Credit Access and Smallholder Rice Farmers’ Productivity in Agricultural C O-Operatives Based Irrigation Schemes in Tanzania

Access to credit is crucial for enhancing productivity among smallholder rice farmers in Tanzania's irrigation schemes. Despite its importance, various barriers prevent these farmers from securing the necessary financial services. This study investigates the factors influencing credit access and its effect on productivity among smallholder rice farmers in irrigation schemes managed by agricultural co-operatives in Tanzania. The study adopted a cross-sectional research design, collecting data from 382 smallholder rice farmers in three Agricultural Marketing Co-operative Societies (AMCOS) during the 2021 cropping season. Data were gathered through a structured questionnaire and key informant interviews. The analysis employed the Statistical Package for Social Sciences (SPSS), utilizing descriptive statistics and binary logistic regression. The findings reveal that only 34.3% (131) of the 382 respondents had access to credit, and this access positively influenced productivity among smallholder rice farmers. The model results indicated that the duration of membership in a cooperative society, land size, access to training, farming experience, and adequate extension services were significant determinants of agricultural credit access. While only 34.5% of respondents had access to credit, this access positively influenced productivity. The key determinants of agricultural credit access include cooperative membership duration, land size, training access, farming experience, and extension services. To improve rural farmers’ access to credit, the Local Government Authority and stakeholders in the credit industry should design interventions that enhance credit access among smallholder farmers. Additionally, promoting capacity building, financial literacy programs, and ensuring that policy interventions focus on supporting rural financial institutions are recommended strategies for improving credit access, boosting agricultural productivity, and enhancing the livelihoods of smallholder rice farmers in Tanzania.