ROLE OF AGRICULTURAL INPUT CREDIT ON PRODUCTIVITY OF MAIZE: THE CASE OF KUYU WOREDA

Abstract

Agriculture is the largest sector in the Ethiopian economy approximately employing 85% of the country’s population. Government of Ethiopia is currently paying attention in helping farmers. It provides different incentives like credit and training. Credit plays crucial role in increasing maize production. Despite its importance, farmers face many challenges in utilization of credit for maize production. As the study was intended to find out factors affecting maize production and role of credit in maize production, in North shewa, Kuyu district, different factors found significant. The study has used simple random sampling in identifying sample respondents. Linear multiple regression analysis was used in the study. Ten variables were included in to the regression analysis of the study; four variables become significant. Family size, Land size, fertilizer and Sex of house hold become significant. This indicates agriculture is becoming the main sector in absorbing large number of labor. Now days, no one can expand land size, but there is duty of all bodies to take care of land uses. As credit is playing great role in maize production, it has to be given attention in expanding credit services for the community. There are so many factors hindering farmers from credit utilization, government should create environment that enables farmers to utilize credit according to the intention. Therefore the government better to do expand the farmer training center and which provide know how to the farmers about the role of inputs and how to use them in a best way.