Providing collateral and improving product market access for smallholder farmers: a randomised evaluation of inventory credit in Sierra Leone
3ie Impact Evaluation Report 14, 2014
Inventory credit can be an important instrument in helping farmers benefit from large inter-seasonal volatility of agricultural prices. This study by Lorenzo Casaburi, Rachel Glennerster, Tavneet Suri and Sullay Kamara presents results from the evaluation of a storage support and inventory credit scheme provided to palm oil farmers in Sierra Leone. The take-up rate was 29.9 per cent for storage support and 24.9 per cent for inventory credit. The programme did not have a significant impact on overall storage behaviour or on the patterns of oil sales across seasons. The storage within the scheme primarily substituted for other forms of storage thus providing limited benefits to the participating communities.