Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique

Dercio Alberto Macuacue; Benxi Lin

doi:doi:10.11648/j.ijae.20251005.19

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Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique

Dercio Alberto Macuacue^*

, Benxi Lin

Published in International Journal of Agricultural Economics (Volume 10, Issue 5)

Received: 17 September 2025 Accepted: 29 September 2025 Published: 27 October 2025

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Abstract

In this paper, we study the farmers' choices of financial services for drip irrigation systems in Southern Mozambique using survey data collected from 150 household farmers, involving 3 main irrigation schemes in Maputo, Gaza, and Inhambane. The statistical results show the significance of the outlined factors in the performance of small household farmers' adoption of financing options for irrigation. We find that farmers are more likely to adopt financial services for drip irrigation under subsidized interest rates and low irrigation costs. Farmers with lower incomes are less likely to adopt financial services compared to others. Additionally, the main gaps between the supply and demand of irrigation-based financial services can be explained by the farmers’ inability to meet the funding requirements. The solution lies thus in improving the quality of both demand and supply on its critical dimension, which also implies an increase in the economic activity of financing institutions and small farmers. Our study provides useful policy implications for designing efficient financing programs to enhance farmers’ accessibility to funds. Thus, implementing special public policies to minimize financial gaps among small household farmers can play a potential role in driving the household farmers sub-sector, and public incentives are crucial in ensuring sustainable irrigation programs aimed at low-income farmers. The study also suggests the creation of funding institutions aimed at irrigation, which can expand the range of financing mechanisms and take diverse financial services to low-income farmers in rural areas, such as savings, subsidies, vouchers and other types of credit.

Published in	International Journal of Agricultural Economics (Volume 10, Issue 5)
DOI	10.11648/j.ijae.20251005.19
Page(s)	296-302
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Financial Services, Drip Irrigation, Household Farmers, Southern Mozambique, Africa, Logistic Regression

References

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APA Style

Macuacue, D. A., Lin, B. (2025). Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique. International Journal of Agricultural Economics, 10(5), 296-302. https://doi.org/10.11648/j.ijae.20251005.19

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Macuacue, D. A.; Lin, B. Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique. Int. J. Agric. Econ. 2025, 10(5), 296-302. doi: 10.11648/j.ijae.20251005.19

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AMA Style

Macuacue DA, Lin B. Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique. Int J Agric Econ. 2025;10(5):296-302. doi: 10.11648/j.ijae.20251005.19

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@article{10.11648/j.ijae.20251005.19,
  author = {Dercio Alberto Macuacue and Benxi Lin},
  title = {Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique
},
  journal = {International Journal of Agricultural Economics},
  volume = {10},
  number = {5},
  pages = {296-302},
  doi = {10.11648/j.ijae.20251005.19},
  url = {https://doi.org/10.11648/j.ijae.20251005.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20251005.19},
  abstract = {In this paper, we study the farmers' choices of financial services for drip irrigation systems in Southern Mozambique using survey data collected from 150 household farmers, involving 3 main irrigation schemes in Maputo, Gaza, and Inhambane. The statistical results show the significance of the outlined factors in the performance of small household farmers' adoption of financing options for irrigation. We find that farmers are more likely to adopt financial services for drip irrigation under subsidized interest rates and low irrigation costs. Farmers with lower incomes are less likely to adopt financial services compared to others. Additionally, the main gaps between the supply and demand of irrigation-based financial services can be explained by the farmers’ inability to meet the funding requirements. The solution lies thus in improving the quality of both demand and supply on its critical dimension, which also implies an increase in the economic activity of financing institutions and small farmers. Our study provides useful policy implications for designing efficient financing programs to enhance farmers’ accessibility to funds. Thus, implementing special public policies to minimize financial gaps among small household farmers can play a potential role in driving the household farmers sub-sector, and public incentives are crucial in ensuring sustainable irrigation programs aimed at low-income farmers. The study also suggests the creation of funding institutions aimed at irrigation, which can expand the range of financing mechanisms and take diverse financial services to low-income farmers in rural areas, such as savings, subsidies, vouchers and other types of credit.
},
 year = {2025}
}

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TY  - JOUR
T1  - Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique

AU  - Dercio Alberto Macuacue
AU  - Benxi Lin
Y1  - 2025/10/27
PY  - 2025
N1  - https://doi.org/10.11648/j.ijae.20251005.19
DO  - 10.11648/j.ijae.20251005.19
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 296
EP  - 302
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20251005.19
AB  - In this paper, we study the farmers' choices of financial services for drip irrigation systems in Southern Mozambique using survey data collected from 150 household farmers, involving 3 main irrigation schemes in Maputo, Gaza, and Inhambane. The statistical results show the significance of the outlined factors in the performance of small household farmers' adoption of financing options for irrigation. We find that farmers are more likely to adopt financial services for drip irrigation under subsidized interest rates and low irrigation costs. Farmers with lower incomes are less likely to adopt financial services compared to others. Additionally, the main gaps between the supply and demand of irrigation-based financial services can be explained by the farmers’ inability to meet the funding requirements. The solution lies thus in improving the quality of both demand and supply on its critical dimension, which also implies an increase in the economic activity of financing institutions and small farmers. Our study provides useful policy implications for designing efficient financing programs to enhance farmers’ accessibility to funds. Thus, implementing special public policies to minimize financial gaps among small household farmers can play a potential role in driving the household farmers sub-sector, and public incentives are crucial in ensuring sustainable irrigation programs aimed at low-income farmers. The study also suggests the creation of funding institutions aimed at irrigation, which can expand the range of financing mechanisms and take diverse financial services to low-income farmers in rural areas, such as savings, subsidies, vouchers and other types of credit.

