The UN (United Nations) Food and Agriculture Organization (FAO) is implementing nine projects worth almost USD 18 million in Niger to support farmers experiencing prolonged drought in West Africa. The projects focus on the purchase and distribution of animal feed and agriculture supplies, and an estimated 2.8 million people will be served. Additionally, FAO continues to provide longer-term support to farmers under the European Union Food Facility (EUFF), the European Union’s aid program for world hunger, in the form of a “warrantage” financing scheme, or inventory credit financing system, in Niger, Burkina Faso, Mali and Senegal. This system allows groups of farmers to access credit from rural microfinance banks using part of their agricultural production as guarantee. The warrantage scheme was first implemented in Niger in 1999. A successful warrantage program relies on a functioning farmers’ association, banking legislation which allows produce as a guarantee for credit, an interested local financial institution, a storage place for produce and collateral which is non-perishable and whose price has a proven record of rising after harvest.
By Jennifer Shevock, Research Associate
About United Nations Food and Agriculture Organization:
The United Nations Food and Agriculture Organization is an autonomous agency within the United Nations system. It is dedicated to raising levels of nutrition and standards of living and improving agricultural conditions.
Sources and Additional Resources:
“UN supports farming projects to alleviate grave food crisis in Niger” June 21, 2010. http://www.un.org/apps/news/story.asp?NewsID=35080&Cr=+Niger+&Cr1=http://www.busrep.co.za/index.php?fSectionId=563&fArticleId=4044930
“Warrantage scheme boosts Niger farm incomes/Credit-based system improves livelihoods” April 12, 2010. http://appablog.wordpress.com/2010/04/12/warrantage-scheme-boosts-niger-farm-incomes-credit-based-system-improves-livelihoods/
“UN agency expands credit farming scheme in West Africa” April 12, 2010.
http://www.un.org/apps/news/story.asp?NewsID=34330&Cr=+niger+&Cr1=
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