Smallholder farmers’ crop marketing decisions

I have just arrived home after spending a week ”in the field” participating in a survey for Feed the Future Incorporating Nutrition in Value Chains. Here is one of the lessons i have learnt from this exercise:

Smallholder farmers know that prices will be very high starting from October to February when many people have exhausted their harvest. They also know that they can make a lot of money if sell their produce during these months. However, because they are pressed with immediate cash needs now, they decide to forgo potential income during the lean season by selling their produce soon after harvest. The most important thing to note here is that they make this decision consciously.

I am starting to get the feeling that if development projects are to help smallholder farmers up their incomes from agricultural output, they should support them during harvest time by ”locking” the produce for a month or two while giving the farmers soft loans to enable them handle household pressures. By the time they “unlock” the produce, the prices would have improved such that farmers can repay the loan and remain with ”change”

P/S: some vendors are misinforming farmers that soy prices will drop next week which is making some farmers sell their produce in a panic mode “while prices are still high”

Advertisements

Published by

Edwin kenamu

I am an agricultural economist. I have a strong passion in understanding agricultural policy frameworks and how they can be improved so as to enhance livelihoods in agricultural households.

One thought on “Smallholder farmers’ crop marketing decisions”

  1. and if these farmers could atleast have other IGAs, it can help them to keep their produce or even add value to the produce so as to fetch a higher market price

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s