Microfinance Practice: [MFP] Returns to small farm investments

Greetings Prof. Harper!

I just read an article that has bits and pieces of the data you are looking for re: small farm debt in Cambodia. Maybe you'll be able to track down the related data from the journalist, or the quoted govt. official:

http://www.phnompenhpost.com/index.php/2012011153889/Business/debt-fears-for-farmers-calls-for-lower-microfinance-rates.html

Please let us know what you determine on this topic in general.

I too am on a fishing expedition. My hypothesis is that micro lending based solely on trust is a disappearing breed; that perhaps commercialization has led to the reliance on collateralized lending in the form of forced savings, a blocked portion of the loan, promissory notes or moveable goods (like household items) are now a prerequisite in most countries to get a loan.

Could I ask the group to kindly provide input on this; and I would be particularly interested to know names of MFIs lending solely based on social capital and/or the group joint and several liability mechanism?

Then, last question; does anyone have data on MFI types and volumes of disputes and/or use of the formal court system for debt collection?

Thanks very much! Have a fantastic New Year everyone.

Best,

Jami Hubbard Solli

On Fri, Jan 13, 2012 at 12:42 AM, Malcolm Harper <malcolm.harper@btinternet.com> wrote:

Dear Colleagues,

May I please ask for some data, or suggestions as to where I might get it ?

I need some examples of the returns from typical small farm projects. Buying a cow, growing a new crop or variety, digging a well, buying a irrigation pump, using more or better fertiliser, whatever.

Rough figures, for the amount invested, and the returns, net of costs, including family labour which can be valued at what the same person would earn for the same hours as a day labourer at that season.

Really small farms, the average in India is under two acres, and really small incremental investments on such farms, not the farm itself, as above. And the cost of land can be ignored unless it is leased for the purpose, or unless there is an obvious opportunity cost, such as leasing it to a neighbour.

I have lots of examples for non-farm enterprises. Buy $50 worth of bananas, sell them for $70 in two days, cost two days work at $5 a day opportunity cost, $1 bus fare, $2 bribe to the market police, $2 storage fee overnight, net return $10.

But I want some for farmers, typical microfinance investments.

The more the merrier, all I need is the nature of the 'project', the country where it is done, and the investment amount , income, costs, return and period. Any currency.

Many thanks

Malcolm Harper