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- W224072650 abstract "In the agricultural sector of many developing countries, weather risk is pervasive and remains one of the major constraints limiting farmers from accessing loans necessary to expand their production and improve productivity. Agricultural lenders particularly worry about high rates of default in the event of drought. Out of millions of smallholder farm households in Malawi, only 50,000 currently access credit from formal financial institutions for the purchase of agricultural inputs. Other smallholder's access loans provided through informal credit and savings associations, but this group is also a small percentage of the sector. Malawis commercial banks had traditionally focused on lending to larger commercial farms, yet also maintained a portfolio of loans for smallholder farmers. In 2004-05, the country experienced a devastating drought leading some 40 percent of the smallholder population to rely on food aid distributions that year. In 2005-06, most of the country received favorable rainfall, but farmers in a few major production zones experienced shortages of rainfall and reduced harvests. In 2006-07, Malawi obtained a record maize harvest, in part due to favorable rain in much of the country. However, even in the same year, pockets of drought affected a number of areas and others were affected by flooding. In effect, rainfall risk is endemic, and must be factored into the costs of doing business, including the costs of providing agricultural credit. The World Bank and country team in Malawi have been working with local stakeholders to transition pilot programs into sustainable private sector driven businesses." @default.
- W224072650 created "2016-06-24" @default.
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- W224072650 date "2009-01-01" @default.
- W224072650 modified "2023-09-27" @default.
- W224072650 title "Micro- and meso-level weather risk management : deficit rainfall in Malawi" @default.
- W224072650 hasPublicationYear "2009" @default.
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