Impact of subsidized credit on agricultural performance and food security : comparison between commercial and smallholder farmers in Zimbabwe

Agricultural credit has been seen as an important vehicle in agricultural development as it fosters adoption of advanced and more modern technology (Schultz, 1964). The problem which continues to haunt the smallholder farmers in developing countries has been identified to be the slow pace of adopting modern agricultural technology, and this severely impacts on their production levels causing high levels of poverty in this sector. This author attributes this problem to the inequality associated with the distribution of credit between commercial and smallholder farmers which then distorts its much acclaimed role in attainment of food security. Smallholder farmers are those farmers with 30 or less hectares of land for use in any agricultural activity (crop production or cattle rearing) and commercial farmers have more than 30 hectares (according to the Zimbabwean farming sectors). This paper analyzes the impact of the inequality in distribution of credit on food security and welfare using a case of farmers in Zimbabwe.

Grantor dc:publisher.institution

School of Economics

Year dc:date.issued

2007

Author dc:creator

• Musuna, Sophia

Advisor dc:contributor.advisor

• Muchapondwa, Edwin

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/11427/5730

OAI identifier oai:identifier

oai:open.uct.ac.za:11427/5730