Scaling Agricultural Inputs in Mali

This project will scale the Village Input Fair (VIF) model which integrates market organization principles of timing, liquidity, supply chain reliability, and interlinked transactions. VIFs are organized in the post-harvest period, in February or March. Ag-dealers participate in fairs to collect purchase orders from farmers for agricultural inputs, accompanied by a 10% deposit commitment, with the balance paid upon delivery. Microfinance loan officers, also present at the fair, play two roles. First, they collect farmers' deposits, hold them in blocked accounts, and release payment upon delivery of inputs. Second, they offer farmers the opportunity to apply for credit, with their loan formalized upon delivery of the inputs. Input delivery occurs in June, before the start of the rainy season. The selection of ag-dealers who will have the opportunity to sell their products at the fair will be selected through an auction-based licensing system. A market-making enterprise will be selected through a business competition. The enterprise coordinates amongst ag-dealers to organize the auction for licenses to participate in the fair and organizes the village input fair.

2023-02-20

2024-06-28

The experiment focuses on outcomes at three levels: household level, ag-dealer level, and market level. The main treatment effects are at the household level, but information at the dealer and market levels is important to understand scalability.

At the household and plot level we measure (a) farmers’ demand measured by participation during village input fairs and sales volume for inputs, (b) the extensive and intensive margin of farmers’ fertilizer usage during two subsequent agricultural seasons, and (c) farmers’ crop choices and agricultural yields. Input decisions and production will be measured at the plot level.

At the market level we measure transactions at the input fairs, including buyers, sellers, products demanded, prices, and quantities. At the ag-dealer level we collect information on profits, costs, sales, revenues, employment, and the input supply chain.

Welfare effects including potential income gains, food security, and poverty reduction.

We select and randomize 150 villages into two market cohorts. In Year 1 of the experiment 75 village clusters will be assigned to treatment and 75 villages to control. In year 2, the 75 control villages from year 1 will also receive the treatment. In each treatment villages all households will have the opportunity to participate and buy agricultural inputs at the fair. Data for household and plot level outcomes will be collected through a household survey in 15 households in each village.

Update: The study has expanded to include a third market cohort where 40 additional villages will be selected to participate. Of the 40 villages, 25 villages will be assigned to treatment and 15 to control.

Not available

Randomization done in office on a computer using Stata.

The treatment is randomized at the village level. The villages are stratified and divided according to observable characteristics such as population and distance to the paved roadway.

Yes

150 village clusters

Update: Additional 40 village clusters from a new region were added to the study

2250 households and 300 agro-dealers Update: The new region added to the study will survey 600 households (15 households per village)

In year 1 of the experiment 75 village clusters will be assigned to treatment and 75 villages to control. In year 2, the 75 control villages from year 1 will also receive the treatment. In treatment villages all households will have the opportunity to participate and buy agricultural inputs at the fair.

Update: Additional 25 village clusters from the new region will be assigned to treatment.