Offering Postharvest Credit to Improve Farmer Welfare

Last registered on November 10, 2021

Pre-Trial

Trial Information

General Information

Title
Offering Postharvest Credit to Improve Farmer Welfare
RCT ID
AEARCTR-0008022
Initial registration date
November 09, 2021
Last updated
November 10, 2021, 11:05 AM EST

Locations

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Primary Investigator

Affiliation
University of California, Berkeley

Other Primary Investigator(s)

PI Affiliation
UC Berkeley

Additional Trial Information

Status
In development
Start date
2021-11-15
End date
2024-12-31
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
We study the effects of providing postharvest loan to farmers in Gombe State, Nigeria. While previous studies have shown high rates of returns to postharvest credit in East Africa, they fail to detect impacts on consumption, investment or borrowing (Burke et al 2019; Channa et al 2018). We partner with a local NGO providing postharvest credit to randomly assign postharvest loans to groups of applicants. We employ high-frequency data collection and conduct a series of choice experiments to measure the program's effects on consumption and intertemporal marginal rates of substitution throughout the year. We also plan to randomize the interest rate at which loans are offered to measure how this affects farmer welfare and overall cost effectiveness of the program.
External Link(s)

Registration Citation

Citation
Ligon, Ethan and Ethan Ligon. 2021. "Offering Postharvest Credit to Improve Farmer Welfare." AEA RCT Registry. November 10. https://doi.org/10.1257/rct.8022-1.0
Experimental Details

Interventions

Intervention(s)
We study the effects of providing postharvest loan to farmers in Gombe State, Nigeria. While previous studies have shown high rates of returns to postharvest credit in East Africa, they fail to detect impacts on consumption, investment or borrowing (Burke et al 2019; Channa et al 2018). We partner with a local NGO providing postharvest credit to randomly assign postharvest loans to groups of applicants. We employ high-frequency data collection and conduct a series of choice experiments to measure the program's effects on consumption and intertemporal marginal rates of substitution throughout the year.
Intervention Start Date
2021-11-15
Intervention End Date
2024-11-15

Primary Outcomes

Primary Outcomes (end points)
Amounts of grain stored, revenues from grain sales, seasonal consumption profiles, (estimated) intertemporal marginal rates of substitution
Primary Outcomes (explanation)
The IMRS will be estimated from a series of choice experiments eliciting preferences over purchasing an artificial "bond" at different prices, as well as from estimating a demand system from consumption data following Ligon (2021).

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We will randomize loan offers to groups of 5 farmers that apply for loans from our study partner. Among groups offered loans, half will be offered cash loans and half will be offered loans in-kind of an equivalent value of maize (about 200 USD). In subsequent years, we will additional elicit interest rates at which a group is willing to borrow and then randomly implement one of those choices.
Experimental Design Details
Not available
Randomization Method
Randomization done in office by a computer.
Randomization Unit
Farmer groups of five members
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
200 farmer groups in year 1. 500 farmer groups in years 2-3.
Sample size: planned number of observations
1,000 observations in year 1. 2500 observations in years 2-3.
Sample size (or number of clusters) by treatment arms
66 farmer groups (330 farmers) in each of cash loan, maize loan and control in year 1. 165 each in years 2 and 3.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
UC Berkeley IRB
IRB Approval Date
2021-11-09
IRB Approval Number
00006252