Reforming cameroon’s government credit program: Effects on liquidity management by small farm borrowers

Higher interest rates and creditlimits as well as modified lending practices have been proposed to improve the performance of credit programs for small farmers in developing countries. Models based on Cameroon field data are used to generate results from such reform proposals. The results suggest that small farmer benefits could be increased by increasing credit limits and flexibility in the use ofloan proceeds, while reducing default rates and expanding program outreach. © 1970 American Agricultural Economics Association.