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GLM|LIC Policy Brief No. 3

The Impact of Seasonal Food and Cash Loans on Small-scale Farmers in Zambia

Food Constraints and “Ganyu” Labour

Small-scale farming remains the primary source of income for a majority of the population in developing countries. In rainfed agricultural settings, income typically arrives only once a year. To meet consumption and investment needs over the subsequent months in the absence of formal financial markets, households adopt a range of coping strategies. Two common strategies are reducing food consumption and selling labor to other farms, both of which improve short term liquidity, but may harm subsequent harvest outcomes. To investigate whether seasonal coping strategies lower farm output, we conducted a randomized controlled trial.

GLM|LIC Policy Brief No. 3

The Impact of Seasonal Food and Cash Loans on Small-scale Farmers in Zambia

  • Günther Fink
  • Kelsey Jack
  • Felix Masiye
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Established in 1998 in Bonn, Germany, IZA is an independent, non-profit research institution supported by the Deutsche Post Foundation with a focus on the analysis of global labour markets. It operates an international network of about 1,500 economists and researchers spanning across more than 50 countries.

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