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Finance for Food : Towards New Agricultural and Rural Finance.

Bibliographic Details
Main Author: Köhn, Doris.
Format: eBook
Language:English
Published: Berlin, Heidelberg : Springer Berlin / Heidelberg, 2014.
Edition:1st ed.
Subjects:
Electronic books.
Online Access:Click to View
Table of Contents:
  • Intro
  • Preface
  • About This Book
  • Table of Contents
  • Abbreviations
  • PART I: The Big Picture: Global Trends Affecting Agricultural Finance
  • CHAPTER 1 Global Dynamics in Agricultural and Rural Economy, and Its Effects on Rural Finance
  • 1 What's New in Agricultural and Rural Environment?
  • 1.1 Mega-Trends Impacting the Rural Economy
  • Liberalization of Trade in Agricultural Crops
  • Demography and the Place of the Youth
  • Migration as a Way of Life and a Capital Building Strategy
  • Awareness on Climate Change and New Opportunities
  • 1.2 Mega-Trends Impacting the Agricultural Economy
  • Economic Growth in Emerging Countries and in the BRIC: Impact on Demand for Agricultural Produce
  • Emergence of an Urban Middle Class with New Consumption Patterns
  • 1.3 Mega-Trend Impacting Both Agricultural and Rural Economy
  • Technology and the Cell Phone and Internet Revolution
  • The Agricultural and Rural Environment Today
  • 2 Emerging Models in Agricultural and Rural Finance
  • 2.1 Definitions and Lessons from the Old Agricultural Finance
  • 2.2 Modern Rural Finance: An Emerging Model Drawing from Microfinance Best Practices
  • 2.3 Value Chain Financing, Borrowing from Private Sector Financial Services to Small and Medium Farmers
  • Brief Definition of Agricultural Value Chains and Value Chain Financing
  • Role and Positioning of Financial Institutions
  • The New Agricultural and Rural Finance Paradigm
  • 3 Potential Impact of New Agricultural and Rural Finance and Role of Major Stakeholders
  • 3.1 Potential Impact at Micro, Meso and Macro Levels
  • 3.2 Roles of Governments (Central and Local), Donors and Private Players in Supporting the New Agricultural and Rural Finance
  • Role for Governments
  • 3.3 Role for Donors
  • References
  • Publications on Value Chain Financing
  • CHAPTER 2 Food Security and a Holistic Finance for Rural Markets.
  • 1 Commercialisation of Farming as an Opportunity
  • 2 The Cross-Cutting Relevance of Transport Infrastructure
  • 2.1 Food Which Is Never Produced
  • 2.2 Post-harvest Losses as a Critical Factor for Food Security
  • 2.3 Post-harvest Losses as a Factor for Farm Income
  • 2.4 Efficiently Organised Value Chains Can Reduce Post-Harvest Losses
  • 3 The (Potential) Contribution of the Financial Sector
  • 4 Conclusion
  • References
  • PART II: Institutional and Process Innovations in Serving Rural Clients
  • CHAPTER 3 Finance Through Food and Commodity Value Chains in a Globalized Economy
  • 1 Introduction
  • 2 Increased Importance of Value Chains
  • 3 Organization and Structure of Value Chains
  • 3.1 Increasing Public and Private Standards
  • 3.2 Increasing Consolidation in Processing and Retail
  • 3.3 Vertical Coordination and Value Chain Finance
  • 4 Small Farmer Participation in Value Chains
  • 4.1 Small Farmer Inclusion and Governance
  • 5 Value Chain Finance
  • 6 Models of Private Sector VCF
  • 6.1 Trade Credit
  • 6.2 Interlinked Contract-Farming
  • 6.3 Loan Guarantee Programs
  • 6.4 Special Purpose Vehicles
  • 6.5 Warehouse Receipt Finance
  • 7 Importance of VCF
  • 8 Impact of VCF on Productivity, Quality and Output
  • 9 Policy Issues
  • References
  • CHAPTER 4 Agricultural Growth Corridors - Unlocking Rural Potential, Catalyzing Economic Development
  • 1 Global Challenges
  • 2 African Agriculture
  • 2.1 African Challenges
  • 2.2 Political Support
  • 2.3 African Green Revolution
  • 2.4 African Potential
  • 3 Value Chains
  • 4 Growth Corridors
  • 4.1 Corridor Clusters
  • 4.2 Corridors Established
  • 5 The BAGC
  • 6 The SAGCOT
  • 6.1 Capital Requirements
  • 6.2 Agro-Industries
  • 6.3 Regional Integration
  • 7 Infrastructure Backbone
  • 8 Investment Opportunity
  • Grow Africa
  • 9 Conclusion
  • References.
