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

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

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Regression analysis indicates that high market surplus ratios are related to small households, large farms, cotton production, irrigation, GV and tontine membership, and radio ownership. Even after controling for these factors, Atacora and Borgou have lower ratios, while Atlantique has the highest. Perceived changes in marketing patterns Farmers report that the volume of crop sales has increased since 1992, particularly for manioc, yams, and “other crops”. Poor farmers and female-headed farmers were less likely to report increased sales. Most farmers (85 percent) have seen no change in the composition of buyers, but most of those that do see a change say that the role of private traders has increased. About half the farmers say that the number of crop buyers has increased since 1992, while 8 percent say it has fallen. Farmers believe that the volatility of agricultural prices is better or no different than in 1992. Thirty-seven percent report an improvement in the availability of market information, while 8 percent say it has gotten worse. More households say that roads have deteriorated than say they have improved. Consumption expenditure Average per capita expenditure, including the value of home produced food, is 105 thousand FCFA (US$ 167). Per capita expenditure is highest in Atlantique and lowest in Atacora and Mono. Per capita expenditure is only slightly higher (6 percent) among male-headed households. Per capita expenditure does not increase with farm-size, although home production is a larger share of the total for large farms. Food accounts for 53 percent of expenditure, and half of the food comes from home production. The diets of farm households are relatively diversified: households consume an average of 16 of the 21 food categories examined. Maize represents 19 percent of food expenditure or 10 percent of total expenditure. 327

Poor households devote a larger share of their budget to food and get a larger proportion of their food from own production. As incomes rise, households spend a smaller share of their food budget on grains and root crops and a larger share on animal products, beverages, and meals outside the home. Regression analysis indicates that poverty is associated with large families with a high proportion of children, uneducated heads of household, small farms, mud-brick walls, and not owning tables, radios, and motorbikes. Even after controling for these factors, households in Atlantique are less poor than those in other departments. Adopting the same poverty line and definitions of a 1994-95 household survey, we estimate the poverty rate to be 22 percent. This is significantly lower than the rate estimated by the earlier survey, suggesting that rural poverty has declined. Using the World Bank’s international poverty line of US$ 1/day, however, practically all (95 percent) of Benin’s farm households are poor. Sources of information Just 19 percent of farmers reported contact with an extension agent in the past year. Extension contact does not appear to be biased against poor or small farms, but femaleheaded household report fewer contacts than male-headed households. Friends and family are the main source of information on seed varieties, production methods, and agricultural markets. Extensions agents are slightly more important than friends and family as a source of information on fertilizer, pest control, and agricultural policies. Perception of changes in overall well-being Farmers are generally positive about changes in the standard of living of their household since 1992. Slightly more than half the households (52 percent) reported improved conditions and 28 percent reported poorer conditions. Regression analysis indicates that perceived improvements in household well-being are more common among poor households with televisions and contact with extension agents. In addition, households located near sous-préfecture centers and those in Atacora and Borgou are significantly more positive than those in other departments. 328

Regression analysis indicates that high market surplus ratios are related to small households,<br />

large farms, cotton production, irrigation, GV and tontine membership, and radio ownership.<br />

Even after controling for these factors, Atacora and Borgou have lower ratios, while<br />

Atlantique has the highest.<br />

Perceived changes in marketing patterns<br />

<strong>Farmers</strong> report that the volume of crop sales has increased since 1992, particularly for<br />

manioc, yams, and “other crops”. Poor farmers and female-headed farmers were less likely<br />

to report increased sales.<br />

Most farmers (85 percent) have seen no change in the composition of buyers, but most of<br />

those that do see a change say that the role of private traders has increased.<br />

About half the farmers say that the number of crop buyers has increased since 1992, while 8<br />

percent say it has fallen.<br />

<strong>Farmers</strong> believe that the volatility of agricultural prices is better or no different than in 1992.<br />

Thirty-seven percent report an improvement in the availability of market information, while 8<br />

percent say it has gotten worse.<br />

More households say that roads have deteriorated than say they have improved.<br />

Consumption expenditure<br />

Average per capita expenditure, including the value of home produced food, is 105 thousand<br />

FCFA (US$ 167).<br />

Per capita expenditure is highest in Atlantique and lowest in Atacora and Mono.<br />

Per capita expenditure is only slightly higher (6 percent) among male-headed households.<br />

Per capita expenditure does not increase with farm-size, although home production is a larger<br />

share of the total for large farms.<br />

Food accounts for 53 percent of expenditure, and half of the food comes from home<br />

production.<br />

The diets of farm households are relatively diversified: households consume an average of 16<br />

of the 21 food categories examined.<br />

Maize represents 19 percent of food expenditure or 10 percent of total expenditure.<br />

327

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