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Value chain financing in agriculture

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This paper provides an overview of value chain financing concepts and applications. It highlights issues and directions in the commercialization of agriculture, value chain development, agricultural and agribusiness finance and discusses the potential benefits and cautionary pitfalls associated with value chain financing. It is argued that value chain development supported by appropriate policies, institutions and services that constitute an enabling business environment can be instrumental in leveraging access to financial services in agriculture in developing countries. In this regard, ideas for promoting value chain financing are proposed and questions on its future are offered for reflection.
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Keywords: AGRICULTURAL FINANCE; AGRICULTURAL RISK; CONTRACT FARMING; VALUE-CHAIN FINANCING

Document Type: Research Article

Publication date: 2007-06-01

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