Evaluation of the Effectiveness of Microcredit Programs in Improving Farmers' Welfare

Abstract

This study evaluates the effectiveness of microcredit programs in enhancing the welfare of farmers, particularly in rural and agricultural regions. Microcredit initiatives have been widely implemented as a strategy to alleviate poverty and support economic development by providing small-scale financial assistance to low-income individuals, including farmers. Using a mixed-methods approach, this research analyzes both quantitative data such as income levels, productivity, and access to resources and qualitative insights from interviews and focus groups with program participants. The findings indicate that while microcredit programs have a generally positive impact on farmers' welfare, the extent of this improvement varies depending on factors such as loan utilization, training availability, and market access. The study concludes with policy recommendations to optimize microcredit schemes to ensure sustainable benefits for farming communities