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The Use of Warehouse Receipt Finance in Agriculture in Transition Countries











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    Document
    Lithuania: Financing of Warehouse Receipts - Legal Review
    Report N. 1 - October 2002
    2002
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    Warehouse receipts are used to facilitate the financing of primary agriculture, agricultural trade and food processing. By storing grain or other agricultural commodities in licensed warehouses, farmers, traders and agri-processors have the possibility to obtain receipts that can be used as collateral with local credit institutions. This system has proved particularly useful in Central and Eastern European countries where agricultural enterprises do not have strong credit histories and have few assets to pledge as collateral. In these circumstances, local banks often prove reluctant to lend to the agricultural sector. For warehouse receipts to become a convincing instrument to secure loans to agricultural enterprises, a coherent institutional and regulatory framework is required. Banks need to be able to trust warehouses, which should be licensed and supervised properly, and banks must be certain that the receipts can be used as effective deeds to exercise their rights in case of loan default.
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    Book (stand-alone)
    The use of warehouse receipt finance in agriculture in transition countries. 2009
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    If agriculture is to contribute to the development of the economy, and farmers are not to be left behind, then agriculture needs a proper credit system. Post-harvest credit in the form of warehouse receipt finance has proved to be a critical component for agriculture sector growth in emerging economies. Efficient warehouse receipt finance allows farmers to avoid selling directly after harvest, when prices are depressed. It encourages storage by reducing the cost and by increasing liquidi ty in entire commodity chains, which in turn reduces price volatility. By giving farmers access to a new financing tool, it enhances their ability and incentives to invest in production. This paper discusses the state of warehouse receipt finance in countries of Eastern Europe and Central Asia (ECA), and possibilities for enhancing its use. It describes legal and regulatory issues that need to be resolved, and how the international community can help in the process. Annex 1 summarizes some experiences with warehouse receipt finance in Africa and Asia. It is hoped that this paper will encourage all those interested in agricultural development in ECA and other regions to improve the conditions for and use of warehouse receipt finance, and that it will assist them in doing so.
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    Book (stand-alone)
    Technical manual for the construction and use of family-sized metal silos to store cereals and grain legumes 2015
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    The Technical manual for the construction and use of family-sized metal silos to store cereals and grain legumes presents simple instructions for the construction and use of various types of family-sized silos, with capacities of between 0.12 m3 and 4.2 m3 (approximately 120 and 4 000 kg). The contribution of this type of silo to food security, to meeting the Sustainable Development Goals and to the well-being of small farmers is extremely important, particularly during agricultural crises cause d by a number of external factors, including financial problems. The silos have a key role, not only to safeguard family nutrition in the peasant sector, but also so that small farmers can regulate trading in surplus goods and have access to markets when they are favourable. The manual contains guidelines for the use and manufacture of family-sized silos at low cost, accessible to craftsmen and farmers. The manual is based on field experience gained by the Swiss Agency for Development and Cooper ation (SDC) and subsequently by numerous projects carried out by FAO in more than 22 developing countries.

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