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MEDA INNOVATE LEARNING SERIES Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment April 2020
Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography
and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations
Decision Making Decision Making
Acknowledgements Contents
Author: Larissa Schneider (MEDA) List of Acronyms����������������������������������������������������������������������������������������������������������� iv
Editing and Review: Kyla Levin-Russell (MarketShare Associates), Clara Yoon (MEDA)
Introduction������������������������������������������������������������������������������������������������������������������ 1
Photography: Bimala Colavito, Bidhaa Sasa, Clara Yoon, and World Relief
1. Social Norms and Agricultural Decision Making��������������������������������������������������������� 2
Cover Photo: World Relief
2. INNOVATE Case Examples������������������������������������������������������������������������������������������ 4
Design: Queena Li
2.1. Rwanda: Savings and Agricultural Training Models for Rural Women and Families����������������������������������� 4
This work was carried out with the aid of a grant from the International Development Research
Centre, Ottawa, Canada. The views expressed herein do not necessarily represent those of IDRC or its
Board of Governors. 2.2. Bangladesh: Agent Banking Through an Input Supply Network �������������������������������������������������������� 6
About INNOVATE:
2.3. Nepal: Community Managed Access to Finance������������������������������������������������������������������������ 10
INNOVATE – Adoption of Agricultural Innovations through Non-Traditional Financial Services, is a three-
year initiative implemented by MEDA and funded by the International Development Research Centre 2.4. Kenya: Expanding a Women-Centric Business Model for Product Diversification ����������������������������������� 12
(IDRC). MEDA and its partners are assessing the potential of non-traditional finance to enable large
scale adoption of agricultural innovations among women and men smallholder farmers in South Asia, 3. Conclusions & Recommendations���������������������������������������������������������������������������� 14
South America and East Africa. The research and learnings will contribute to developing policy and
programming recommendations.
3.1. Recommendations for Financial Institutions and Implementing Organizations ������������������������������������� 15
Special thanks to INNOVATE partners (Bidhaa Sasa, CARE Bangladesh, iDE, and World Relief) for their
research contributions to this learning paper, as well as to the many farming families, women and men Bibliography���������������������������������������������������������������������������������������������������������������� 16
engaged and participated in this project.
Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • ii Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • iii
Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography
and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations
Decision Making Decision Making
List of Acronyms Introduction
It is well understood in agricultural development relationships, as well as within the context of
5DE Five key domains of empowerment of the WEAI and financial inclusion efforts that rural women the larger community, and are shaped by social
AFL Agriculture for Life face compounded socio-cultural and economic norms, beliefs, attitudes, livelihood constraints,
barriers in accessing training, information, familial obligations and other factors which can
BA Bank Asia Limited
finance, land, and other inputs and assets encourage, or hinder, success in agricultural
FAO Food and Agriculture Organization critical to achieving success in agriculture-related activities. Many existing studies have looked at
FFS Farmer Field Schools enterprises. In many developing countries, the factors that contribute to lower agricultural
women represent 40-50%1 of the agricultural productivity for women, including time
GDIC Green Delta Insurance Company labour force but continue to face barriers at availability, legal rights, security concerns and
IDRC International Development Research Centre the household, community and national levels limited physical capacity,4 but fail to account for
in building resilient livelihoods despite their the social norms that underpin these individual
IFPRI International Food Policy Research Institute
important role in transforming rural economies. and societal barriers.
KU Krishi Utsho
MEDA Mennonite Economic Development Associated The 2019 Rural and Agricultural Finance State
of the Sector report outlines some of the “Affordability is not the only barrier we
NTFS Non-Traditional Financial Services barriers to women’s meaningful engagement
in agriculture and women’s economic
are trying to overcome. How can a lady
SFL Savings for Life
empowerment (WEE).2 These include a weak farmer get hold of a new tarpaulin canvas
VSLA Village savings and loans associations that won’t break in one season? Does she
enabling environment for women, characterized
WEAI Women’s Empowerment in Agriculture Index by underdeveloped rural markets and services, even know Bidhaa Sasa exists?”
