The Food and Agriculture Organization will introduce its credit-based farming project to Mali, Senegal and Burkina Faso, following the project’s success in Niger. This project seeks to address food security issues in poor countries by providing storage-based credit systems to farmers. It is a successful alternative to growing more food to address food shortage as shown by its success in Niger, Ake Olofsson, a rural finance expert with FAO, said in a news release.
Under the credit-based scheme, farmers use their harvest as collateral for bank loans instead of selling crops immediately. The crops are then typically sold when prices are high.
