Title: Barriers from the Field: Exploring How Farm Characteristics Limit Financial Access among Smallholder Rice Farmers in Iringa District Council
Authors: Robert Kibona, Alexander Ochumbo, Dominicus Kasilo
Volume: 9
Issue: 10
Pages: 45-63
Publication Date: 2025/10/28
Abstract:
Smallholder farmers play a vital role in Tanzania's agricultural economy, contributing significantly to food security, rural livelihoods, and poverty reduction. Among them, rice farmers in Iringa District Council form an essential segment of the agricultural landscape, producing one of the country's staple crops and a major source of household income. This study examined the multifaceted factors influencing smallholder farmers' eligibility for financial services and overall financial inclusion in Iringa Municipal, Tanzania, with a focus on farm characteristics, production systems, technological adoption, and institutional challenges. Using a qualitative survey approach with a sample size of 200 respondents, the research explored how farm size, land tenure, and asset ownership shaped farmers' creditworthiness, alongside the roles of production systems, farming technologies, and market linkages. The findings revealed that smaller and fragmented farms, coupled with insecure land tenure and low-value assets, significantly reduced access to formal financial services. Moreover, limited adoption of modern farming technologies, weak market linkages, and low financial literacy further constrained credit access. Institutional challenges such as high interest rates, rigid collateral requirements, and limited rural banking outreach compounded these barriers, maintaining a persistent financial exclusion gap. Despite these challenges, some farmers with titled land, mechanized assets, or cooperative market participation demonstrated improved access to credit. The study concluded that bridging the agricultural financing divide requires integrated interventions that strengthen asset recognition, enhance farmers' financial capacity, and promote inclusive financial systems that align with the realities of smallholder agriculture in Tanzania.