Effect of Credit on Cassava Productivity in Kintampo South District Using Cobb-Douglas Production Function Model

Abstract

The study estimated the effect of credit on cassava productivity in Kintampo South District using Cobb-Douglas Production function model. Primary data was collected from 60 small- scaled cassava farmers while secondary data was gathered from literature. Snowball sampling technique was used to obtain the sample size of 60 small-scaled cassava farmers. Data obtained were analyzed using descriptive statistics and Cobb-Douglas Production function model. Results from the study showed that majority of the farmer’s accessed credit from VSLA groups. The study found that, credit has significant effect on cassava output level with an elasticity of 1.83 implying that a percentage increase in credit supply will lead to 1.83 % increase in cassava output. The study concludes that, the output of cassava could be increased considerably by obtaining credit. The study recommends the Ministry of Agriculture to use VSLA groups as vehicle of administering loans/credit to small-scaled farmers to increase productivity of farmers. Secondly, small-scaled farmers in Kintampo South District should be part of VSLA and other co-operate groups to acquire credit which will enable them purchase necessary input required for cassava farming activities.