Economics & Finance / Industry & Sectors / Agriculture & Food

Why Kenyan Farmers Sell Corn at Rock-Bottom Prices—And How a Simple Trick Boosts Profits 6%

In rural Kenya, farmers face a brutal cycle: harvest floods the market with corn, prices crash, and they’re forced to sell low—only to buy back the same grain months later at a 30-40% markup. A groundbreaking experiment with 132 savings clubs in Busia reveals a shocking solution: collective storage. By moving grain out of homes and into sealed, pest-proof bags stored by a club treasurer, farmers delayed sales by a month, got 6% higher prices, and doubled their chances of selling. This study by Shilpa Aggarwal, Eilin Francis, and Jonathan Robinson (NBER, 2018) shows it’s not just about technology—it’s about breaking social pressure and temptation. The result? A 2.8-to-1 return on investment. Forget fancy finance; this is the real-world hack that changes everything.