An Assessment Into the Agriculture Financing Strategies to Small Holder Maize Farmers in Zvimba District

Abstract

This research study an assessment into the agriculture financing strategies to small holder maize farmers in Zvimba District was undertaken because small holder farmers have been facing challenges in gaining access to credit facilities in Zimbabwe. This study is guided by research objectives such as 1) To examine the structure of current agriculture finance models for small holder farmers in Zvimba, 2) To assess the effectiveness of agriculture finance models for small holder farmers in Zvimba and 3) To establish challenges facing small holder farmers in accessing agriculture financing in small holder farmers in Zvimba. This study adopted positivism research philosophy. This study used a targeted population of 350 small holder farmers in Zvimba. A sample of 184 small holder farmers was attained using raosoft online sample size calculator. The study established that agriculture finance is best when it is throughout the agriculture value chain. It was also established that Agriculture finance model are flexible. The study also concluded that an agriculture finance model had positive effect on output. Most of the respondents indicated that they agree to the notion that Agriculture finance model are flexible. It was also noted that there are some challenges facing small holder farmers in accessing agricultural financing in small holder farmers in Zvimba District. These challenges include lack of collateral, low access to cheap capital, limited access to information, limited access to technology, limited access to markets and limited resources. It was recommended that The government of Zimbabwe should increase the land areas under maize and other crop production and win competition from other cash crops. The government and banks should provide small holder farmers a complete input package and finance package timely and refine the input distribution and improve accountability. Banks should invest in research and development to improve quality of crop seed and ensure higher yields.