Impact Of Agricultural Market Reforms On Smallholder Farmers In ...

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Cotton area per GV ranges from 145 ha in the south to almost 500 ha in Borgou, the national average being 384. Similarly, each GV produces an average of 360 tons of seed cotton, with GVs in Borgou and Atacora being larger than those in Zou and the southern departments. The revenue from cotton sales averages 74 million FCFA (see Table 4.3.27). The higher cotton production in the north is due to both greater numbers of cotton farmers and larger cotton areas on each farm. In Borgou, the average GV has 1.5 hectares of cotton per member, roughly twice the average area among GVs in the south (see Table 4.3.28). Provision of credit One of the most important functions of the GVs is to channel credit to farmers for the purchase of inputs and to facilitate loan recovery. According to the GV survey, 98 percent of the GVs provide inputs on credit to members. In addition, some GVs also provide loans in cash to members. Overall, 72 percent of GVs offer cash credit, with the percentage being highest in Atacora (94 percent) and Borgou (88 percent) (see Table 4.3.29). No interest is charged to members for this credit, although presumably the interest costs are built into the cotton and input prices. Unlike in-kind input credit, cash credit carries an interest charge, typically around 12 percent per year (see Table 4.3.30). Given the annual fluctuation in the level of credit provided to farmers, the survey asked for the maximum credit level over the previous year. The maximum input credit over the year averaged 25 million FCFA per GV. At the time of the survey, however, the amount of outstanding input credit was just 100 thousand FCFA per year. With regard to cash credit, highest value of this debt over the year was considerably less than the in-kind input credit (5 million FCFA per GV) but the current debt was higher (283 thousand FCFA) (see Tables 4.3.31 and 4.3.32). In order to provide credit, GVs obtain loans from various sources. The in-kind credit provided to members in the form of inputs is based on in-kind credit provided to the GVs from SONAPRA. Cash loans to members are based on loans obtained from banks, non- governmental organizations (NGOs), and other institutions. For example, 72 percent of the GVs offer cash credit to members and 71 percent obtained credit from other sources (see Table 4.3.33). Most of this comes from banks at interest rates of around 17 percent. Although NGOs offer lower interest rates, the 125
available credit from this source is much smaller (see Table 4.3.34). Thus, GVs tend to subsidize the interest rates on the cash loans they offer to members. Almost all GVs (96 percent) have bank accounts. The current balance of the account was around 700 thousand FCFA on average, but the maximum balance over the course of the previous year was 1.5 million FCFA. The size of the bank balances (both current and maximum) is largest in Zou and Borgou (see Table 4.3.35). 4.3.7 Budgets In this section, we consider the sources of revenue and expenditure patterns of the groupements villageois. Revenue The GV survey collected information on various sources ofrevenue, including input distribution, crop marketing, and fees. The results indicate that cotton marketing is the most important source of income for GVs, representing 80 percent of the total. Member dues are the second in importance, accounting for about 8 percent of the total (see Table 4.3.36). At the same time, the survey results suggest considerable variation in the sources of income across GVs. For example, among the 17 GVs surveyed in Atacora, member dues contributed 80 percent of total revenue. Member dues were also the most important source of revenue for the GVs in Ouémé and Mono. In most regions, there are no fees or charges associated with input delivery. The only exception was some GVs in Zou that earn income from fees for fertiizer and pesticide distribution. Expenditures The expenditures of the GVs are more varied than the sources of income, with no single item dominating the budget. They include storage, dues to USPPs and UDPs, travel costs, maintenance, transportation, and investment in new storage facilities, as well as community investments such as schools, roads, and health centers. 126
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IMPACT OF AGRICULTURAL MARKET REFOR
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TABLE OF CONTENTS CHAPTER 1 - INTRO
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5.1.10 Expenditure patterns .......
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CHAPTER 1 - INTRODUCTION 1.1 Backgr
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villageois, (GV)) was needed as the
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CHAPTER 2: POLICY BACKGROUND FOR BE
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2.3 Evolution of Economic Policy 2.
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Under pressure from the World Bank
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anking system has been restored to
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Fertilizer can be imported outside
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particularly urban wage-earners. On
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Soulé (1996) describes the evoluti
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led to a more sustainable agricultu
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Table 2.4 - Gross farm revenue from
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Malawi’s economy is heavily depen
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the reduction of its operations in
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crops is also difficult because tob
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Table 3.1 CROP 1982/83 1983/84 1984
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CHAPTER 4: RESULTS OF THE BÉNIN SM
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where W v is the weight for a house
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heads. This suggests that some of t
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And school attendance is much highe
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Crop production is the main activit
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(33 percent). Livestock income is m
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Somewhat surprisingly, the relation
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It is no more common among richer h
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production, and women actually spen
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Seed use by crop Although only 18 p
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Looking at the results by departmen
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Ouémé presents an unusual case: j
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Market prices have significant effe
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policies of SONAPRA to discourage
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crops are responsible for this incr
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Respondents were asked whether the
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Female-headed households, not surpr
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households are not considered credi
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In almost every category of agricul
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This discussion implies that farms
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eturns per hectare and labor-intens
Page 82 and 83: farm household and tends to be smal
Page 84 and 85: Surprisingly, the value of sales as
Page 86 and 87: Finally, proximity to an all-season
Page 88 and 89: Changes in crop marketing In this s
Page 90 and 91: Poor households are more likely to
Page 92 and 93: it is clear that virtually all grow
Page 94 and 95: production to total expenditure is
Page 96 and 97: a significant number of household (
Page 98 and 99: non-food spending. These are follow
Page 100 and 101: Larger farms are associated with hi
Page 102 and 103: This would not be surprising in lig
Page 104 and 105: Female-headed households appear to
Page 106 and 107: poorest expenditure category to jus
Page 108 and 109: headed household were more likely t
Page 110 and 111: Households in every expenditure cat
Page 112 and 113: An important result of this analysi
Page 114 and 115: oad network, although those citing
Page 116 and 117: questions posed by the IFPRI-LARES
Page 118 and 119: With regard to cotton marketing, al
Page 120 and 121: Village leaders were asked to ident
Page 122 and 123: Marketing patterns Village leaders
Page 124 and 125: 4.3: Results of the Bénin Survey o
Page 126 and 127: 4.3.2 Survey methods At the time of
