"Impact of productive associations in credit demand in small coffee farmers in Peru"

Abstract

"Credit demand in farmers has remained low despite the increase of credit allocations and bank offices in rural areas. Low productivity and profitability could be key determinants of this low demand due to a possible poverty trap generated. There is evidence in coffee sector that productive associations could increase both factors, therefore, what is the impact of them on credit demand in small coffee farmers? Using a propensity score matching model and data from IV National Census of Agriculture the study demonstrates that small associated coffee farmers increase more than two times the odds of credit request compared to those that are not associated. This result indicates that cooperatives may have a causal effect on credit uptake. © 2026 Latin American and Caribbean Consortium of Engineering Institutions. All rights reserved."