Impact of SACCOS on the Use of Improved Farm Inputs: An Empirical Evidence of Rural Micro-finance Schemes, in Geita region, Tanzania Musoma Beston Musa, Chusi Tafuteni Nicholaus, Mayaya Hozen Institute of Rural Development Planning, P.O. Box 138, Dodoma, Tanzania Online published on 8 August, 2018. Abstract This paper analyzes the impact of Savings and Credit Cooperatives Societies (SACCOS) as one of the rural microfinance schemes on the improvement of small-scale farming through the use of improved farm inputs. It uses a case study research design to collect information from Kalangala and Kasamwa wards in Geita region. A structured questionnaire was used to collect primary data from 120 small-scale farming households out of which 60 were SACCOS members and the remaining 60 were non SACCOS members. Focus group discussion and secondary data collected from key informants were used to compliment information collected from the sample households. The collected data was analyzed using the Statistical Package for Social Sciences (SPSS) program. In particular, descriptive statistics were used to depict frequency distribution, percentages, means and standard deviations so as to characterize the sample households. The differences in the performance of SACCOS and non-SACCOS members was determined by using independent t-test and Chi-square. The findings indicates that, credit availability increases small scale farmer's ability to utilize more productive and improved agricultural inputs and hence increased productivity and households ’well being. Chi square results on labour hiring, use of improved seeds and use of fertilizer indicated significant difference (p<0.05) between SACCOS and non SACCOS members. In addition, t-test results indicated that SACCOS members significantly harvested more yield (p<0.05) as compared to non-SACCOS members. In all cases, SACCOS memmbers performed better than non-SACCOS members. Conclusively, it is very important for the small-scale farmers to have an access to credit to cover the necessary costs during production process as it will increase productivity. This underscores the need for small-scale farmers to join and engage in rural microfinance schemes as they are recognized as the major agricutural financier in the rural settings. Futhermore, SACCOS are advised to reduce interest rates especially on agriculture loans in order to benefit many smallholder farmers. Top Keywords Micro-finance, Rural Micro-finance, Improved Small-scale farming. Top |