Page 128 and 129: officers have CM2 certificates. Thi
Page 130 and 131: Suppliers The GV representatives we
Page 134 and 135: The largest cost items are schools
Page 136 and 137: members and 10 percent of the membe
Page 138 and 139: Table 4.1.1-Description of sample o
Page 140 and 141: Table 4.1.7-Age, education, and lit
Page 142 and 143: Table 4.1.13-Ethnic background of h
Page 144 and 145: Table 4.1.19-Importance of each sou
Page 146 and 147: Table 4.1.25-Number of plots and ar
Page 148 and 149: Table 4.1.31-Land tenure by expendi
Page 150 and 151: Table 4.1.37-Change in labor alloca
Page 152 and 153: Table 4.1.42-Seed use by sex of hea
Page 154 and 155: Table 4.1.47-Perceived change in av
Page 156 and 157: Table 4.1.54-Share of producers of
Page 158 and 159: Table 4.1.59-Fertilizer use by farm
Page 160 and 161: Table 4.1.64-Characteristics of fer
Page 162 and 163: Table 4.1.69-Change in fertilizer a
Page 164 and 165: Table 4.1.75-Allocation of labor by
Page 166 and 167: Table 4.1.82-Allocation of labor by
Page 168 and 169: Table 4.1.89-Change in credit avail
Page 170 and 171: Table 4.1.94-Percent of households
Page 172 and 173: Table 4.1.98-Percent of households
Page 174 and 175: Table 4.1.102-Area allocation by cr
Page 176 and 177: Table 4.1.106-Area allocation by cr
Page 178 and 179: Table 4.1.110-Marketed share of out
Page 180 and 181: Table 4.1.114-Marketed share of out
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Table 4.1.117-Regression for market
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Table 4.1.120-Change in the type of
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Table 4.1.128-Perceived change in r
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Table 4.1.135-Main reason for stori
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Table 4.1.140-Summary of food expen
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Table 4.1.142-Percent of households
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Table 4.1.144-Food consumption by e
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Table 4.1.149-Results of regression
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Table 4.1.152-Value of household as
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Table 4.1.156-Value of household as
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Table 4.1.160-Housing characteristi
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Table 4.1.162-Housing characteristi
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Table 4.1.165-Main source of water
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Table 4.1.170-Source of information
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Table 4.1.176-Source of information
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Table 4.1.181-Regression for percei
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Table 4.2.5-Change in number of veh
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Table 4.2.12-Availability and sourc
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Table 4.2.21-Number of GFs per vill
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Table 4.2.30-Percentage of villages
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Table 4.2.34-Distribution of villag
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Table 4.3.1-Distribution of GVs by
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Table 4.3.9-Number of each type of
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Table 4.3.12-Percentage of secretar
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Table 4.3.19-Distribution of GVs by
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Table 4.3.24-Percentage of inputs s
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Table 4.3.32-Average value of curre
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Table 4.3.40-Percentage of GVs in w
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CHAPTER 5 - RESULTS FROM THE MALAWI
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The weights are used to calculate a
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On average, around 20 percent of th
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agricultural work. Other less commo
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5.1.4 Time allocation In Malawi, as
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attributed it to the fact that fert
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insignificant. The coefficient on t
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As in the results from the previous
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most important sources of input on
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applied for credit compared to 20 p
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less than 1 mt per ha which are fai
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5.1.9 Agricultural marketing Market
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Households that belong to a club al
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most important contractors are the
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indicates that the extent of povert
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wheat, and fruits and nuts, a highe
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Surprisingly, the education of the
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Housing characteristics The overwhe
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It was also important to find out w
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Surprisingly, tobacco growers are m
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Over three-quarter of the EPAs repo
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The changes in the number and types
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5.2.11 Storage Facilities On averag
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Table 5.2 - Household characteristi
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Table 5.7 - Percentage of household
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Table 5.12 - Farm labor use and all
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Table 5.15 - Determinants of the de
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Table 5.17 - Sources of fertilizer
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Table 5.22 - Access and use of cred
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Table 5.25 - Percent of households
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Table 5.34 - Crop disposal by type
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Table 5.38 - Determinants of Market
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Table 5.42 - Summary of expenditure
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Table 5.45 - Food consumption by so
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Table 5.51 - Food consumption by ex
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Table 5.56 - Determinants of per ca
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Table 5.59 Percent of households ow
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Table 5.62 - Characteristics of the
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Table 5.68 - Determinants of percei
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Table 5.71 - Average yields per cro
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Table 5.77 - Changes in the availab
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Figure 5.1 Distribution of househol
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Figure 5.7 - Percentage of Househol
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CHAPTER 6 - SUMMARY, CONCLUSIONS AN
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Fertilizer Half of the far
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Regression analysis indicates that
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Among those seeing improvement, the
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Agricultural markets Three quart
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The economic reforms have boosted p
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department. The farms with very lit
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Strengthen the extension service by
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The most time-consuming agricultura
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Most common means of transport to t
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Small farmers in Malawi are mainly
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households have less assets and les
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Place more serious efforts to impro
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REFERENCES Ahoyo Adjovi, N.R. and F
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