Abstract:
In Ghana, among other things, limited access to agricultural finance has remained one of the fundamental
problems that hamper production, productivity and related agribusiness investments in rural communities and
farm households. This study sought to empirically investigate smallholder farmer’s accessibility to formal
credit and constraints they encounter in the process. A multi stage sampling method was employed to select
eighty farmers from Nzema East Municipality for the study. Descriptive statistics, logit regression model and
Kendall’s coefficient of concordance were used in analyzing the data. The output from the study indicates that
30 (37.5%) of the sampled farm households were formal credit users, whereas the remaining 50 (62.5%) were
non-users. The empirical results from the logit model analysis of the study indicated that age, education, income
levels, distance to the financial source, family size, credit awareness level and farming experience were highly
important in influencing access to formal credit.
Keywords: Credit Accessibility, Logistic Analysis, Nzema East Municipal
