Agricultural credit is a vital service for agricultural growth and development. Against this milieu, this study examined the effect of this variable on farm income in the Talensi District of the Upper East region of Ghana. Through a two-stage sampling approach, 168 crop farmers were randomly selected. Heckman two-stage treatment effect model was estimated to correct for selectivity biases. Empirical results from the study indicated that the probability of accessing credit was higher for highly educated farmers, farmers belonging to a farmer group, farmers with large farm size, farmers who had access to extension service, female farmers and the elderly. Further, access to credit had a positive significant effect on farm income. Therefore, the study concluded that improving access to agricultural credit service could be a potential source of poverty reduction among farmers in the district. To enhance farmers’ access to agricultural credit, intensification of farmer-based-organization is highly recommended. Farm-level policies oriented towards farmer’s access to financial credit should also be encouraged.