Highlights from the Second phase of the Round 2 longitudinal sentinel study are presented in this section. The Sentinel study is an impact assessment conducted in order to measure the effect of the Fund on farmer’s agricultural production, asset accumulation, income, food and nutritional security. Information was collected from households involved in different value chains which were being supported by borrowers of the ZADT Fund. The study results show that the program was successful in improving the welfare and income of farmers.
Improved access to credit
The ZADT Fund improved smallholder farmer’s access to credit, particularly for women. Approximately 52% and 44% of the farmers that obtained ZADT credit mostly in kind through the funded VCAs were females in 2016/17 and 2017/18 season respectively. The national Gender policy advocates for a 50% participation between men and women. Results also showed that farmers have limited access to credit from other sources confirming the importance of the ZADT facility to smallholder farmers.
Improved access to extension
Farmers that participated in programmes financed by the ZADT Fund had better access to extension services. In addition to government extension support services that are provided to all farmers, about 42% and 43% of farmers that participated in the ZADT funded programme in 2016/17 and 2017/18 obtained additional extension support from borrowers respectively. In the ZIMVAC report the proportion of households that received extension visits actually declined from 31% in 2016/17 to 21% in the 2017/2018 season. The trend shows that household visits are becoming less frequent. Availing extension support helps in building capacity among farmers and also improves productivity. This has spill over effects towards household welfare and economic development.
Contribution of ZADT Fund to smallholder farmers’ incomes and market access
The ZADT funded programme was instrumental in creating a stable, viable and guaranteed market for smallholder farmers in the two cropping seasons. ZADT funded value chain actors contributed 58% to total farmers’ crop revenue generated in 2016/17 season. Income obtained through the borrower accounted for a greater proportion of income that was obtained from all crops sales.
Contribution of ZADT Fund to food security and livelihoods
Income obtained by farmers supported by ZADT funded agribusinesses had positive effects on dietary diversity and food consumption. Most of the income generated from crop sales under the ZADT facility in 2016/17 (36%) and 2017/18 (28%) was used to purchase food and subsequently improved dietary diversity. Regression analysis results showed that a unit increase in the initial credit led to a 2.4% and 3.7% increase in household dietary diversity and food consumption score respectively in 2016/17. In 2017/18, credit access increased household dietary diversity and food consumption score by 13% and 10% respectively. Some of the farmers used the income to pay for their children’s education. This had a positive and long-term effect on human capital development. Farmers also reinvested their income into agricultural activities (20%) and (18%) for 2016/17 and 2017/18 seasons respectively. The ability to reinvest ensures sustainability of farm enterprises. These results are in line with Sustainable Development Goal (SDG) 2 of ending hunger, achieve food security and improved nutrition and promote sustainable agriculture.
Sustainability of the established agribusiness links
Despite the fact that some of the facilities had matured at the time of the study, a borrower in the (banana value chain) maintained links with farmers. Tea farmers who were linked to a borrower whose operations were closed re-established their links with the parent company. This demonstrates that farmers have been capacitated to forge their own partnerships, a key indication of sustainability. The duration of relationship with borrower had a positive and significant correlation with crop income for sugarcane and Michigan pea farmers. An additional year of borrower-farmer relationship increased income among sugarcane and Michigan pea farmers by 15% and 45% respectively. Therefore, nurturing and promoting long-term relationships between credit providers and farmers is important to enhance household welfare.
Recommendations
The study findings indicated that the ZADT facility had a positive impact on improving agricultural productivity, incomes, livelihoods and food security of smallholder farmers. Given these positive contributions the facility needs to continue availing the credit to farmers.