Perception of producer satisfaction and the effect of agricultural financing models implemented by decentralized financial systems in Northern Benin

Abstract

Decentralized Finance (DeFi) operating in Benin are essential for financing the agricultural sector and for achieving the Sustainable Development Goals. This research contributes to the debate on the effectiveness of agricultural financing models proposed by DeFi in Northern Benin. Two theoretical approaches are mobilized to assess farmers’ perceptions : Triandis’ interpersonal behaviour model (1979) and the balanced incomplete block design method for analyzing farmers’ choices. A total of 585 farmers were surveyed, including 385 financing beneficiaries, using purposive sampling. Data were analyzed with R version 4.3.0 and RStudio version 2022.02.0. The results highlight a preference for individual financing models (61.26%) over group-based models (38,74%), as they better meet the immediate needs of farmers. Regarding the impact of financing models on agricultural factors of production, farmers acknowledge the positive effect of individual financing on the purchase of inputs and equipment, but criticize the inability of group financing models to stimulate overall productivity and land expansion. The overall perception of support systems implemented after financing is negative, as they remain disconnected from farmer’s real needs. It therefore appears that while financing models satisfy beneficiaries in terms of immediate operational aspects (inputs, equipment, financial needs), and they fail to address structural expectations such as productivity growth and farmland expansion