10 | SMALLHOLDER DIARIES Implications for financial solutions: Translating the evidence into financial tools tailored to each smallholder household profile he Smallholder Diaries e‡plored the relationship between the leel of agri- cultural commercialiation and the breadth of financial portfolios in each country sample, and releant financial tools must address the uni ue chal- lenges and needs of each of these general profiles of smallholder households (see igure œS-¡) • •oncommercial smallholders in the oambi ue sample had a ery nar- row portfolio of financial tools ˆdvances in their financial inclusion will ” liely emphasi—e savings and layaway products, through digital channels where possible, and the better management of agricultural mechanisms of finance such as crop storage as opposed to pure, standalone credit products €mproved agronomic practices and better agricultural ris management (eg, post-harvest storage, water catchment, drought-tolerant crop varieties) are also important ƒarger buyers and agricultural processors would need to bundle a meaningful pacage of agronomic support with financial tools to reach more smallholders in this profile ˆdditional financial tools to help families store and stretch the small amounts of income earned on a daily basis would also be beneficial, especially as a type of safety net during the hunger season • Smallholders in loose alue chains in the anania sample need greater capacity to store money across a dierse set of saings instruments, as well as access to higher leels of credit to maƒe desired inestments in agricultural production ¦verwhelmingly, the Smallholder ‰iaries sample in Œan—ania ept its savings in-ind or under the mattress, presenting a clear opportunity for Ss to offer more avenues to store money ˆ deeper under- FIGURE ES-8: Three smallholder profiles based on degree of agricultural commercialization and breadth of financial portfolio Rapid Tight value chains monetization Smallholders in loose value chains Narrow Broad portfolio portfolio/ credit availability Noncommercial smallholders Non- monetization/ self-consumption
Financial Diaries with Smallholder Families Page 19 Page 21