Village saving loan association membership and commercialization among smallholder maize farmers in northern Uganda

Abstract Smallholder maize farmers are typically engaged in subsistence production with low input use, low yields, and insufficient profits for on-farm investment. Despite the role of Village Savings and Loan Associations (VSLAs) in enhancing financial inclusion and promoting agricultural commercial...

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Main Authors: Sarah F. Achieng, Caleb I. Adewale, D. M. Okello, B. Mugonola
Format: Article
Language:English
Published: Springer 2025-05-01
Series:Discover Agriculture
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Online Access:https://doi.org/10.1007/s44279-025-00235-2
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author Sarah F. Achieng
Caleb I. Adewale
D. M. Okello
B. Mugonola
author_facet Sarah F. Achieng
Caleb I. Adewale
D. M. Okello
B. Mugonola
author_sort Sarah F. Achieng
collection DOAJ
description Abstract Smallholder maize farmers are typically engaged in subsistence production with low input use, low yields, and insufficient profits for on-farm investment. Despite the role of Village Savings and Loan Associations (VSLAs) in enhancing financial inclusion and promoting agricultural commercialization, little is known about the factors driving smallholder farmers' participation in these associations and how this affects maize commercialization, particularly in northern Uganda. This study sought to examine VLSA membership and commercialization among smallholder maize farmers in northern Uganda. This study specifically examined the factors influencing maize farmers' participation in VSLAs and assessed the factors influencing the level of maize commercialization among VSLA members and non-members. Data were collected from 420 randomly selected smallholder maize farmers and were analyzed using binary logistic and Tobit regression models. Results revealed that 52% of the farmers participated in VSLA while non-participants had maize commercialization levels of 61%. Further, male gender, age, household size, fresh maize form, hire labor, extension service, market information, phone information, access to credit, and land ownership significantly influenced maize farmers’ participation in VSLAs. Factors influencing the level of maize commercialization among VSLA member farmers include age, educational status, spot market, hire labor, land ownership, farm income, and distance to the output market. The study recommends that the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) should implement policies focused on improving access to financial services, promoting gender-sensitive training programs, and investing in rural infrastructure to reduce market access barriers, which will foster maize commercialization and economic development among smallholder farmers.
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spelling doaj-art-8639460edcdc44ca99384bf0b56df21f2025-08-20T03:48:06ZengSpringerDiscover Agriculture2731-95982025-05-013111310.1007/s44279-025-00235-2Village saving loan association membership and commercialization among smallholder maize farmers in northern UgandaSarah F. Achieng0Caleb I. Adewale1D. M. Okello2B. Mugonola3Department of Rural Development and Agribusiness, Faculty of Agriculture and Environment, Gulu UniversityDepartment of Rural Development and Agribusiness, Faculty of Agriculture and Environment, Gulu UniversityDepartment of Agribusiness and Natural Resource Economics, Faculty of Agriculture and Environmental Sciences, Kabale UniversityDepartment of Rural Development and Agribusiness, Faculty of Agriculture and Environment, Gulu UniversityAbstract Smallholder maize farmers are typically engaged in subsistence production with low input use, low yields, and insufficient profits for on-farm investment. Despite the role of Village Savings and Loan Associations (VSLAs) in enhancing financial inclusion and promoting agricultural commercialization, little is known about the factors driving smallholder farmers' participation in these associations and how this affects maize commercialization, particularly in northern Uganda. This study sought to examine VLSA membership and commercialization among smallholder maize farmers in northern Uganda. This study specifically examined the factors influencing maize farmers' participation in VSLAs and assessed the factors influencing the level of maize commercialization among VSLA members and non-members. Data were collected from 420 randomly selected smallholder maize farmers and were analyzed using binary logistic and Tobit regression models. Results revealed that 52% of the farmers participated in VSLA while non-participants had maize commercialization levels of 61%. Further, male gender, age, household size, fresh maize form, hire labor, extension service, market information, phone information, access to credit, and land ownership significantly influenced maize farmers’ participation in VSLAs. Factors influencing the level of maize commercialization among VSLA member farmers include age, educational status, spot market, hire labor, land ownership, farm income, and distance to the output market. The study recommends that the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) should implement policies focused on improving access to financial services, promoting gender-sensitive training programs, and investing in rural infrastructure to reduce market access barriers, which will foster maize commercialization and economic development among smallholder farmers.https://doi.org/10.1007/s44279-025-00235-2Maize commercializationTobit regressionVSLAsSmallholder farmersNorthern Uganda
spellingShingle Sarah F. Achieng
Caleb I. Adewale
D. M. Okello
B. Mugonola
Village saving loan association membership and commercialization among smallholder maize farmers in northern Uganda
Discover Agriculture
Maize commercialization
Tobit regression
VSLAs
Smallholder farmers
Northern Uganda
title Village saving loan association membership and commercialization among smallholder maize farmers in northern Uganda
title_full Village saving loan association membership and commercialization among smallholder maize farmers in northern Uganda
title_fullStr Village saving loan association membership and commercialization among smallholder maize farmers in northern Uganda
title_full_unstemmed Village saving loan association membership and commercialization among smallholder maize farmers in northern Uganda
title_short Village saving loan association membership and commercialization among smallholder maize farmers in northern Uganda
title_sort village saving loan association membership and commercialization among smallholder maize farmers in northern uganda
topic Maize commercialization
Tobit regression
VSLAs
Smallholder farmers
Northern Uganda
url https://doi.org/10.1007/s44279-025-00235-2
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AT dmokello villagesavingloanassociationmembershipandcommercializationamongsmallholdermaizefarmersinnorthernuganda
AT bmugonola villagesavingloanassociationmembershipandcommercializationamongsmallholdermaizefarmersinnorthernuganda