test and further development of adoption of innovation by farmers in the area The study cover seven core villages that were targeted and by agricultural extension and finance through En Nahoud Cooperatives Credit Programme (ENCCP) which was jointly implemented by the west Kordofan Ministry of Agricultural and Natural Resources, during the period 1987-1995. The impact composed of 69 respondents with equal representation of male and female included beneficiaries of the programme who practical agriculture activities before, during and after the (ENCCP). Data analysis involved the use of the Statistical Package for the Social Science (SPSS) computer programme. T.test analysis revealed no significant differences between two period of before and after (ENCCP) in transport crops use and benefit from crop residues and method of crop marketing. Also the result of T.test analysis showed that the period after (ENCCP) was significant different from the period after (ENCCP) in term of quality of farm products, area under crops, variety and consumption of food, household income, food security status diverse and work opportunity, saving, capacity building and degree and attitude of adoption of innovation. This was attributed to the fact that farmers after (ENCCP) become more exposed to agricultural extension and financial services, which were focused on income generation activities, farm products and capacity building. The (ENCCP) was implemented partnership with the farmers cooperative association The study reveal high level of innovation among farmers in En Nahoud area in farm experimentation with improved seeds during and after (ENCCP) whose result encouraged farmers to engage more vigorously in experimentation with production techniques and adoption of improved practices. The result of the study indicated that the period during and after (ENCCP) in En Nahoud area increased farm production and the area under crops. Farmers attitudes towards adoption and rejection of scientific technological packages for the production of crops investigated in the study were found to be influenced by factors related to their convictions concerning the advantages of the introduced scientific innovations compared to local production techniques. The study revealed that farmers in En Nahoud area are employed in alternative Jobs during the year in farm and non – farm activities to ensured and sustained incomes. Correlation analysis indicated that the consumption of food by farmer families after (ENCCP) is passively and significantly associated with the family size, family income, farm product and adoption of scientific innovations. Correlation analysis indicated that the food security status after (ENCCP) is positively and significantly associated with farm size, consumption of food for farmer families, age and family income and negatively and significantly associated with education level. Moreover correlation analysis indicated that negatively and significantly associated with farm product before (ENCCP). Correlation analysis resulted showed that the level of farm income after (ENCCP) is positively and significantly associated with farm size, farm product, farmers age and adoption of technology, negatively and significantly associated with family size and education level. This was found to be true for the period before (ENCCP), except for adoption of technology. Correlation analysis revealed that the farm product after (ENCCP) is positively and significantly associated with farm size, adoption of technology and age of the farmers, negatively and significantly associated with the family size and saving. Correlation analysis resulted indicated that the adoption of technology after (ENCCP) is positively and significantly associated with education level and farm size. The revised casual models were generated through use of stepwise regression analysis and the application of the path analysis procedure to determine factors affecting food security and poverty alleviation directly or indirectly among farmers in En Nahoud area before and after (ENCCP). The determine of the farm products through adoption of new and improved seeds by farmers and farm size after (ENCCP) were positively influencing farm income and products in addition to sustain of work opportunity through the rainy seasons and off-season. The finding of the study suggest that more attention should be directed by researchers to test, development and documentation of finance farm product, income generation project and the factors affecting farm products and innovative knowledge adopted to local environments, such as the importance of availability of scientific knowledge and credit to the farmers through farmers association.