Abstract
This paper adopted the PPO model to examine determinants of the confidence level of farmers on the financial institutions using 274 randomly selected farmers from Ejura Sekeredumase Municipality. About 44.9% of the farmers reported not having confidence in the financial institutions of the country, 21.9% were somehow confident in the sector, 17.5% were confident whereas only 15.7% were very confident in the sector. Male farmers were more likely to be very confident in the financial sector whilst education in years, farmers who ever lost savings or investment as well as those with current savings and/or investment all had positive outcome in the likelihood of being very confident in the financial sector. Duration of farmers with a financial institution and farmers who ever encountered challenges in a financial institution are less likely to be very confident in financial institutions in Ghana. The Central Bank should develop a different proactive educational model or approach to educate farmers on how to identify risk and other exposures that may be associated with the financial institutions operating in the rural areas in order to enable them to take decisions towards savings and investment. This will boost their confidence levels.
Highlights
The contribution of agriculture to the economic development of developing economies such as those of Africa cannot be underestimated
This assumption could be violated because of the different mind-set farmers may have on the financial sector, which could hamper their confidence in the sector
As asserted by Williams [19], the results of the proportional odds (PPO) model is interpreted by contrasting the current category with the least coded as the base groups
Summary
The contribution of agriculture to the economic development of developing economies such as those of Africa cannot be underestimated. Economic growth and development of a country is a function of how healthy the agricultural sector is [1]. Ghana continues to depend largely on agriculture to fuel its economic growth and development despite the discovery and exploitation of oil in commercial quantities. Agricultural output grew tremendously between 2017 and 2018 largely due to government policy intervention and expenditure in the sector. It is opined that despite the contribution of agricultural sector to the economic development of most developing countries, it is still the most vulnerable sector of any economy and receives the least budgetary allocations [3]
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