Smallholder Farmers Spend Credit Primarily on Food: Gender Differences and Food Security Implications in a Changing Climate

Abstract

In many low-income nations agriculture is used as the primary source of income, which in the face of a changing climate, is known to be at considerable risk for the smallholder farmers that rely on it. Financial resources may enable smallholder farmers to implement adaptation practices and diversify income and investments, which has the potential to affect household income and food security. Here we explore relationships between access to different types of financial resources among male and female-headed households and women vs. men, use of financial resources, and its relationship to food security. We use data from the CGIAR Climate Change, Agriculture, and Food Security (CCAFS) program from four sites including Nyando (Western Kenya) and Wote (Eastern Kenya), Rakai (Uganda) and Kaffrine (Senegal), to represent major farming systems and agro-ecological zones across Africa. We find that male and female-headed households do not attempt to borrow financial resources in significantly different quantities; however, female-headed households are less likely to have access to financial resources if they wanted them. We find that men and male-headed households are more likely to access formal loans. As well, we find that male and female-headed households spend their financial resources differently with female-headed households most likely to use their credit for food, medical expenses and education and male-headed households most likely to use it on food, agriculture/ livestock inputs and education. Formals loans were more frequently associated with credit spent on agriculture/livestock inputs while informal loans were more likely to be utilized for buying food and medical care. In the context of food security we find that all households and sexes that attempted to borrow money in the past 12 months were less likely to borrow food or other goods, but that female-headed households were more than twice as likely to borrow food or other goods overall. These results add nuance to the relationship of financial resources to food security, suggesting that for many smallholders, especially women, credit is often used to obtain food and other health outcomes as compared to on-farm investment. The use of financial resources for these varying purposes likely has different short-term vs. long-term returns and tradeoffs, which could influence smallholder farmer capacity for climate change adaptation.

Climate Change and Women's Health: A Scoping Review

“…Twenty‐two articles explored the risk factors to vulnerability in relation to women's health and climate change (Alhassan et al., 2019 ; Balehey et al., 2018 ; Beaumier & Ford, 2010 ; Bunce et al., 2016 ; Carranza & Niles, 2019 ; Denton, 2002 ; Khapung, 2016 ; Koehler, 2016 ; Larson et al., 2018 ; Leipert & Reutter, 2005 ; MacVicar et al., 2017 ; Marí‐Dell'Olmo et al., 2019 ; Mason & Agan, 2015 ; Masson et al., 2019 ; Mazorra et al., 2020 ; Ortega‐Egea et al., 2014 ; Poudel et al., 2020 ; Roy & Venema, 2002 ; Seidel & Bell 2014 ; Shanthi et al., 2017 ; Shodieva et al., 2014 ; Singh et al., 2018 ). Climate change exacerbated existing gender and social inequalities faced by women, especially in rural and remote communities (Alhassan et al., 2019 ; Balehey et al., 2018 ; Beaumier & Ford, 2010 ; Bunce et al., 2016 ; Khapung, 2016 ).…”

“…They were identified as often being the last members to eat in the household, allowing the males in the family and the children to eat first (Bunce et al., 2016 ; Leipert & Reutter, 2005 ; Masson et al., 2019 ; Ortega‐Egea et al., 2014 ). The studies overall reported that women in general had very limited rights in owning land, wealth and were often excluded from inheritance (Balehey et al., 2018 ; Beaumier & Ford, 2010 ; Carranza & Niles, 2019 ; Denton, 2002 ; Koehler, 2016 ; Leipert & Reutter, 2005 ; MacVicar et al., 2017 ; Mason & Agan, 2015 ; Masson et al., 2019 ; Roy & Venema, 2002 ; Shanthi et al., 2017 ; Shodieva et al., 2014 ; Singh et al., 2018 ). Women's health and their role as caregivers are significantly affected by their lack of human rights, exclusion from decision making in society, and financial dependence on males who earn income in their households (Masson et al., 2019 ; Ortega‐Egea et al., 2014 ; Poudel et al., 2020 ; Roy & Venema, 2002 ; Singh et al., 2018 ).…”

“…They were identified as often being the last members to eat in the household, allowing the males in the family and the children to eat first (Leipert 2005, Ortega-Egea 2014, Bunce 2016, Masson 2019. The studies overall reported that women in general had very limited rights in owning land, wealth and were often excluded from inheritance (Denton 2002, Roy 2002, Leipert 2005, Beaumier 2010, Shodieva 2014, Mason 2015, Koehler 2016, MacVicar, Berrang-Ford et al 2017, Shanthi 2017, Balehey 2018, Singh 2018, Carranza 2019, Masson 2019). Women's health and their role as caregivers are significantly affected by their lack of human rights, exclusion from decision making in society, and financial dependence on males who earn income in their households (Roy 2002, Ortega-Egea 2014, Singh 2018, Masson 2019, Poudel 2020.…”

Understanding the drivers of food security among agriculture-based households in Gurué District, Central Mozambique

“…Thus, using HFCS may result in the highest food insecurity levels for household relying on farm-sourced food items. Although, in general, female-headed households are often behind male-headed households with regard to FS status [ 42 , 45 ], behavioral differences between women and men result in differences with respect to how financial resources are spent in male and female-headed households [ 46 ]. While female decision-makers may choose to invest their financial resources in food expenditures, male decision-makers may spend their financial resources on non-food items.…”

Welfare impacts of rural credit and saving program inKurfa Cheledistrict, eastern Ethiopia: a propensity score matching estimation

“…Achieving sustainable agricultural growth remains to be a key driver of economic development and poverty reduction in many countries and contexts across the globe (Ogundeji et al , 2018). This is in view of the recognition that the sector serves as a primary source of household income (Carranza and Niles, 2019), food and raw materials for industries. Considering the rapidly increasing population and the demand for adequate and safe food to ensure food and nutrition security, the agricultural sector is expected to deliver a lot.…”