Vol. 7, Issue 1, Part A (2025)

Micro-finance plays a pivotal role in supporting small-scale farmers by providing them with access to financial resources necessary for agricultural investment. In the context of maize production, micro-finance can enhance household output by enabling farmers to purchase high-quality seeds, fertilizers, and equipment, thereby improving yields. The general objective of this study was to investigate the effects of agricultural micro-finance on household maize output among small-scale farmers in Chipili Farming Block, Luapula Province, Zambia. A semi-structured questionnaire consisting of closed-ended questions was used to collect primary data. Data entry and statistical analysis was conducted using STATA. Presentation of descriptive statistics was generated using Microsoft Excel 365. For inferential statistics, Chi-square, ANOVA, and linear regression analysis was employed to establish associations between variables. Findings revealed that access to microfinance significantly enhances maize yields (2,500 kg/ha for borrowers versus 1,900 kg/ha for non-borrowers) and boosts income, with microfinance recipients reporting a 33.3% increase in monthly earnings. Moreover, microfinance access improves financial literacy, credit history, and formal banking access, enabling farmers to manage resources more effectively and qualify for larger loans. The study also highlighted a positive impact on food security: 75% of microfinance users reported increased maize production, which contributed to consistent household food availability and dietary diversity. Overall, microfinance emerges as a critical factor in supporting both agricultural productivity and financial resilience for small-scale maize farmers. Key recommendations include enhancing financial literacy programs focused on budgeting, savings, and investment; diversifying financial products to meet varied farmer needs; and integrating financial services with agricultural extension for comprehensive support. To stabilize farmers' income, it advocates market access initiatives like cooperatives for better price negotiation, and policy support to expand microfinance services in rural areas. Promoting sustainable practices, involving women and youth, and investing in agricultural technology are also emphasized to enhance productivity and environmental resilience.