Abstract:
The Warehouse Receipt System (WRS) offers an opportunity to smallholder farmers by providing collateral
guarantees to financial institutions to provide credit for agricultural inputs through their crops stored at the
warehouses. The objective of this paper was to examine the contribution of agricultural inputs credit accessed
through WRS on coffee farms productivity in Mbinga District, Tanzania. A household survey from a sample of
390 smallholder coffee farmers was conducted. Ordinary Least Squares (OLS) was used to examine the impact of
WRS agricultural-credit on coffee yield. Study results show that credit accessed through WRS had a significant
(p≤0.05) and positive influence on coffee yield. Moreover, sex, years of schooling, and extension services had a
significant effect on coffee yields. The intervention policies are needed in order to enable more farmers to access
the WRS services, extension services, education and increasing women’s participation in WRS in the study area.
