Farmers' Post-Harvest Grain Management Choices under Liquidity Constraints and Impending Risks: Implications for Achieving Food Security Objectives in Ethiopia

Abstract

The purpose of this paper is to explore into the relationships between farmers' post-harvest grain management practices/capacities on the one hand, and liquidity constraints and impending risks on the other, in the context of achieving food security objective at household and national levels. The findings are primarily based on a household survey data from 300 randomly selected major food grain producing peasant households in three rural districts of Ethiopia. Results indicate that farmers perceived post-harvest grain loss as an imminent risk, and that instant sales of grains after harvest are triggered by temporary but immediate liquidity preferences to meet various obligations in the absence of or limited sources of cash other than crops sales, and by an impending risk of post-harvest grain loss and the limited capacity to prevent it. While specific considerations are essential, the general policy implication is that post-harvest grain management needs to be taken on board as a matter of strategic policy concern, not just from the perspective of reducing losses but also from the view point of considering it as a viable and dynamic economic activity in terms of generation of employment, value addition and income linkages.