Risk-Contingent Credit (RCC): Assessing smallholders' agricultural credit needs and the feasibility of implementing RCC in Ethiopia

Agricultural credit is an important instrument for improving farm productivity, the welfare of farm households, and their resilience to weather-related shocks. However, small-scale farmers’ access to credit is limited by demand- and supply-side constraints. Risk-contingent credit, which bundles cred...

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Detalles Bibliográficos
Autores principales: Timu, Anne G., Shee, Apurba, Yilma, Marta, Bellisa, Temesgen, Kebede, Temesgen, You, Liangzhi
Formato: Brief
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2023
Materias:
Acceso en línea:https://hdl.handle.net/10568/140175
Descripción
Sumario:Agricultural credit is an important instrument for improving farm productivity, the welfare of farm households, and their resilience to weather-related shocks. However, small-scale farmers’ access to credit is limited by demand- and supply-side constraints. Risk-contingent credit, which bundles credit with insurance against climate risks, is one promising solution. This study, conducted in three woredas in Ethiopia, implemented a game designed to increased farmers’ understanding of the product and finds that farmers recognize the potential of RCC.