Micro-credit accessibility and its impact on agricultural productivity of women-led farms

Abstract:

When Sureerat, a rice farmer in Songkhla province, received her first micro-credit loan of 30,000 THB, she invested it in certified seed and a small mechanical transplanter a decision that doubled her net income within two seasons. Stories like hers prompted this research, which examined the relationship between micro-credit accessibility and agricultural productivity among 240 women-led farms in southern Thailand's Songkhla and Pattani provinces during 2022–2023. A structured questionnaire captured credit history, input use, yield, and income data. Women with active micro-credit recorded 41.3% higher rice yield (3.87 vs. 2.74 t ha⁻¹) and 58.6% higher net farm income compared with non-borrowers. Regression analysis identified loan size, repayment flexibility, and extension contact as the strongest predictors of productivity gain. However, 34.2% of borrowers reported debt-servicing difficulties in the second year. The findings suggest that micro-credit lifts productivity when paired with technical training, but standalone lending without advisory support risks indebtedness without sustained yield improvement.