<![CDATA[This study assessed the impact of financial institutions' credit availability on small-scale rice farming in Mbarali district, examining factors driving access, financial institutions' views, barriers, and policy implications. The study used structured surveys for quantitative data and in-depth interviews for qualitative insights. Sampling involved random and purposive methods. Quantitative data underwent logistic regression, while qualitative data underwent content analysis. Regression analysis results indicate that farm size, level of awareness, and membership in financial institutions significantly influence credit accessibility, while farming experience shows no significant impact. The qualitative analysis revealed that financial institutions perceive agriculture financing as risky due to seasonal and investment risks, resulting in higher default rates among smallholder rice farmers. Additionally, factors inhibiting farmers from accessing credit include limited credit sources, high farm credit charges, lack of collateral, complex loan application procedures, and high-interest rates. This study offers unique insights into agricultural lending, providing practical recommendations for enhancing financial literacy, promoting institution awareness and membership, and emphasizing risk mitigation. This research informs policymakers, financial institutions, and farmers, optimizing credit access and risk management in agriculture. The study findings underscore the need for targeted financial inclusion strategies to address the revealed barriers and promote sustainable agricultural practices among smallholder rice farmers.]]>
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