as well as limited financial resources and
WEE Women’s Economic Empowerment – Bidhaa Sasa Final Learning Report
opportunities to access markets. These barriers
WR World Relief are present throughout all stages of a woman’s
life cycle, from childhood to elderly years. Through a three-year initiative implemented
by MEDA and funded by the International
It is critical for those working in WEE Development Research Centre (IDRC),
programming to consider the impacts of a the INNOVATE project partnered with 10
constrained enabling environment, as well organizations in South Asia, South America
as socio-cultural barriers such as traditional and East Africa to assess the potential of non-
or harmful social norms, on the differential traditional finance to enable large scale adoption
access women and other underserved of agricultural innovations among women and
populations may have to the important drivers men smallholder farmers. INNOVATE further
of financial inclusion in agriculture – education, explored how decisions are made within
entrepreneurship or employment opportunities, agricultural households around production,
and financial services.3 The decisions that including the adoption and uptake of new
smallholder women and men make within their practices or inputs along with savings, credit and
households are not influenced by productivity insurance products. MEDA worked with each
gains and cost-savings alone. Household- partner to prioritize learnings on the differential
level decisions on agriculture take place within impacts on women and men within a household
the context of intramarital and other familial related to their pilot or case study objectives.
1 World Bank. (2017). “Help Women Farmers ‘Get to Equal’.”
2 For more information on WEE see: Jones, Bramm. (2019). “Women’s Economic Empowerment: Transforming Systems through
Development Practice.” Practical Action.
3 ISF Advisors and the Mastercard Foundation Rural and Agricultural Finance Learning Lab. (2019). “Pathways to Prosperity Deep Dive:
Understanding women’s rural transitions and service needs,” pg. 5.
4 Ng’weno et al. (2018). “Demand-side review of Financial Inclusion for Women in entrepreneurship and smallholder agriculture.” IDRC.
Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • iv Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 1
Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography
and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations
Decision Making Decision Making
1. Social Norms and Agricultural Decision Making To better understand women’s role and WEE
in agriculture, IFPRI developed the Women’s
to which individuals are empowered in five key
domains of empowerment (5DE) in agriculture.
Empowerment in Agriculture Index (WEAI),
“an aggregate index, reported at the country The WEAI tool can support organizations
Social norms refer to the commonly held rules of behaviour which are shared, reinforced and upheld or regional level, based on individual-level data working in WEE programming in agriculture to
by individuals and groups within a society, and are often enforced by social expectations and sanctions. collected by interviewing men and women better understand the unique drivers of decision-
Sanctions refer to positive or negative response or reactions by others in a household or society to within the same households.”6 The WEAI tool making in production and how other resources,
the behaviours of an individual, for example, smiling or laughing, or scolding and aggression. These can assist practitioners in better understanding income, leadership roles and time constraints
sanctions influence the way people ‘think they should behave’ and what others think should be the different dimensions that gendered social can influence and impact the success of
done.5 Social norms are also upheld or challenged by laws and regulations present in the enabling norms play in women’s agricultural decision- increasing livelihoods or farming revenues within
environment. making and within their households. One of smallholder households.
two indices explored by the WEAI is the degree
Women small producers are constrained by a multitude of factors which restrict their ability to learn
about, access and utilize finance for agriculture or agribusiness and entrepreneurship. The Demand-side
review of Financial Inclusion for Women in entrepreneurship and smallholder agriculture (IDRC 2018, TABLE 1. Five Domains of Empowerment in the WEAI7
pg. 12) highlights some of the common issues that affect smallholder women’s economic engagement
and influence their agricultural decision-making:
Domain Indicators
Production • Input in productive decisions
• Different priorities: Women prioritize • Horizontal networks: Women tend to
• Autonomy in production
household responsibilities such as know other women in similar situations
children’s education and housing. Men as themselves; this can be a source of
Resources • Ownership of assets
prioritize business expenses and large resilience in hard times. Men tend to
investments such as land. know other men from a range of social • Purchase, sale or transfer of assets
and economic stations, enhancing their
• Risk-avoidance: Women are much less ability to expand their enterprises. • Access to and decisions on credit
likely to take risks than men. Women’s
ole tends to be that of defending and • Earning closer to home/mobility: Income • Control over use of income
protecting the household from outside Women are less likely to travel far from
Leadership • Group member
shocks. home; most of their transactions and
income-generating activities take place • Speaking in public
• Life interruptions: Women face close to home. Women’s lower rates
interruptions to business or farming of phone ownership also impacts their Time • Workload
enterprises when they give birth and look ability to interact with people farther
after family members. away. • Leisure
• Lower, less consistent incomes: • Role conformity: Women face strong
Women’s incomes are generally lower societal pressure to conform to gender
and less consistent, which provides them norms and may face judgement from
with less capital to invest in business or family members if they do not conform.
farming enterprises.
5 Nisha Singh, Anam Parvez Butt & Claudia Canepa. (2018). “Shifting Social Norms in the Economy for Women’s Economic Empowerment - 6 IFPRI. (2019). “Women’s Empowerment in Agriculture Index (WEAI).”
