Expected effects of devaluation on cereal production in the Sudanian Region of Mali

The Sahelian countries have been much more successful attaining higher yields of export crops, including cotton and peanuts, than with increasing yields of their cereals and other food crops. One principal explanation has been the poor economic and agricultural policy support historically given to food crops. Now this is being changed with structural adjustments, including the 1994 devaluation of the CFA. Intensive cereal production became more profitable with a lag after devaluation. In southern Mali, even highly risk-averse farmers will adopt intensive sorghum technologies, according to risk programming results. Credit can be generated internally for this activity by selling some of the livestock. Returns were very high for this intensification but its further expansion would require more internal liquidity or the expansion of credit in order to increase purchases of inorganic fertilizers.