It is important to note that subsidized credit, or generally credit to farming development, is generally not sufficient when it comes alone, when it is by itself. The case of Malawi shows us that the credit to farmers came with the supply of the appropriate inputs, repayable at the time that payments for the sold yield are coming to farmers, and the government offered the necessary marketing channels, and by so doing, the government closed the essential triangle of production at the benefits of the farmers. Things which were not obvious in the past, and which were not done in the past
A couple of years ago I looked into the literature on fertilizer subsidies in Malawi. There was a lot of work done by serious institutions including the WB, FAO, IFPRI, and Mich. State University. Lots of things to evaluate. Then it seemed that the subsidy system was far from sustainable. It may be better today. Dick
From: MicrofinancePractice@
yahoogroups.com [mailto:MicrofinancePractice@yahoogroups.com ] On Behalf Of coopgalor
Sent: Friday, January 13, 2012 4:37 PM
To: MicrofinancePractice@yahoogroups.com
Subject: Re: [MFP] Returns to small farm investments
For years, the world bank and other experts were against subsidies in rural finance.For the last five years the government of Malawi applies a policy of subsidies for the Maize cultivation and Malawi became an exporter of Maize.
Some information about:
HTH
Zvi
❀
On 13 Jan 2012, at 22:31, Meyer, Richard wrote:
Malcolm: If you search for "Subsidies as an Instrument in Agricultural Finance: A Review" available from WB, IFAD or FAO you will see my effort in Chapter 7 to shed some light on the rate of return issue. It may help a bit but not with the detail you would like. Write me at meyer.19@osu.edu if you have trouble accessing it. Dick
From: MicrofinancePractice@
yahoogroups.com [mailto:MicrofinancePractice@yahoogroups.com ] On Behalf Of Malcolm Harper
Sent: Thursday, January 12, 2012 6:42 PM
To: MicrofinancePractice@yahoogroups.com
Subject: [MFP] Returns to small farm investments
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
No comments:
Post a Comment