Insights from A Practitioner Learning Group.” 7 USAID. (2012). “Women’s Empowerment in Agriculture Index,” pg.3.
Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 2 Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 3
Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography
and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations
Decision Making Decision Making
2. INNOVATE Case Examples women.8 Farmer Field Schools (FFS), are another
model used to engage women and men
or AFL only on joint decision-making, suggesting
that the AFL program may encourage women
producers; FFS focus on technical training and to engage their husbands in decisions that they
experiential learning to promote the adoption previously made by themselves or with someone
The domain of empowerment within agricultural 2.1. RWANDA: SAVINGS AND of improved techniques and inputs to increase else. At the close of the study, there was no
decision-making is highlighted in the below significant change in joint decision-making for
cases from the INNOVATE portfolio. Each case AGRICULTURAL TRAINING yields for smallholder farmers.
those individuals in SFL only.
demonstrates alternative business models MODELS FOR RURAL In Rwanda, World Relief (WR), an international
and approaches for reaching women and WOMEN AND FAMILIES organization that primarily works through One of the most striking results related to
underserved smallholders with client-centric a network of churches to access last-mile household prioritization and decision-making
products and services. The cases explore how households with an emphasis on women, was with respect to food security. The majority
women and smallholder families prioritize In many parts of Sub-Saharan Africa, Village
Savings and Loans Associations (VSLAs) and utilizes both the VSLA and FFS models to build of WR client households within the parameters
agricultural and financial decisions in Rwanda; resiliency through trainings and increased life of the study were classified as ‘severely food
the power of agent banking in Bangladesh; the other forms of savings groups are a proven
model to provide many rural, agricultural skills. In partnership with INNOVATE, WR sought insecure,’ meaning that most respondents
accessibility of rural, formal finance through to better understand the impacts of the ‘Savings reported experiencing of hunger on a regular
community-based aggregation hubs in Nepal; and underbanked individuals with access to
information, financial literacy training, and for Life’ (SFL) VSLA program and the ‘Agriculture basis.9 The endline survey found that those in
and women-friendly product outreach in for Life’ (AFL) FFS program on increasing the combined AFL and SFL groups dramatically
Kenya. Each case demonstrates that decision- capital (in the form of loans and dividends,
or ‘share out’ funds). The group feature of investments in agricultural inputs (seeds, decreased their status as food insecure by 40%
making around agricultural production is not fertilizer, etc.) and improving skills. The project over the course of the study, and for those in AFL
motivated solely by increased net revenue; but VSLAs promote increased agency, community
building, leadership and eventual engagement placed an emphasis on understanding the only, it decreased by 15%. For those in SFL only,
rather decisions made by women and men are impacts for poor women farmers on production the decrease was less than 1%. The research
constrained by a complex system of negotiations with formal financial institutions, including
microfinance institutions. VSLAs tend to go and access to more diverse food sources. also found that the diet diversity for children of
within a community and larger enabling farmers who participated in AFL only or in both
environment influenced by socio-cultural beliefs hand-in-hand with agricultural programming,
since they are often promoted among poor Results from WR’s research showed a 75% the AFL and SFL groups increased, likely as a
and behaviours which can influence agricultural increase in crop productivity for individuals result of nutrition education and increased crop
investments and productivity. producer communities, especially among
(80% female, 20% male) enrolled in both the production promoted through AFL.
SFL and AFL programs. After one year of the
intervention, households participating in SFL only These findings demonstrate that increased
or in both AFL and SFL had a higher likelihood training in agriculture can provide more income
of saving in the last month; among households and/or production diversity so that farmers
participating in SFL only, 73% of those involved acquire more nutritious food for the family, and
saved in the last month when compared to the impact is further enhanced when combined
baseline and among households engaged in AFL with savings, indicating that more resources may
and SFL, 79% more saved in the last month. be funneled into production as well as household
Households engaged in SFL only and in both consumption for potentially increased diet
AFL and SFL were also more likely to utilize diversity and nutrition outcomes. Additionally,
funds through VSLA loans; 37% and 30% more these findings demonstrate that women, the
households used loans in the previous month target client segment of the research, may make
when compared to households at baseline. different decisions for themselves and their
children with respect to food consumption when
On decision-making within households between equipped with more knowledge, resources and
husbands and wives, there was a positive agricultural innovations.
correlation between participating in AFL and SFL
8 SEEP Network. (2017). “Understanding the Impact of Savings Groups.”
9 FAO. Nd. “The Food Insecurity Experience Scale,” pg. 4.
Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 4 Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 5
Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography
and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations
Decision Making Decision Making
2.2. BANGLADESH: AGENT Krishi Utsho (KU), an innovative agro-input Through the project, farmers were offered a BA through their local KU shop agent and then
micro-franchise network and social enterprise small, collateral free, 6-month agriculture-based followed the formal credit application process.
