Improving Cash-Constrained Smallholder Farmers’ Revenue: The Role of Government Loans

This paper examines how the need for immediate cash by smallholder farmers may lead to undesirable selling decisions that hurt their revenue and analyzes the efficacy of government loan policies in tackling this challenge. We develop a game-theoretic model to characterize the base scenario of no loan, uncovering the impacts of cash needs on farmers’ revenue. We then examine how a government loan, under which farmers store some of their production at government warehouses in exchange for immediat