Crop price indemnified loans for farmers: A pilot experiment in rural Ghana
Farmers face a particular set of risks that complicate the decision to borrow. We use a randomized experiment to investigate (1) the role of crop-price risk in reducing demand for credit among famers and (2) how risk mitigation changes farmers' investment decisions. In rural Ghana, we offer farmers...
| Autores principales: | , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2010
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/154232 |
| _version_ | 1855531864973901824 |
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| author | Karlan, Dean Kutsoati, Ed McMillan, Margaret S. Udry, Christopher R. |
| author_browse | Karlan, Dean Kutsoati, Ed McMillan, Margaret S. Udry, Christopher R. |
| author_facet | Karlan, Dean Kutsoati, Ed McMillan, Margaret S. Udry, Christopher R. |
| author_sort | Karlan, Dean |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Farmers face a particular set of risks that complicate the decision to borrow. We use a randomized experiment to investigate (1) the role of crop-price risk in reducing demand for credit among famers and (2) how risk mitigation changes farmers' investment decisions. In rural Ghana, we offer farmers loans with an indemnity component that forgives 50 percent of the loan if crop prices drop below a threshold price. A control group is offered a standard loan product at the same interest rate. We find similar rates of loan uptake among all farmers and little significant impact of the indemnity component on uptake or other outcomes of interest, with the exception of higher likelihoods of garden egg cultivation and sales to market traders rather than at farmgate among recipients of indemnified loans. |
| format | Artículo preliminar |
| id | CGSpace154232 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2010 |
| publishDateRange | 2010 |
| publishDateSort | 2010 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1542322025-11-06T06:53:43Z Crop price indemnified loans for farmers: A pilot experiment in rural Ghana Karlan, Dean Kutsoati, Ed McMillan, Margaret S. Udry, Christopher R. agricultural credit randomized control trials crop insurance agricultural prices impact assessment Farmers face a particular set of risks that complicate the decision to borrow. We use a randomized experiment to investigate (1) the role of crop-price risk in reducing demand for credit among famers and (2) how risk mitigation changes farmers' investment decisions. In rural Ghana, we offer farmers loans with an indemnity component that forgives 50 percent of the loan if crop prices drop below a threshold price. A control group is offered a standard loan product at the same interest rate. We find similar rates of loan uptake among all farmers and little significant impact of the indemnity component on uptake or other outcomes of interest, with the exception of higher likelihoods of garden egg cultivation and sales to market traders rather than at farmgate among recipients of indemnified loans. 2010 2024-10-01T14:00:21Z 2024-10-01T14:00:21Z Working Paper https://hdl.handle.net/10568/154232 en Open Access application/pdf International Food Policy Research Institute Karlan, Dean; Kutsoati, Ed; McMillan, Margaret S.; Udry, Christopher R. 2010. Crop price indemnified loans for farmers: A pilot experiment in rural Ghana. IFPRI Discussion Paper 1021. https://hdl.handle.net/10568/154232 |
| spellingShingle | agricultural credit randomized control trials crop insurance agricultural prices impact assessment Karlan, Dean Kutsoati, Ed McMillan, Margaret S. Udry, Christopher R. Crop price indemnified loans for farmers: A pilot experiment in rural Ghana |
| title | Crop price indemnified loans for farmers: A pilot experiment in rural Ghana |
| title_full | Crop price indemnified loans for farmers: A pilot experiment in rural Ghana |
| title_fullStr | Crop price indemnified loans for farmers: A pilot experiment in rural Ghana |
| title_full_unstemmed | Crop price indemnified loans for farmers: A pilot experiment in rural Ghana |
| title_short | Crop price indemnified loans for farmers: A pilot experiment in rural Ghana |
| title_sort | crop price indemnified loans for farmers a pilot experiment in rural ghana |
| topic | agricultural credit randomized control trials crop insurance agricultural prices impact assessment |
| url | https://hdl.handle.net/10568/154232 |
| work_keys_str_mv | AT karlandean croppriceindemnifiedloansforfarmersapilotexperimentinruralghana AT kutsoatied croppriceindemnifiedloansforfarmersapilotexperimentinruralghana AT mcmillanmargarets croppriceindemnifiedloansforfarmersapilotexperimentinruralghana AT udrychristopherr croppriceindemnifiedloansforfarmersapilotexperimentinruralghana |