Abstract

Agricultural finance in Sudan is considered as one of the main factors affecting food crop production. This study provides an overarch analysis of current trends in financing the main field crops in the public irrigated schemes of the River Nile State (RNS) and analyzes various agricultural credit mechanisms that have been used in the state. It assesses a plausible framework in order to increase agricultural production and tenants returns in RNS. It was on this basis, this research undertook Elzeidab scheme of RNS as a case study. Primary data were collected by using structured questionnaires for seventy (70) randomly selected respondents from Elzeidab scheme. Statistical analysis was employed to assess current situation in financing main food crops in the scheme. The paper unveiled that these crops are described as low value crops. It also revealed that the formal finance is characterized as inefficient to serve the target part of farmers, while the informal one is limited in covering the farmers’ expenditures. The paper concluded that the credit market in RNS is not well developed and the majority of households (93%) have no access to formal financial institutions. This allows for the recommendation that improving finance institutions will enable the tenants to improve their farm resources use.

Key words: Agricultural credit, field crops, public schemes.