Agricultural and Biological Research

Financing and agricultural equipment services for seed production cooperatives in Benin (West Africa)

Fifanou G Vodouhe, Gerard C Zoundji*, Ayide A Armel Dossou and Kamilou Seibou Ouake

Seeds are an important factor of production and play an essential role in food security. This study examines the feasibility of providing agricultural equipment services to seed farmers in the municipalities of Savè and N'Dali in Benin. Using purposive sampling, 140 actors involved in the seed value chain were selected in the two municipalities. Data were collected using from focus group discussions and a structured questionnaire. We performed descriptive statistics and regression model to analyze seeds farmers’ willingness to pay for machinery services. The study found that microcredit institutions are the primary source of financing for seed production for the majority of respondents (86%). However, seed credit needs are still largely unmet, and the use of modern farm equipment remains low. There is a strong demand for agricultural equipment services, such as mechanized plowing, threshing/shelling, sorting by size and seed cleaning, and transport services, all of which can be provided profitably. Seed farmers are the target for the provision of agricultural equipment services for soil preparation, plowing of seedlings, harvesting, threshing/shelling, storage, transport etc. in the two municipalities. However, willingness to pay for a machinery service depends on the number of agricultural workers, secondary economic activities, the years of farming experience, age, household size and gender. These results suggest that there is scope for developing the supply side of agricultural equipment service for efficient and sustainable agricultural production.