ENHANCING SMALLHOLDER FARMERS' LIVELIHOODS: THE IMPACT OF CAPITAL PROVISION ON PRODUCTIVITY, INCOME, AND SUSTAINABILITY

Abstract

Considerable financial limitations affect small-scale farmers, impeding their livelihood and agricultural output. Due to limited loan availability, high input costs, and unstable markets make it more difficult for farmers to maintain and grow their farming enterprises. Smallholder farmer's access to cash can help them recognize modern farming technologies, increase production, and invest in high-quality inputs. This review article investigates the influence of financial support on small-scale farming, focusing on capital-providing options such as microfinance, government subsidies, and cooperative funding. The article also assesses the success of these financial models in various socioeconomic contexts, highlighting the importance of institutional support and policy actions. According to research, capital access significantly boosts crop productivity, household income, and food security. However, issues such as loan repayment difficulties and financial literacy gaps persist. The article discusses solutions for ensuring small-scale farmers' long-term financial inclusion, such as digital financial services and community-based funding projects. The findings imply that a well-structured capital provision framework can have a transformative impact on the lives of small-scale farmers.