Agricultural advisory and financial services; farm level access, outreach and impact in a mixed cropping district of Punjab, Pakistan

Ehsan Elahi, Muhammad Abid, Liqin Zhang, Shams ul Haq and Jam Ghulam Murtaza Sahito

Land Use Policy, 2018, vol. 71, issue C, 249-260

Abstract: Current agricultural growth in most of the developing countries including Pakistan is stagnant due to huge gaps between actual and potential crop productivity. Better access to agricultural advisory and financial services may play an important role in enhancing crop productivity. Using a dataset of 240 farmers collected through face-to-face interviews in 48 villages of district Sargodha in Punjab, Pakistan, this study analyzes farmers’ access to and use of farm advisory and financial services, its impact on wheat productivity and barriers to their access. The results of the study revealed that farmers rely more on informal sources for agricultural advisory and credit services than public or private sources. However, the quality of private advisory and credit services was reported better than other sources due to its easy availability and processing. Small land holdings, lack of education and high interest rates were some of the key barriers that restrict farmers’ access to both services. Further, the study also found that majority of the farmers (accessors) use agricultural credit for non-farm activities for several reasons. Moreover, the study found significant differences in the wheat productivity for farmers who had simultaneous access to both services compared to those who have access to at least one or none of the services. The study findings showed that access to agricultural advisory services improves wheat productivity. However, productivity gains of using agricultural credit are mainly associated with its proper utilization for agricultural purposes. The study suggests enhancing the outreach and quality of public advisory services through hiring and training extension staff. Furthermore, misuse of agricultural credit and barriers that restrict farmers’ access to advisory and credit services need to be eliminated through implementing effective policies and monitoring provided services.

Keywords: Agricultural advisory services; Agricultural financial services; Crop productivity; Pakistan (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (61)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:71:y:2018:i:c:p:249-260

DOI: 10.1016/j.landusepol.2017.12.006

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