Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 443

Full Length Research Paper

Use of a warrantage system to face rural poverty and hunger in the semi-arid area of Burkina Faso

Badiori Ouattara
  • Badiori Ouattara
  • Institut de l’Environnement et de Recherches Agricoles (INERA), Burkina Faso.
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Sibiri Jean Baptiste Taonda
  • Sibiri Jean Baptiste Taonda
  • Institut de l’Environnement et de Recherches Agricoles (INERA), Burkina Faso.
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Arahama Traore
  • Arahama Traore
  • Institut de l’Environnement et de Recherches Agricoles (INERA), Burkina Faso.
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Idriss Serme
  • Idriss Serme
  • Institut de l’Environnement et de Recherches Agricoles (INERA), Burkina Faso.
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François Lompo
  • François Lompo
  • Institut de l’Environnement et de Recherches Agricoles (INERA), Burkina Faso.
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Derek Peak
  • Derek Peak
  • Department of Soil Science, University of Saskatchewan (UofS), Canada.
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Michel P. Sedogo
  • Michel P. Sedogo
  • Institut de l’Environnement et de Recherches Agricoles (INERA), Burkina Faso.
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Andre Bationo
  • Andre Bationo
  • Department of Soil Science, International Fertilizer Development Centre (IFDC), 70, Rue ESBTAO Hountigomé - BP 4483 Lomé - Togo Lomé, Togo.
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  •  Received: 09 April 2017
  •  Accepted: 01 August 2017
  •  Published: 28 February 2018

Abstract

It is widely believed that limited access of small scale farmers to agricultural credit is one of the key causes of rural poverty and a major constraint to adoption of innovations in Sub-Saharan Africa. Since the early 1960s, many strategies to access agricultural credits have been implemented with success. This study assessed the effects of warrantage, a community-based micro credit system, on poor small resource farmers’ income and livelihoods of the semi-arid area of Burkina Faso. Two broad socio economic surveys were conducted among 1040 farmers and 440 household heads. Data were collected from 58 inventory credit warehouses and 36 input shops established in the study areas. The results showed that the warrantage system is dominated by women farmers (who produce 60% of the stored harvests) and appears as the main source of agricultural credit.  The profit (up to 140%) provided allows farmers to purchase external inputs such as inorganic fertilizers. This resulted in higher crop productivity and a substantial increase of farmers’ income which in turn improve farmers’ livelihood.
 
Key words: Inventory credit system, mineral fertilizer, staple crop production, small farmers.