Determinants of farmers’ intentions to seek Agricultural Value Chain Financing in Tanzania

Abstract

AbstractThis study examines the determinants of sunflower farmers’ intention to seek Agricultural Value Chain Financing (AVCF) in Tanzania. A cross-sectional survey design was used to collect data from 184 farmers in Singida and Dodoma. Partial least squares structural equation modelling (PLS-SEM) was engaged to test the hypotheses. The findings revealed a significant link between perceived benefit, perceived risk, knowledge, social enterprise embeddedness, and farmers’ intention to seek AVCF. However, perceived behavioral control over AVCF and subjective norms demonstrated an insignificant relationship with farmers’ intention to seek AVCF. The results of the present study imply that stakeholders and providers of AVCF must create adequate farmers’ awareness in terms of perceived benefits and risks involved in AVCF. Moreover, the embeddedness of social enterprises in AVCF creates social implications among farmers, through supporting social missions and improving the lives of vulnerable farmers, hence leading to poverty eradication among defenseless farmers.

Keywords

• Agricultural value chain financing
• sunflower farmers’ intentions
• theory of planned behaviour
• social enterprise embeddedness
• Tanzania
• Eric Liguori, Florida State University, United States