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Warehouse receipt systems: lessons from Niger
This documentation provides a summary experience of a microfinance system called the “warrantage system“ in which farmers access small loans to finance their house income generating activities from banks and microfinance institutions. The practice recognises the role of micro credit to smallholder farmers‘ success and provides an appropriate response. Farmers store their end of season surplus produce in a secured storage facility owned by the farmers‘ cooperative. The cooperative retains one of the keys to the storage facility while the bank/micro finance institution keeps the other key. The bank then issues farmers who have surplus produce in the storage facility with loans to finance their household Commercial activities and pay back latter.