Empowering Small-Scale Farmers with Decentralized Finance (DeFi) via Ethereum Smart Contracts

The agricultural sector, especially within small-scale farming, faces significant challenges due to complex supply chains, fragmented information systems, and limited access to financial services. This study presents a novel framework leveraging Decentralized Finance (DeFi) and Ethereum smart contracts to empower small-scale farmers by enhancing supply chain transparency, traceability, and financial inclusivity. By implementing decentralized ledger technology, our approach mitigates issues related to data opacity and inefficient stakeholder engagement, facilitating a seamless and transparent digital record of transactions, inputs, and product movements. Unlike conventional systems that depend on centralized financial intermediaries and data repositories, our DeFi model, enabled by Ethereum smart contracts, introduces an innovative mechanism for financial transactions, credit access, and equitable participation in the supply chain. The research findings indicate the potential of DeFi and intelligent contracts in transforming agricultural supply chains by offering small-scale farmers improved access to markets, financial services, and real-time data for decision-making. We demonstrate high accuracy and reliability through robust, innovative contract implementations and comprehensive performance measurements. Challenges remain in technical implementation, farmer education, and adapting regulatory frameworks to accommodate these decentralized solutions. The study highlights the transformative potential of Ethereum smart contracts in reshaping the agricultural landscape and fostering greater efficiency, transparency, and financial empowerment for small-scale farmers.