Effects of Credit on Agricultural Inputs and Technology in the Nkoranza North District, Ghana

The study sought to address the question as to whether agricultural credit affects maize productivity in the Nkoranza North District (NND). The study employed the quasi-experimental and a cross-sectional survey design using the ‘with and without’ method in assessing the effects of microcredit on the production levels of small scale farmers in the district. In all, a total of 310 respondents were randomly selected for the study. Respondents were then grouped into farmers with and without credit. Questionnaire was used to collect data from the respondents. Graphs and tables were used to present descriptive aspect of the results while the independent sample t-test was used to examine the effect of credit on inputs and agricultural technology. The study revealed that credit largely and positively influences the acquisition of agricultural inputs such as fertilizers, pesticides and herbicides, as well as hiring of labour and acquisition of more farm lands and technology. The study concludes that microcredit improves maize production in the NND. It is recommended that farmers must join the farmers’ associations in their communities to facilitate their access to credit and must use their loans for the intended purposes.