Why Do Many Small Farmers Lack Access to Formal Credit?

A new study led by researchers from ESPOL and Eminat Research Group investigates the barriers limiting access to formal agricultural credit among rice producers in Santa Lucía, Guayas (Ecuador).

Despite the crucial role of credit in reducing rural poverty, 72% of the farmers surveyed live in poverty and rely on informal lenders under unfavorable terms.

Field Research

Using a logit model, the study identified five key factors that significantly increase the likelihood of accessing formal credit:

• The farmer’s level of education

• Number of hectares of rice cultivated

• Household size

• Access to subsidized agricultural kits

• Ability to negotiate rice selling prices

The findings highlight the urgent need for more equitable, sustainable, and context-sensitive financial inclusion programs tailored to rural communities.

Eminat Mentor promotes knowledge for sustainable rural development through scientific evidence and applied solutions.

🔗 Read the full study here

#RuralDevelopment #AgriculturalCredit #EminatResearch #SantaLucía #FinancialInclusion #ImpactMentoring