The institutions have a major role to play in the promotion of agricultural development as certain problems cannot be solved at the individual level, but require collective action. The development of credit institutions is important for agricultural development. Farmers generally have to sell their production just after harvest in order to reimburse their debts and pay for necessary commodities. The ’warrantee/guarantee approach developed in Niger consists of farmers depositing the grain in a store after the harvest. The credit fund (local institution) then pays the value of the stored grain. Farmers may invest this money in activities such as gardening, purchase of fertilizer or other. About 6 months later, they may reimburse the credit and they receive the grains that they had deposited in the store. Subsequently, they may sell part of the grain that they do not need in order to get some income. The price of the millet is normally higher at that time than during the harvests.

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