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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Female-headed households, not surprisingly, have fewer male adult family members contributing labor to crop production. They compensate by increasing the labor contribution of female adults in the family, increasing the contribution of children, and making greater use of hired labor than maleheaded households. Over 90 percent of our sample of female-headed households made use of hired labor, compared to just 80 percent among male-headed households (see Table 4.1.79). As per capita expenditure rises, households rely less on family labor and more on hired labor. The contribution of hired labor rises from 17 percent in the lowest expenditure category to 34 percent in the highest. Hiring labor is not limited to higher-income households, however: over three-quarters of the households in the poorest expenditure category use some hired labor. Furthermore, the use of child family labor is not limited to poor households. Children contribute 7-8 percent of the total labor input in every expenditure category (see Table 4.1.80). Somewhat surprisingly, large farms are no more reliant on hired labor than small farms. The contribution of hired labor to total labor input remains around 21-26 percent across farm-size categories. One explanation is that large farms tend to have large families living on them, so the total supply of family labor is greater. In addition, the labor input per hectare on large farms is much smaller, as described earlier. Another pattern is that the contributions of women and children increase, while that of men decreases, on larger farms. The contribution of each type of labor differs by crop. For example, the hired labor account for 25- 30 percent of the labor input in growing maize and manioc, but 10-15 percent of the total in cultivating sorghum/millet and yams. This difference may not reflect some characteristic of the crops themselves as much as the nature of labor markets in the regions where these crops are grown. Sorghum/millet and yams are grown in the north where labor markets are less active, while maize and manioc are somewhat concentrated in the south. Another pattern is that the role of female family members is much smaller in the case of yams and manioc than for the other crops. Although cash crops are sometimes considered “male” crops, the evidence from Bénin suggests that female family members contribute more to cotton production than to any other crops with the exception of cowpeas (see Table 4.1.81). Finally, we consider the distribution of labor across activities for each type of labor. Male family members do not differ from the average in terms of the allocation of labor to each activity. On the other hand, both female family members and children spend a disproportionate share of their time on the harvest (46 percent of female labor input and 35 percent of children’s input). Hired labors 65

are involved in all activities, but land preparation is the most important one, accounting for 42 percent of their labor input (see Table 4.1.82). This difference may be related to the fact that land preparation is difficult work but easy to monitor and somewhat flexible in timing, all of which make it suited for hired labor. Harvesting is more time-sensitive, and farmers may find it harder to monitor the quality of the work of hired laborers. Wages The average wage paid to hired labor is 901 FCFA/day, although there is considerable regional variation. Wages are highest in the north, where average 1100-1200 FCFA/day and lowest in Atlantique, where they are just 532 FCFA/day. This is somewhat expected given the higher incomes in Atlantique. One explanation is that hired labor in the north is largely for cotton production so it tends to be concentrated in a few months of the year. In addition, the low population density in the north may force employers to pay a premium to attract workers from other areas. Credit Access to credit In this section, we examine access to credit, including loans received for any purpose but excluding in-kind credit such as the provision of inputs on credit. Overall, about 34 percent of all small farmers in Bénin received a loan in the 12 months prior to the survey. Roughly half of these received a loan from the formal sector (CLCAM or an NGO) and one half from the informal sector (friends, family, and moneylenders). It is rare for households to obtain a loan from formal and informal sources (see Table 4.1.83). Access to credit varies significantly from one department to another. Credit appears to be most available in Zou, where over half (63 percent) of the households received a loan. In Mono and Ouémé, the proportion is at least a third, but in other departments less than 20 percent of farm households received a loan (see Table 4.1.83). Female-headed households appear to have somewhat better access to credit, mainly due to access to formal-sector loans. This may be the result of programs to target credit at women, but it is difficult to give too much weight to this conclusion given the small number of female-headed households (39) in the sample (see Table 4.1.84). The pattern by expenditure category is somewhat erratic. Households in the poorest expenditure category had the least access to credit, but those in the second-poorest category had the best access. Formal-sector credit was most common in the middle expenditure categories. Perhaps the poorest 66

Female-headed households, not surprisingly, have fewer male adult family members contributing<br />

labor to crop production. They compensate by increasing the labor contribution of female adults in<br />

the family, increasing the contribution of children, and making greater use of hired labor than maleheaded<br />

households. Over 90 percent of our sample of female-headed households made use of hired<br />

labor, compared to just 80 percent among male-headed households (see Table 4.1.79).<br />

As per capita expenditure rises, households rely less on family labor and more on hired labor. The<br />

contribution of hired labor rises from 17 percent in the lowest expenditure category to 34 percent in<br />

the highest. Hiring labor is not limited to higher-income households, however: over three-quarters<br />

of the households in the poorest expenditure category use some hired labor. Furthermore, the use<br />

of child family labor is not limited to poor households. Children contribute 7-8 percent of the total<br />

labor input in every expenditure category (see Table 4.1.80).<br />

Somewhat surprisingly, large farms are no more reliant on hired labor than small farms. The<br />

contribution of hired labor to total labor input remains around 21-26 percent across farm-size<br />

categories. <strong>On</strong>e explanation is that large farms tend to have large families living on them, so the<br />

total supply of family labor is greater. <strong>In</strong> addition, the labor input per hectare on large farms is<br />

much smaller, as described earlier. Another pattern is that the contributions of women and children<br />

increase, while that of men decreases, on larger farms.<br />

The contribution of each type of labor differs by crop. For example, the hired labor account for 25-<br />

30 percent of the labor input in growing maize and manioc, but 10-15 percent of the total in<br />

cultivating sorghum/millet and yams. This difference may not reflect some characteristic of the<br />

crops themselves as much as the nature of labor markets in the regions where these crops are<br />

grown. Sorghum/millet and yams are grown in the north where labor markets are less active, while<br />

maize and manioc are somewhat concentrated in the south. Another pattern is that the role of<br />

female family members is much smaller in the case of yams and manioc than for the other crops.<br />

Although cash crops are sometimes considered “male” crops, the evidence from Bénin suggests that<br />

female family members contribute more to cotton production than to any other crops with the<br />

exception of cowpeas (see Table 4.1.81).<br />

Finally, we consider the distribution of labor across activities for each type of labor. Male family<br />

members do not differ from the average in terms of the allocation of labor to each activity. <strong>On</strong> the<br />

other hand, both female family members and children spend a disproportionate share of their time<br />

on the harvest (46 percent of female labor input and 35 percent of children’s input). Hired labors<br />

65

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