Impact of Agricultural Credit on Cotton Yield and Welfare of Tenants A case Study of Gezira Scheme

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Rajab, Afaf Mohamed Yousif
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This study was conducted in the Gezira Scheme which is largest cotton production Scheme in the Sudan. Cotton represents the major cash crop in the Sudan. The study is an attempt to investigate the main hypothesized factors with emphasis on agricultural credit affecting cotton yield in the Gezira Scheme and the factors affecting net farm income, net cotton income and net income from other crops grown in the rotation and their effect on the welfare of the tenants The study was mainly based on primary data collected through a field survey. Hundred farmers were selected and reviewed as a sample size through simple random sampling techniques in 1999/2000 season. Additional supports of secondary data was collected from relevant sources mentioned in the methodology chapter. The collected information about the socio-economic characteristics of the farmer were then subjected to statistical analysis. Regression analysis was used to estimate cotton yield, the net farm income with respect to net cotton income, net cotton income, net income from other crops in addition to consumption expenditure of the tenants. The statistical analysis of farmer social characteristics showed that most of Gezira farmers are falling within the old age group, and their level of education is rather high. Also they are characterized by having large extended families, however their expenditure concentrated on food, consumption, education, health care and housing respectively. The study revealed that: The production function for cotton crop was estimated and the result showed that, among the most important factors affecting cotton productivity, were the loan provided to tenants, non farm income and cost of inputs and other field costs. The results of estimated net farm income showed that the contribution of vegetables and Dora revenues in net farm income were more significant than cotton revenue. Cotton yield per feddan, quantity of loan per feddan and cost of cotton production were the main factors that significantly affect the net cotton income The total yields of other crops and their secondary products were the main factor that influenced the net income from other crops. The consumption expenditure was directly affected by the non farm income and the family size variables. To increase cotton productivity in the Gezira scheme the study recommended that the seasonal loans should be timely and adequately issued according to agricultural operation calendar. Moreover, it recommended that access to own agricultural implements should be made available to farmers and tenants should depend on their self-finance so as to reduce the demand for credit from lending institutions. Moreover, a recommendation was made for the improvement of the marketing channels so as to increase farmer’s income which in turn increase the productivity of the crops and the welfare of the farmer. Above that the federal and local government should not depend so much in its taxation revenue on irrigated schemes
Agricultural Credit,Cotton,Gezira Scheme