Smallholder Farmers Access to Agricultural Credit and Its Impact

The major concern of this study is assessing the impact of agricultural credit on gross farm income, consumption level and asset creation of smallholder farmers, by identifying factors affecting credit access and trend of credit use of smallholder farmers. Primary data were collected from 150 farmers, and secondary data from relevant organizations and pertinent documents of North Gondar Zone, Ethiopia. Data were analyzed using descriptive statistics, binary logit and Cobb-Douglas production function models. Therefore this study has contributed that, agricultural input credit access and proper use helped in income improvement, consumption level and asset creation of smallholder farmer’s welfare living and should be diversified to include more income generative technologies and farmers.