Credit constraint, unmet fertilizer needs and crop losses: evidence from three selected SSA countries
摘要
Climate- and pest-related crop losses are a formidable challenge for farmers in the sub-Saharan African (SSA) region and pose a major threat to the achievement of the Sustainable Development Goals (SDGs), especially Goals 1 and 2. This study examines the effect of credit constraint on climate- and pest-related crop losses among farmers in SSA. The analysis employs cross-sectional data from three SSA countries, namely Kenya, Nigeria, and Tanzania, drawn from the fifth wave of the Financial Inclusion Insights (FII) survey which was collected in 2017. A probit regression was used to establish the baseline model, while an IV-probit regression was employed to obtain unbiased estimates. The results show that farmers facing credit constraint are more likely to experience climate- and pest-related crop losses. This adverse effect is even stronger for smallholder farmers, farmers in rural areas, and those living below the poverty line. Further analysis indicates that unmet fertiliser needs constitute one of the channels through which credit constraint increases climate- and pest-related crop losses. We therefore recommend that policymakers prioritise measures aimed at alleviating credit constraint among farmers. Additionally, improving access to fertiliser and other critical inputs is essential to reduce vulnerability to climate and pest shocks.