Niger is a vast West African country with an area of 1,267,000 km<sup>2</sup> and a population of 17.1 million inhabitants according to the 2012 population census. The country faces two structural problems that hinder its development. It is a landlocked country and thus transaction costs are high, and it has a harsh climate that makes its agricultural production vulnerable. Most of the country (two-thirds) is located within the Sahara Desert, and water covers only 0.02 percent of the total area of the country (Collier, 2007). In addition, the rapid rate of population growth (3.9 percent) also contributes to the country’s constraints since it requires very good economic performance to create jobs and reduce poverty. With a GDP per capita of $383 in 2012, Niger is a poor country. The incidence of poverty was 48.2 percent in 2011, with 17.9 percent in urban areas and 54.6 percent in rural areas (INS and The World Bank, 2013). Poverty is particularly concentrated in rural areas where 94 percent of the poor live. Hence there is a clear link between poverty reduction and agricultural production in Niger.

Niger is essentially an agricultural country. More than 8 out of 10 persons live in rural areas where agriculture is the predominant economic activity. An estimated 90 percent of all households and 97 percent of rural households earn income from at least one agricultural activity in Niger. Furthermore, agriculture accounts for over half of household income on average and over 60 percent of rural household income. In addition to its importance at the household level, agriculture is equally important at the macroeconomic level. Between 2004 and 2011, crop and livestock production contributed approximately 27 and 13 percent to GDP, respectively. Agricultural production is predominantly focused on the satisfaction of household needs rather than accumulation of wealth. Although average farm size in Niger is above average compared to other African countries (at more than 5 hectares per agricultural household in Niger), the vast majority of crops grown are cereals. Especially predominant is millet which is grown on more than 80 percent of plots. However, sorghum, cowpeas and to a lesser degree peanuts are also important crops in Niger. During the agricultural off-season, households grow onions, rice and other vegetables. Production of cash crops is quite limited in Niger unlike several of its neighbors who produce cotton (Benin, Burkina Faso and Mali).

Nigerien agriculture is fragile due to the harsh climate that results in water scarcity as well as external shocks that affect the country with some regularity. During the past 10 years (2002-2012), Niger went through three years of drought (2004, 2009 and 2011) which have resulted in significant grain deficits. During the 2011 agricultural season, the cereal deficit was estimated to be about 692,000 tons (INS and SAP, 2011). This deficit represents more than 13% of the total cereal production in 2010 which was a normal year. When the country suffers cereal deficits, the food and nutrition situation is difficult, especially for vulnerable persons such as young children and the elderly. The cereal deficits do not only affect agriculture; they also affect livestock whose food intake is also reduced. While there is no denying that 4