Thumbnail Image

Innovative agricultural finance and risk management. Strengthening food production and trade in the transition region

FAO Investment Centre. Directions in Investment No. 7









Also available in:
No results found.

Related items

Showing items related by metadata.

  • Thumbnail Image
    Book (stand-alone)
    The use of warehouse receipt finance in agriculture in transition countries. 2009
    Also available in:

    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.
  • Thumbnail Image
    Book (series)
    Evolution of country-specific investment requirements of agricultural and rural extension and advisory services 2018
    Also available in:
    No results found.

    The developing world witnessed an extraordinary period of food crop productivity growth over the past 50 years, despite increasing land scarcity and rising land values. Although populations had more than doubled, the production of cereal crops tripled during this period, with only a 30 percent increase in land area cultivated. The Green Revolution brought high-yielding varieties of cereal grains, expansions of irrigation infrastructure, modernization of management techniques, distribution of improved seeds, synthetic fertilizers and pesticides, yet was characterized by regional differences in performance (Wik, Pingali and Brocai, 2008). Within this context two important externalities emerged: the environmental and the socioeconomic impacts of the change. The slowdown in yield growth that has been observed since the mid-1980s can partially be attributed to degradation of agricultural resources. At the same time, transition from traditional agriculture, just like the industrial revolution in the 19th century and the informatics revolution in the turn of the 21st century, also increased economic disparities, with a widening gap between rich and poor. The poorest producers are the most vulnerable to losing their farmland due to debt, while the increased level of mechanization removed a large source of employment from the rural economy (Oasa, 1987). Faced by these risks, farmers are often returning to subsistence cultivation, rendering them more vulnerable to weather variability due to climate change. Some regions were able to adopt Green Revolution technologies faster than others for political and geographical reason, so inter-regional economic disparities also increased. For many of the currently more than 1.1 billion people that are living in poverty, economic growth based primarily on agriculture and on non-farm rural activities, is essential to improve their livelihoods. The majority of the poor (over 70 percent live in rural areas), includes subsistence farmers, herders, fishers, migrant workers, artisans and indigenous people (IFAD, 2011). Promoting agricultural growth in rural areas and giving rural people better access to land, water, credit, health and education, is essential to alleviate poverty and hunger, to feed the growing population and address its changing consumption patterns. (FAO, 2009). Yet, agricultural growth will depend in the future less on input and land increase, but increasingly on total factor productivity, i.e. the performance of institutions, including research, extension and advisory services, and infrastructure (roads, ICTs, etc.) (Fuglie, 2012).
  • Thumbnail Image
    Book (series)
    The impact of markets and policy on incentives for rice production in Rwanda 2018
    Also available in:
    No results found.

    The prioritization of rice as a strategic food and cash crop in Rwanda has paid dividends, with production increasing by one-third during 2010–2015. However, production expansion has failed to keep pace with growing consumption demand. In 2015, around 30 percent of national consumption was met by imported long grain rice. The paper aims to single out the constraints which have been preventing the Rwandan rice sector to fully seize market opportunities in recent years. Looking at Nominal Rates of Protection faced by agents in the rice value chain over 2005–15, we find rice producers enjoy significant price incentives, mostly as a result of protective trade measures. Other factors, however, appear to be hindering investments in land, the adoption of modern inputs, and the production of high quality rice that can more readily substitute imports. This evidence is used along with recent literature and stakeholder interviews to formulate policy recommendations.

Users also downloaded

Showing related downloaded files

No results found.