BANKING THROUGH AN operated by CARE Bangladesh, works with loan from Bank Asia (average loan size $200 This tripartite partnership among KU, BA, and
INPUT SUPPLY NETWORK last mile farmers and women who are often USD), with the option to add weather-based GDIC was established to encourage farmers,
excluded from formal market systems. KU insurance offered by GDIC. The customer especially women producers to:
Bangladesh is a rapidly growing economy, aims to increase clients’ farm productivity journey map depicts the different stages
projected to achieve stable 7% national while protecting their productive assets (i.e., and number of days (average 36 working 1. Move into the formal financial sector
growth throughout the next decade owing livestock) through access to affordable and days) for a customer from application to loan through access to bank accounts and
to its investments in health and education good quality inputs and timely financial services disbursement. CARE Bangladesh provided a collateral free loans (financial inclusion);
to boost productivity.10 Despite this trend, such as credit, savings and insurance. With the guarantee deposit to Bank Asia to incentivize the
poverty reduction is occurring at a much slower support of INNOVATE, KU launched a pilot that Bank’s participation in the pilot and enable the 2. Increase autonomy over financial assets
pace: 24% of the population (nearly 1 in 4 incorporated commercial banking, in partnership collateral-free loan offering. KU agents digitally (financial empowerment); and
Bangladeshis) currently lives in poverty, with with Bank Asia Limited (BA), and insurance collected client information using tablets,
close to 13% of the total population living in services provided by Green Delta Insurance introduced the loan and insurance products to 3. Improve knowledge and ability to
extreme poverty.11 Of those in extreme poverty, Company (GDIC) into the existing KU value chain farmers, and discussed the product terms. If make informed financial decisions
women are disproportionately impacted, in two Upazillas (sub-districts) where KU agro- the farmer was interested, s/he was required to (financial literacy).
particularly those engaged in subsistence shops already operated. The goal of the pilot first apply for and open a bank account with
farming, and living in women-headed was to measure the impact of these partnerships
households. Women constitute 50%12 of the on the financial stability and livelihoods of small
agricultural labour force in Bangladesh but are rural farmers, particularly women.
constrained by harmful social norms which often
FIGURE 1. Customer Journey Map from Application to Loan Disbursement
prevent mobility, access to formal credit and
access to agricultural extension services provided
by government, input supply shops and other
service providers.
Watch:
• Insurance Journey Map (1 min)
• Loan Journey Map (1 min)
• Organization Journey Map (1 min)
10 Bloomberg. (2019). “Asian Economies Set to Dominate 7% Growth Club During 2020s.”
11 The World Bank. (2017). “Bangladesh Continues to Reduce Poverty But at Slower Pace.”
12 FAO. (2016). “Women Farmers of Bangladesh.”
Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 6 Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 7
Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography
and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations
Decision Making Decision Making
BA and GDIC benefited from increasing their farmers (28 women) accessed a loan and 50 Participating smallholders received information 4. Traditional Loan Process: The ability to
brand awareness and customer acquisition farmers (10 women) purchased insurance.13 on the available credit and insurance products travel to a traditional brick and mortar
efforts to include previously un/underbanked Trainings and information sessions on the loan and to grow and protect their farming bank is challenging for many rural women
clients, while also developing new employment and insurance products were held at the KU businesses. For women and marginalized in Bangladesh, due to cultural norms
opportunities within their own agent banking shops. The KU team also provided home-based farmers, this pilot encouraged women to around women’s mobility, as well as safety
and insurance networks. training to ensure access for all women, including open their own bank accounts and obtain a concerns in some areas. By shortening the
those unable to attend the KU shop-based flexible and collateral-free loan. The model was processing time and leveraging KU shop
Over the course of the pilot a total of 216 trainings. The pilot was implemented in two ultimately able to effectively overcome some owners to support customers with preparing
farmers (73 women) opened bank accounts, phases, accounting for learning and overcoming of the socio-cultural and economic barriers documents and completing the loan
through 12 agents at different KU shops across challenges, such as shortening the loan approval women face in accessing information and credit application, women and smallholders benefit
Bogura in the northwest region, and Jashore in and disbursement time in phase 2. A breakdown and promote women’s increased agency and from reduced travel costs to branches as well
the southwest region of Bangladesh. Of the 216 of the pilot achievements over the two phases leadership within agricultural market systems. as a decrease in the number of in-person
farmers that opened a new bank account, 83 are shared below: Other key learnings for smallholder engagement interactions.