VL  - 10
IS  - 5
ER  -

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Author Information

Dercio Alberto Macuacue

College of Economics and Management, Fujian Agricultural and Forestry University, Fuzhou, China

Contact Email

http://orcid.org/0009-0009-9449-506X
Benxi Lin

College of Economics and Management, Fujian Agricultural and Forestry University, Fuzhou, China

Contact Email

http://orcid.org/0000-0001-7479-0066

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APA Style

Macuacue, D. A., Lin, B. (2025). Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique. International Journal of Agricultural Economics, 10(5), 296-302. https://doi.org/10.11648/j.ijae.20251005.19

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ACS Style

Macuacue, D. A.; Lin, B. Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique. Int. J. Agric. Econ. 2025, 10(5), 296-302. doi: 10.11648/j.ijae.20251005.19

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AMA Style

Macuacue DA, Lin B. Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique. Int J Agric Econ. 2025;10(5):296-302. doi: 10.11648/j.ijae.20251005.19

Copy | Download

@article{10.11648/j.ijae.20251005.19,
  author = {Dercio Alberto Macuacue and Benxi Lin},
  title = {Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique
},
  journal = {International Journal of Agricultural Economics},
  volume = {10},
  number = {5},
  pages = {296-302},
  doi = {10.11648/j.ijae.20251005.19},
  url = {https://doi.org/10.11648/j.ijae.20251005.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20251005.19},
  abstract = {In this paper, we study the farmers' choices of financial services for drip irrigation systems in Southern Mozambique using survey data collected from 150 household farmers, involving 3 main irrigation schemes in Maputo, Gaza, and Inhambane. The statistical results show the significance of the outlined factors in the performance of small household farmers' adoption of financing options for irrigation. We find that farmers are more likely to adopt financial services for drip irrigation under subsidized interest rates and low irrigation costs. Farmers with lower incomes are less likely to adopt financial services compared to others. Additionally, the main gaps between the supply and demand of irrigation-based financial services can be explained by the farmers’ inability to meet the funding requirements. The solution lies thus in improving the quality of both demand and supply on its critical dimension, which also implies an increase in the economic activity of financing institutions and small farmers. Our study provides useful policy implications for designing efficient financing programs to enhance farmers’ accessibility to funds. Thus, implementing special public policies to minimize financial gaps among small household farmers can play a potential role in driving the household farmers sub-sector, and public incentives are crucial in ensuring sustainable irrigation programs aimed at low-income farmers. The study also suggests the creation of funding institutions aimed at irrigation, which can expand the range of financing mechanisms and take diverse financial services to low-income farmers in rural areas, such as savings, subsidies, vouchers and other types of credit.
},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Farmers’ Choices of Financial Services for Drip Irrigation System in Southern Mozambique

AU  - Dercio Alberto Macuacue
AU  - Benxi Lin
Y1  - 2025/10/27
PY  - 2025
N1  - https://doi.org/10.11648/j.ijae.20251005.19
DO  - 10.11648/j.ijae.20251005.19
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 296
EP  - 302
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20251005.19
AB  - In this paper, we study the farmers' choices of financial services for drip irrigation systems in Southern Mozambique using survey data collected from 150 household farmers, involving 3 main irrigation schemes in Maputo, Gaza, and Inhambane. The statistical results show the significance of the outlined factors in the performance of small household farmers' adoption of financing options for irrigation. We find that farmers are more likely to adopt financial services for drip irrigation under subsidized interest rates and low irrigation costs. Farmers with lower incomes are less likely to adopt financial services compared to others. Additionally, the main gaps between the supply and demand of irrigation-based financial services can be explained by the farmers’ inability to meet the funding requirements. The solution lies thus in improving the quality of both demand and supply on its critical dimension, which also implies an increase in the economic activity of financing institutions and small farmers. Our study provides useful policy implications for designing efficient financing programs to enhance farmers’ accessibility to funds. Thus, implementing special public policies to minimize financial gaps among small household farmers can play a potential role in driving the household farmers sub-sector, and public incentives are crucial in ensuring sustainable irrigation programs aimed at low-income farmers. The study also suggests the creation of funding institutions aimed at irrigation, which can expand the range of financing mechanisms and take diverse financial services to low-income farmers in rural areas, such as savings, subsidies, vouchers and other types of credit.

VL  - 10
IS  - 5
ER  -

Copy | Download