Determinants of Farmers’ Confidence Level in the Financial Sector of Ghana: A Case of the Ejura Sekeredumase Municipality of the Ashanti Region
International Journal of Agricultural Economics
Volume 5, Issue 3, May 2020, Pages: 71-79
Received: May 2, 2020;
Accepted: May 26, 2020;
Published: Jun. 17, 2020
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Yenibehit Nanii, Department of Agribusiness, Animal Health and Production College, Pong Tamale, Ministry of Food and Agriculture (MoFA), Pong-Tamale, Ghana; Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana
Awoyemi Abiodun Emmanuel, Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana
Akorsikumah Eli Andreaws, Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana
Akurugu Sumaila, Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana; Department of Social Welfare and Community Development, Tolon District Assembly, Tolon - Northern Region, Ghana
Adongo Azure Simon, Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana
Adam Umar, Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana
Alhassan Abdul Fataw, Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana
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.
Awoyemi Abiodun Emmanuel,
Akorsikumah Eli Andreaws,
Adongo Azure Simon,
Alhassan Abdul Fataw,
Determinants of Farmers’ Confidence Level in the Financial Sector of Ghana: A Case of the Ejura Sekeredumase Municipality of the Ashanti Region, International Journal of Agricultural Economics.
Vol. 5, No. 3,
2020, pp. 71-79.
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