with the financial sector, with a gender lens
include: 5. Knowledge and Information: Rural
producers have limited knowledge
TABLE 2. Phase 1 and Phase 2 Pilot Achievements 1. Distance: Financial Intuitions (FIs) struggle to of the formal financial sector often
reach rural clients, even within district level due to constraints around literacy,
networks. Agent banking is an alternative telecommunications, and limited reach of
Phase Pilot Achievements Women Men Total model that allows those with limited FIs into rural markets. For women, this is
mobility, especially women, to interact with compounded even further, as training and
Phase 1 New Bank Account 53 109 162 service providers within a trusted community communication sessions are often hosted
setting. by male staff within banking institutions
Initial Loan Application 83 176 259
or input supply shops. Social norms may
2. Risk of Return: FIs focus on large dictate that it is not appropriate for women
Completed Loan Application 28 55 83
farmers rather than smallholders due to to attend male-led trainings. As a response,
Insurance Coverage 10 40 50 the perceived risk of low or no return on KU offered home-based training for women
investment. The KU tripartite partnership who were unable to attend training that
Number of Agents 7 demonstrated the interest and willingness took place in KU shops.
of previously unbanked clients, especially
Phase 2* New Bank Account 20 34 54 women, to engage, adopt and pay back By offering an innovative and accessible
small, accessible, agriculture-based loans. financial package and creating more inclusive
Initial Loan Application 8 10 18 products and services for women’s agricultural
3. Collateral & Gender Bias: Most traditional development, this pilot demonstrated a model
Completed Loan Application 0 0 0 FIs require collateral to provide a loan, which for improving farmers’ (including women) access
*Full results from
excludes many women smallholders as they to finance and ability to make decisions about
phase 2 ongoing Number of Agents 5 have limited ownership of land and hard their livelihoods and production. The partnership
assets like vehicles or farming equipment, also achieved a shift in perceptions within BA,
often based on cultural, gendered social GDIC and the participating KU shop network
norms. The KU pilot demonstrated to BA and demonstrated that women are viable
the trustworthiness of women and men customers of agricultural products.
smallholders to utilize and repay a loan.
13 These results are for Phase 1, as the full results from phase 2 are ongoing as of April 2020.
Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 8 Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 9Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography
and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations
Decision Making Decision Making
2.3. NEPAL: COMMUNITY to protect the farmers from crop failure and realized a three-fold increase in their average Through the pilot, MNBBL witnessed the
potential income losses. annual vegetable income (up to $800 USD), benefit of working through CCs to engage
MANAGED ACCESS through increased investment and adoption of with small producers, women and marginalized
TO FINANCE This model was comprised of Marketing and improved climate-smart agriculture technologies. communities. MNBBL will continue to work with
Planning Committees (MPCs), which are iDE to grow their market reach into marginal,
In Nepal, smallholder farmers face a series of elected by farm production groups to manage In addition, the pilot sought to assess whether rural communities, which could encourage other
challenges in accessing agricultural finance. local agricultural Collection Centers (CCs), women CBFs were more effective in reaching financial institutions to evaluate the benefits
Lack of available agri-finance products in rural developed by iDE in previous programs. Through women farmers to foster engagement in the of reaching marginal communities with a
areas, and high amounts of collateral required this mechanism, loans were managed at the program and utilization of a loan. The results diversified product and service offering. If there
are some of the barriers for financial inclusion. community level and made available at the found that there were no significant statistical was an eventual crowding in of formal financial
Along with these constraints, climate change appropriate time, and with technical support, differences in terms of the characteristics of institutions, it could lead to a shift in the
has contributed to greater erratic weather, to assist in the commercialization of vegetable men and women CBFs. However, interestingly, accessibility of women and other small holders
droughts, flooding and pests – creating a production. Support for improved agricultural customers of women CBFs on average earned to utilize formal finance, and slowly shift norms
greater need for crop insurance to mitigate production was also coordinated by CCs 20% more income than customers of men and perceptions about their ability to engage
risk.14 The outmigration of men from many rural via community-based last-mile input supply CBFs. The end line study also found that 35% successfully in agriculture.
