The Effect of Farm Credits on Crop Production In Jambalul, Afgoia –Somalia

Abstract

Farm credit plays a pivotal role in agrarian and rural development as it allows farmers
gain economies of scale, venture into new fields of production, engage new technologies and
enable them to provide utilities for a broadening market so this paper aims to examine the effects
of farm credits on crop production in Jambalul, Afgoia and to find out the magnitude of the farm
credit services with the findings in Jambalul, Afgoia, and Lower Shebelle in Somalia.
A survey research method has been adopted to examine the effects of farm credits on crop
production in Jambalul, Afgoia. The data were collected through questionnaires filled by the
respondents and the survey respondents were asked to rate eighteen questions developed from the
three objectives of the study.
The results indicated that farm credits is an important tool for the production of crops through
providing of loans and setting stable rural economic community. Farm credits improve the living
standard of farmers by increasing their yielding and reducing the poverty.