Agricultural credit and the well-being of cotton growers in northern Cameroon

Abstract

This work analyzes the contribution of agricultural credit granted by Sodecoton on the performance and well-being of cotton producers in Pitoa. The study, involving 120 producers, assesses how this credit influences their well-being, the adoption of innovative practices and agricultural productivity. Results show that agricultural credit has a positive effect on income growth, with producers having an average monthly income of 48,485 CFA francs, higher than the SMIG (43,969 CFA francs), and an average yield of 1.5 t/ha. Access to credit and training encourages the adoption of new farming practices, while low levels of education have a negative influence. Farmers have a low level of food insecurity (FIES score of 1.95 < 3), and education and health are highly dependent on cotton income, confirming the effectiveness of credit. However, challenges remain, notably the management of repayment defaults and the difficulties encountered by some producers. The study recommends strengthening credit management mechanisms, improving training for producers and implementing strategies to overcome these, as well as increasing purchase prices among producers, in order to optimize the impact of agricultural credit on rural development and the fight against poverty in Cameroon.