communities in Nepal has also contributed to agents trained in past iDE projects, known as of women farmers preferred working with a
a shift in the dynamics of farming households, Community Business Facilitators (CBFs). The CBFs woman CBF. The partnership revealed the importance
where women have taken primary responsibility provide local access to high-quality agricultural of sharing the risk between both financial
for most, if not all, smallholder farming activities. inputs (i.e. improved seed, micro irrigation, safe This finding suggests that smallholder women institutions, and community gatekeepers,
This creates an even greater imperative for integrated pest management) to farmers within clients may benefit from working with women the CCs and a development partner in iDE in
governments, banks, and other key actors their communities. CBFs earn a commission on CBFs. This may be because women are more developing a shared value initiative. This enabled
to improve access to credit and insurance for the sales they facilitate from the input supply comfortable engaging with other women the organizations to demonstrate the value
women, who have historically been excluded shop, and therefore have an an incentive to due to social sanctions around mixed gender and potential of women as viable clients for
due to socio-cultural and economic barriers, such promote the loan offered by Muktinath Bank, interactions. As a result of working directly with continued, formal engagement.
as lack of ownership and control over productive since farmers with increased access to capital will women sales agents, women small producers
resources.15 likely increase input supply purchases. have been able to purchase and utilize climate
smart technologies. Working through trusted
Through the INNOVATE project, International The pilot aimed to increase household income and local CCs also promotes greater integration
Development Enterprise (iDE) partnered with a through investment in climate-smart agriculture of women into leadership roles within the
Nepali financial institution, Muktinath Bikas Bank technologies, made possible through a bundled elected roles of the MPCs.
Limited (MNBBL), to pilot a new model of finance service offering that combined loan and crop
to reach rural farmers by utilizing an extensive insurance products to stimulate commercial
network of community aggregation centres, vegetable production. The pilot focused on
technical support, and product sales agents reaching women and other marginalized groups.
who manage and distribute agricultural loans in
two regions of Nepal. In order to appropriately During the project period, loans were approved
support uptake and security of agricultural loans, for over 1,000 farmers, with a total loan As a first-time commercial farmer,
this initiative also tested informal crop insurance portfolio valued at USD 200,000. Approximately Dipa earned about NPR 13,500
managed by the community collection centres 80% of those who received loans were women. (USD 110). Dipa noted this was
Over 300 farmers took advantage of the CC
her only local opportunity to earn
vegetable crop insurance product. These farmers
income and “it’s much easier to
spend money on the children
and myself” from the income she
earned from vegetables.
14 iDE. (2019). “iDE Final Pilot Report: Non-Traditional Financial Services for Smallholder Farmers in Nepal.” Produced and published for
MEDA INNOVATE.
15 Dr. Purushoam Shrestha. (2015). “Background Paper: Promoting Financial Inclusion for Women in Rural Nepal.”
Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 10 Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 11Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography
and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations
Decision Making Decision Making
2.4. KENYA: EXPANDING A organize women into groups and demonstrate Bidhaa Sasa had success in marketing their at a company level, to increase market share
products like clean cookstoves or drying range of agricultural products to rural women, and product offering opportunities. Women
WOMEN-CENTRIC BUSINESS canvases for grain. The company uses this by experimenting with the products that would customers showed that repayment was possible
MODEL FOR PRODUCT approach because it works well for rural women, appeal to their customers and fit within their even for goods not perceived as income
DIVERSIFICATION as it leverages women’s already strong social business model. In total, 5 new agricultural generating. As long as a product had time and
capital and networks within communities. products/tools were added to their product money-saving benefits, and improved farm
In rural Kenya, many women lack access Bidhaa Sasa utilizes these networks for product catalogue, with over 3,661 units sold to a majority conditions, women took an interest in it. For
to technologies (including agricultural demonstrations to raise awareness of the (76%) of female customers during the pilot many women, multiple competing demands and
technologies) to improve their productivity and benefits of different agricultural goods and tools period. Bidhaa Sasa amassed good repayment expenditure priorities can influence the decision
overall quality of life. Some of the common among women. rates, with PAR30 ranging between 0% to 12% to invest in productive equipment or inputs.
barriers to adopting new agricultural technology depending on the product and accumulated a Bidhaa Sasa found that many women first
include a lack of knowledge by farmers about Bidhaa Sasa partnered with MEDA INNOVATE to Net Promoter Score (NPS)16 ranging from 41-56% invest in home-based tools related to cooking,
what products exist, how to access them, learn whether its current distribution and finance depending on the product.17 and then prioritize agricultural tools – which
and most importantly, affordability. These model works to effectively promote adoption of may speak to their different roles within the
bottlenecks are further exacerbated for women agricultural innovation and goods, in order to Through their sales during the pilot period, household.
