Expanding the Agricultural Finance Frontier: A Kenyan Case

Agriculture is the mainstay of the Kenyan Economy. However, agriculture has experienced low productivity over the years. Poor access to agricultural finance has been identified as a contributing factor to low crop productivity. Kenyan agriculture has undergone some fundamental changes which have profoundly affected agricultural financial services. In addition, most financiers shy away from lending to the agricultural sector because of the covariant risks related to rain-fed agriculture. Given this background, we undertake a comparative analysis of emerging models of agricultural finance that have expanded the agricultural finance frontier to the smallholder farmers. Key findings indicate that demand for farming credit takes the highest proportion of the credit needs among the rural households, thus accentuating the importance of agricultural finance. The state run model of agricultural financing has the lowest financial sustainability. On the contrary, the community financing models are the most likely drivers of change in the rural finance landscape.Agribusiness, Agricultural Finance, Community/Rural/Urban Development, Demand and Price Analysis, Farm Management, Financial Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Institutional and Behavioral Economics, International Relations/Trade, Labor and Human Capital, Land Economics/Use, Marketing, Production Economics, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies,

Trends and Patterns in Fertilizer Use by Smallholder Farmers in Kenya, 1997-2007

This study uses nationwide household panel survey data from 1996/97 to 2006/07 to examine trends in fertilizer use on maize by smallholder maize growers. The paper also compares these findings with fertilizer use rates according to other recent surveys in Kenya to assess comparability. We also examine the correlation between household fertilizer use and indicators of welfare such as wealth and landholding size. In addition, we use econometric techniques applied to household survey data to identify the main household and community characteristics associated with fertilizer purchases. Lastly, the study considers alternative policy strategies for maintaining smallholders’ access to fertilizer in the current context of substantially higher world fertilizer prices.Fertilizer, Africa, Malawi, Kenya, Small Holders, Crop Production/Industries, Q13,

Environmental Change and Maize Innovation in Kenya: Exploring pathways in and out of maize

This paper summarises findings of the STEPS Environmental Change and Maize Innovation in Kenya project. Maize is an important staple crop in Kenya, socially, politically and economically. This project has taken maize as a window through which to explore differential responses to the combined and inter-related effects of climate change, market uncertainties and land use changes over time. It has traced innovations and responses of various actors – public agricultural research institutions, donors, development agencies, private companies and farmers. At issue is the way in which actors in different institutional, geographic and social locations understand and frame resilience – and how these framing assumptions shape agendas and steer solutions and resources in certain directions and not others.ESR

Expanding the Agricultural Finance Frontier: A Kenyan Case

Agriculture is the mainstay of the Kenyan Economy. However, agriculture has experienced low productivity over the years. Poor access to agricultural finance has been identified as a contributing factor to low crop productivity. Kenyan agriculture has undergone some fundamental changes which have profoundly affected agricultural financial services. In addition, most financiers shy away from lending to the agricultural sector because of the covariant risks related to rain-fed agriculture. Given this background, we undertake a comparative analysis of emerging models of agricultural finance that have expanded the agricultural finance frontier to the smallholder farmers. Key findings indicate that demand for farming credit takes the highest proportion of the credit needs among the rural households, thus accentuating the importance of agricultural finance. The state run model of agricultural financing has the lowest financial sustainability. On the contrary, the community financing models are the most likely drivers of change in the rural finance landscape