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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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Main Authors: Timu, Anne G., Shee, Apurba, Yilma, Marta, Bellisa, Temesgen, Kebede, Temesgen, You, Liangzhi
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2023
Subjects:
income
agricultural technology
investment
households
employment
welfare
capacity development
agricultural credit
smallholders
markets
developing countries
food security
shocks
credit
resilience
Online Access:https://hdl.handle.net/10568/140175
Summary: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.

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