in rural areas, as they perpetually earn less, have expand their range of product offerings to rural Bidhaa Sasa found that women are interested in
less access to finance and financial autonomy, women. Bidhaa Sasa aimed to show that with purchasing high-value agriculture tools and are Bidhaa Sasa understands the social norms at
and are less likely to have a land title or a women-centric model, repayment rates on willing to pay for them given appropriate terms. play within rural communities and leverages
ownership over key assets. Women smallholders attractive, affordable and trusted goods, would The company learned that it is not necessarily the women’s social capital to market their products
are traditionally ignored by input suppliers as be equal to or better than those achieved by highest earner within a household that makes to other women and grow their market share. By
a result of the commonly held belief that men microfinance institutions selling larger loans. final purchase decisions, but rather the member doing so, Bidhaa Sasa challenges the commonly
in farming households are the money holders in the household that has a relationship with the held perception that women are not interested
and are responsible for making the decisions RESULTS service provider. By prioritizing women as the in and/or cannot afford these products.
around investments in assets or large purchases consumer, Bidhaa Sasa proved that rural women Groups of rural women continue to purchase
related to production. Women are often seen As a result of the pilot, Bidhaa Sasa found that can absorb risk, adopt new technologies and the company’s products and demonstrate to
as being too poor, ignorant, or lacking adequate only technologies that really transform the user demonstrate good repayment behaviour. others in their communities their commitment
collateral to be viable customers. This shared experience are worth commercializing, both for to increasing productivity and agency within
belief stifles women’s ability to engage and the impact potential and the commercial viability The pilot results also confirm the importance agricultural systems.
thrive in farming as a business. for the company. of tackling perceived social norms or beliefs
In response to this, Bidhaa Sasa, a last-mile
distribution and finance company, developed a
product catalogue that specifically targets this
underserved client segment with life-changing
household goods and agricultural innovations.
Bidhaa Sasa utilizes client-centric approaches to
better understand the cashflow constraints and
power dynamics that drive agricultural decision-
making within the home. The company also
targets women as their main customers, and
women make up over 70% of their client base.
Bidhaa Sasa uses a group liability model for
product outreach and sales as a form of non-
traditional credit risk mitigation, commonly
referred to by the company as the Tupperware 16 Net Promoter Score (NPS) is a customer loyalty and satisfaction measurement taken from asking customers how likely they are to
approach. Top performing customers become recommend the company, service or product to a friend or colleague.
promoters (known as group leaders) who 17 For more on the methodology and product diversification, read the full Bidhaa Sasa case study.
Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 12 Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 13Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography Introduction Social Norms Savings and Agricultural Input Supply Network Community Managed Product Diversification Conclusions & Bibliography
and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations and Agricultural Training Models Agent Banking Access to Finance in Kenya Recommendations
Decision Making Decision Making
3. Conclusion and Recommendations
3.1. RECOMMENDATIONS FOR FINANCIAL INSTITUTIONS
This paper highlights examples from INNOVATE IFPRI (2019) notes that the first critical step in AND IMPLEMENTING ORGANIZATIONS WORKING IN
that demonstrate the operational implications shifting social norms is to contextually diagnose WEE AND AGRICULTURE
for encouraging greater engagement by women the existing gender norm to better understand
in agriculture and finance through increased which behaviours are deemed acceptable, and Customer Acquisition and Retention • Understand client decision-making
decision-making over production. This is critical if those attitudes or social norms are upheld by processes and priorities in the
to explore as the World Bank estimates that personal beliefs, social norms and sanctions.19 • Utilize sex-disaggregated indicators to household, consider such nuances and
if the gender gap in agriculture closes, yields Social norms do not exist in a vacuum, and evaluate results and consider qualitative complexities in product or service design
on women-run farms could increase by 20- it’s the communities, governing laws and results management frameworks to and deployment.
