Rainfed farmers survive on a diversity of crops, animals, natural resources and livelihoods, mainly as a measure of managing risk.

Narrowly focused credit and other services that are oriented towards single crops or single animal types increase the perception of risk and make banks reluctant to invest in rainfed areas. Appropriate institutional systems designed for rainfed regions need to be evolved.

Public policy will have to address the need for credit for multiple livelihood portfolios of a farmer, cyclical credit that allows repayment over time, self-reliant farmers’ institutions, substantial inflow of credit, and accessible markets suitable for low volumes of multiple commodities.

Invest in

  • Innovative credit instruments for farm-systems, cyclical credit that includes farm-internal inputs

  • A mix of institutions with a focus on natural resources development and management

  • Commodity production (services) and marketing