Smallholder farmers are among the most financially excluded of all client segments. Understanding their particular needs is an important step in helping financial service providers to develop appropriate and effective products that serve them effectively.
Although Gideon, a participant in CGAP's financial diaries of smallholder families research, is technically a rice farmer, much of his income is comprised of income from other crops and and non-agricultural activities.
A new Focus Note provides early insights into the Smallholder Households Financial Diaries project and highlights how smallholders weave together agricultural and nonagricultural sources of income to meet their needs.
As a smallholder, geography not only determines the climate of your village and the farm-readiness of your land, but also plays a role in determining how well-connected you are to irrigation, inputs like seeds and fertilizer, buyers, markets, and training.
National surveys in Mozambique and Tanzania show that women in agriculture do not diversify their incomes as much as men do. Equal access to financial services could help women to generate new sources of income.
Cellulant developed a mobile wallet network in Nigeria that extends to some eight million farmers. With more than 40 million transactions in just two years, smallholder farmers in Nigeria are poised to adopt digital financial services more broadly.
On paper, digital financial services can sound like a silver bullet to reach millions of rural, underserved smallholder farmers. In reality, the challenges can be greater than the deployment of a low-tech solution.
How are smallholder families managing their money? What challenges do they face? What financial solutions can help? CGAP’s Financial Diaries with Smallholder Households ("Smallholder Diaries”) spent a year with 270 farming families in Mozambique, Tanzania, and Pakistan to find out.