30%, effectively raising agricultural outputs in regulations that shape the way men and women ensure quality over time.
developing countries by 2.5-4%, which could act. Norms are also learned, and are constantly Partnerships and Collaboration
lead to increased and sustained livelihoods being changed through new interactions and • Test assumptions of women’s willingness
for millions of farming families.18 Decisions by observations of public life – meaning that to pay, engage, and adopt new • Work with grassroots women’s
smallholder farmers are not always driven by women and men shift their personal beliefs and behaviours, technologies or practices, organization when possible to ensure
revenue growth and perceived cash flow. For positions throughout their lifetimes on what within their agricultural settings. programming, products or services ‘do
many women, decisions at the household level is or isn’t appropriate. The INNOVATE cases no harm’ within the context of intra-
are influenced by a complex nexus of social show that by actively engaging with women in • Seek to understand and uncover complex household relations, but also within
norms which can promote or restrict economic underserved and underrepresented communities, social norms, which often dictate communities and existing community
empowerment within the agricultural sector. The organizations, financial institutions and the the actions, or inactions, of men and structures.
INNOVATE cases demonstrate the importance of private sector can begin to initiate social norms women within what seems like practical,
working with partners to develop products and change. For example, many of the Bidhaa Sasa agricultural household decision making. • Engage women’s groups and women
services that are tailored to the needs of women clients in rural Kenya shared the opinion that stakeholders through participatory
‘big investments’ in agriculture are relegated to • Cash flow is imperative for rural consultative methods to design, deploy
Can household decision-making on finance and the husband. However, through Bidhaa Sasa’s smallholder households, but for and monitor new or existing models to
agricultural innovations shift social norms on peer-to-peer networks, targeted communications many that is not the only constraint ensure gender-based analyses occur.
women’s role in agriculture to be more inclusive? and demonstrations, affordable pricing, and determining decisions on agriculture.
Time will tell. Social norms are sustained within tailor-made solutions for women, this idea • Engage enabling environment
the individual and are upheld at the household, changed. Women decided to purchase Bidhaa Product Development stakeholders, including government and
community and national levels. Truly achieving Sasa products, and therefore challenge the myth community leaders, market enablers, etc.
long-term, sustained change in social norms that investments require men – when in fact, • Test new ideas with small pilots in limited early on in your work to ensure smooth
takes years, if not decades of intergenerational they can be done by all. geographic areas to build trust, consensus gender mainstreaming across actors.
behaviour and systems change, as well as and shared understanding among clients,
communication among women and men within agents and other shared parties; remain • Work within groups, associations or
a household or society. agile and focused on learning. collectives, and promote peer-to-peer
sharing networks, as women often have
• Develop products and services that are rich community ties and benefit from
tailored to client needs, by accepting learning and sharing new information
alternative forms of collateral (read more with peers. Similarly, engage husbands
about this topic in MEDA’s learning and other household members alongside
paper ‘Experiences in Gender-Sensitive women, when appropriate, to encourage
Solutions to Collateral Constraints’); equality and shared understanding.
integrating flexible repayment terms; and
18 FAO. (2011). “Closing the gender gap in agriculture.”
mobile or door-to-door agent banking.
19 IFPRI. (2019). “Gender and Social Norms in Agriculture: A Review.”
20 Ibid.
Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 14 Lessons from Farming Households: Agricultural Decision Making and Shifting Social Norms for Women’s Economic Empowerment MEDA INNOVATE • 15Introduction Social Norms
and Agricultural
Savings and Agricultural
Training Models
Input Supply Network
Agent Banking
Community Managed
Access to Finance
Product Diversification
in Kenya
Conclusions &
Recommendations
Bibliography
MEDA INNOVATE LEARNING SERIES
Decision Making
Lessons from Farming Households:
Agricultural Decision Making and
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for MEDA INNOVATE. funds research in developing countries to promote growth,
Contact MEDA INNOVATE reduce poverty, and drive large-scale positive change. A
IFPRI. (2019). “Women’s Empowerment in Crown corporation, it supports leading thinkers who advance
E-mail: innovate@meda.org knowledge and solve practical development problems. IDRC
Agriculture Index (WEAI).”
Web: www.meda.org/innovate provides the resources, advice, and training they need to
ISF Advisors and the Mastercard Foundation implement and share their solutions with those who need them
Tel: 1-800-665-7026
Rural and Agricultural Finance Learning Lab. most. In short, IDRC increases opportunities — and makes a real
HQ Address: 595 Parkside Drive, Suite difference in people’s lives.
(2019). “Pathways to Prosperity Deep Dive: 2, Waterloo, ON, Canada N2L 0C7
Understanding women’s rural transitions and
service needs.” Washington, D.C. Offices in Canada, the United States, Its head office is located in Ottawa, Canada, while four
and around the world. regional offices keep us close to our work. They are located in
MEDA. (2020). “Experiences in Gender-Sensitive Montevideo, Uruguay; Kenya; Amman, Jordan; and New Delhi,
Solutions to Collateral Constraints.” Visit our website for a complete list. India.
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