Journal of Agriculture
and Environmental Sciences

A Study of Effects of Microfinance Credit on Community Farmers in Upper Denkyira East Municipality of Ghana
Ernest Adu-Gyamfi, Kwame Attafuah Ampofo

Abstract
This study examined the effect of microfinance credit on community farmers in the Upper Denkyira East Municipality of Ghana. The study used the mixed approach research technique. Both qualitative and quantitative research methods were used for the study. Convenient sampling procedure was used to select two hundred (200) farmers for study and questionnaire and structured interview were the research instruments used to collect the data from the community farmers. From the study findings, 90% of the farmers do save their gains from farming at the microfinance institutions and it is established that the interest rates are high for the community farmers to deal with and farmers were negatively affected by the high interest rates being charged by the banks. The study concluded that microfinance credit has made a significant effect on the economic life of community farmers to increase their farms and yields. It was recommended that there should be more collaboration between the microfinance institutions and farmers. In addition, the prime rate charged by the central bank should be reduced to allow the other financial institutions to also reduce their interest rates and farmers should be educated on how to establish, manage, sustain and expand their farms.

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