ABSTRACT

Agriculture is the largest sector in Somalia's economy. In 1987, it contributed about two-thirds of Gross Domestic Product and provided a livelihood for 80 percent of the population. Crop production contributed only 14 percent of Gross Domestic Product, and yields are generally low. One reason for the low productivity is limited usage of modern agricultural inputs. Because per capita income is extremely low, approximately US$290 according to World Bank figures, it is generally assumed that farmers do not have savings sufficient to finance all of their investment opportunities or even seasonal input requirements. Thus, access to loans by small-scale farmers as well as large-scale farmers and plantation owners is thought to be essential for increasing production.