Feasibility study for ARM investment in Niger: futures contract and warrantage network in support of national strategies

Stakeholders in Niger adopted the 2016-2020 action plan to increase irrigation, develop value chains and the fight against malnutrition. Indeed, these areas of focus are not enough to enhance food security in a Sahelian and rain-fed economy of Niger. Hence, it is necessary to give space for other initiatives to manage agriculture finance and storage risks.

This feasibility report assesses the potential of developing warrantage and future contract activities as they exist in Niger and other countries. Specifically, in terms of performance, adoption by farmers, and the propensity of the HC3N to promote the development of these tools. Drawing on past initiatives, the study reveals the contributions of the warrantage and future contract schemes in increasing income, market and food security. However, the effectiveness depends on the economic structure of agricultural products as well as the commercial, legal and regulatory system that underpins it.