The Effects of Revolving Funds on Milk Yields in Kenya
Norah Chepkirui, George Owuor, Lawrence Kibet
Asian Journal of Agricultural Extension, Economics & Sociology · pp. 65–71 · Published 26 Mar 2022
10.9734/ajaees/2022/v40i530887Abstract
The study primarily aimed at determining the effects of revolving funds on milk yields among smallholder dairy farmer groups in Bomet County, Kenya. A cross-sectional quantitative data from 288 sampled dairy farmers, both the adopters and non-adopters of revolving funds was used. Propensity score matching technique was employed and the study results demonstrated that adopters of revolving funds had no significance difference with the non-adopters. This contradicts with the theory of credit access and the possible explanation could be the diversion of these funds to other non-farm sectors. Hence it is recommended that factors inhibiting maximum absorption of farm credit in the farm sectors should be considered by the policy analysts. Specifically, a policy debate of whether to give cash or farm input should be reinforced to ensure that monies set for input purchases are directed to the intended sectors.
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