Study reveals land tenure security shapes agricultural credit impact on Senegalese rice farmers
Research in Senegal shows that the impact of agricultural credit on adopting improved rice varieties depends on farmers' land tenure security. Secure land rights encourage investment and credit use, while insecure tenure limits benefits. The study uses 2021/2022 data from 644 rice-producing households and a double-hurdle model to analyze adoption decisions and intensity.
Brève Publié le (Africa/Lagos, UTC+1)
A recent study in Senegal demonstrates that the effectiveness of agricultural credit in promoting the adoption of improved rice varieties is conditioned by the security of farmers’ land tenure.
Researchers analyzing data from the 2021/2022 Annual Agricultural Survey by Senegal’s Ministry of Agriculture focused on 644 rice-producing households. They found that while credit access is important, its positive effects on adopting certified improved rice varieties occur mainly when farmers hold formal land titles ensuring tenure security.
Land tenure security, which guarantees stable and recognized rights to land use, increases farmers’ confidence to invest in long-term agricultural innovations. Conversely, insecure land rights—often due to customary land regimes—discourage such investments, limiting the benefits of credit.
The study employed a double-hurdle model to separately assess the decision to adopt improved varieties and the extent of their use. Results emphasize the need to integrate land reform policies with agricultural financing to enhance rice production in Senegal, where domestic output remains constrained by small farm sizes, limited credit access, and tenure insecurity.