Farmer-led irrigation (FLI) can substantially increase the reliability, quality and yields of agricultural produce, which leads to an increase in incomes and a reduction in poverty. This benefit could be widespread if FLI reaches its expansion potential. However, a lack of affordable credit prevents many smallholders from adopting irrigation technologies such as pumps, pipes and sprinkler systems.
Lenders are often hesitant to offer financial products to rural smallholders, preferring to focus on clients who are perceived to be lower risk and less costly to reach.
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