Abstract
It is widely believed that limited access of small scale farmers to agricultural credit is one of the key causes of rural poverty and a major constraint to adoption of innovations in Sub-Saharan Africa. Since the early 1960s, many strategies to access agricultural credits have been implemented with success. This study assessed the effects of warrantage, a community-based micro credit system, on poor small resource farmers’ income and livelihoods of the semi-arid area of Burkina Faso. Two broad socio economic surveys were conducted among 1040 farmers and 440 household heads. Data were collected from 58 inventory credit warehouses and 36 input shops established in the study areas. The results showed that the warrantage system is dominated by women farmers (who produce 60% of the stored harvests) and appears as the main source of agricultural credit. The profit (up to 140%) provided allows farmers to purchase external inputs such as inorganic fertilizers. This resulted in higher crop productivity and a substantial increase of farmers’ income which in turn improve farmers’ livelihood. Key words: Inventory credit system, mineral fertilizer, staple crop production, small farmers.
Highlights
Agriculture is the engine of economic growth in the SemiArid Sudano-Sahelian zone of West Africa
From the socio economic survey carried out on 1040 households, the results revealed that very few farmers visited an input shop and/or purchased inorganic fertilizer (Table 5); only 33% are aware of community based infrastructure; 49% are involved in the warrantage system
The problem of access of small poor farmers to agricultural credit resulted in a urgent need to find appropriate solutions to support agricultural production
Summary
Agriculture is the engine of economic growth in the SemiArid Sudano-Sahelian zone of West Africa. According to FAO (2012), it is practiced by 80% of the population and provides 35% of the countries’ gross domestic product (GDP). Despite the efforts of the Millennium Development Goals (MDGs) to eradicate extreme poverty and hunger, Sub-Saharan Africa (SSA) is still facing a very large food deficit contributing to hunger, poverty and malnutrition (FAOSTAT, 2010; Schaffert, 2007). Food production is becoming insufficient because of the growing population. According to Adesina (2009) and Bationo and Wasma (2011), the decrease in agricultural productivity is linked to poor natural resources, unadaptable socio-economic and policy environment and to inappropriate climatic conditions. Agricultural soils in the Sahelian zone are characterized by predominantly sandy texture and low organic matter which results in very low fertility, with respect
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