  • CHAPTER 5 Innovative Microfinance: Potential for Serving Rural Markets Sustainably
  • 1 Agricultural and Rural Microfinance
  • 1.1 Definitions
  • 1.2 The Subsidized Agricultural Credit Paradigm
  • 1.3 The Financial Systems Approach
  • 2 Microfinance Serving Agriculture and Rural Areas
  • 2.1 Reasons for MFIs Expanding into Rural Areas
  • Overconcentration in Some Markets
  • Improve Efficiency and Sustainability
  • 2.2 Required Adjustments in Methodology: Becoming Client Oriented
  • Product Design
  • Individual Lending
  • Decentralization and Staffing
  • Management Information Systems (MIS)
  • 2.3 Successful MFIs Rerving Rural Areas and Agriculture
  • Three Acclaimed Pioneer Asian Institutions
  • ProCredit Bank El Salvador (Formerly Financiera Calpia)
  • Centenary Bank, Formerly Centenary Rural Development Bank Ltd. (CERUDEB), Uganda
  • Opportunity International Bank of Malawi
  • 3 Member-Owned MFIs in Agricultural and Rural Finance
  • 3.1 Four Cooperative Networks
  • 3.2 Strengthening Rural Financial Cooperatives
  • 4 The Role of Donors and DFIs in Overcoming Barriers
  • 4.1 Political Interventions and Interest Rate Ceilings
  • 4.2 Subsidize Institutions and Public Goods
  • 4.3 Supporting Networks
  • 4.4 Risk Mitigation
  • 4.5 Measure and Evaluate
  • References
  • CHAPTER 6 Busting Agro-Lending Myths and Back to Banking Basics: A Case Study of AccessBank's Agricultural Lending
  • 1 Greenfield Small Business Bank in a Transitional Economy
  • 2 Lack of Agricultural Finance
  • 3 Typical Reservations Against Lending to Farmers
  • 4 Launch of Agro Loan Product
  • 5 Results After Introducing the Dedicated Agro Loan Product
  • 6 Agro Loan Product Drives Regional Bank Expansion and Access to Financial Services
  • 7 Agro Loans Providing Stability During Crisis
  • 8 Busting Agro-Myths
  • 9 Risk Management Approach
  • 10 Conclusion
  • References.
  • PART III: Dealing with Risks in Agricultural Finance
  • CHAPTER 7 Where Is the Risk? Is Agricultural Banking Really More Difficult than Other Sectors?
  • 1 Introduction
  • 2 Risks in Agricultural Finance
  • 2.1 Definitions and Classifications of Risks
  • Risks in Agriculture Versus Risks in Agricultural Finance
  • Risks in Agriculture: Principal Risks Versus Specific Risks
  • Risks in Agricultural Finance
  • 2.2 Principal Credit Risks
  • 2.3 Specific Risks in Agriculture
  • Production Risk
  • Market and Price Risks
  • Level and Correlation of Production and Market Risks
  • 2.4 Political Risks
  • 2.5 Empirical Evidence on Actual Risks
  • 3 Approaches to Risk Management in Agricultural Finance
  • 3.1 Managing Principal Credit Risks
  • Typical Risk Management Mechanisms and Their Limitations
  • Asset-Backed Lending: Focus on Collateral
  • Expert-Based Appraisal of Repayment Capacity
  • Portfolio Management: Exposure Limits and Diversification
  • Building Risk Reserves: Loan Loss Provisioning
  • Lessons Learned from Successful Agricultural Lenders
  • Contractual Arrangements and Agricultural Value Chains
  • Lessons Learned from Rural Microfinance
  • Emergence of a New Paradigm in Rural Finance
  • 3.2 Approaches to Manage the Specific Risks in Agriculture
  • Segmenting Risks into Layers
  • Risk Retention by Farmers: Prevention, Mitigation and Coping Strategies
  • Risk Pooling and Risk Transfer: Market Solutions and Instruments
  • Traditional Crop Insurance
  • Index-Based Insurance
  • Catastrophic Risk and Market Failure: Risk Transfer to Government
  • Synthesis: Structured Risk Management
  • Relevance for Financial Institutions
  • 3.3 Political Risks Remain a Challenge
  • 4 Implications and Perspectives for Agricultural Finance
  • 4.1 Towards a Hybrid Model of Agricultural Microfinance.
  • 4.2 Innovative Insurance Instruments Need Further Study and Development
  • 4.3 Diversification to Remain a Core Element of Risk Management
  • 4.4 Improvements in Legal Framework and Financial Infrastructure
  • 4.5 The Role of Government and Donors
  • 5 Concluding Remarks
  • Appendix 1: Segmentation of Agricultural Risks
  • Appendix 2: Features of a Hybrid Model of Agricultural Microfinance
  • References
  • CHAPTER 8 The Potential of Structured Finance to Foster Agricultural Lending in Developing Countries
  • 1 Introduction
  • 2 Concept of Structured Finance
  • 3 Risk-Based Differentiation Between Agricultural and Rural Finance
  • 3.1 Investors' Channels to Finance Agriculture
  • 3.2 Agricultural Value Chain Finance
  • 4 Agricultural Risks and Risk Management Strategies
  • 4.1 Classification of Agricultural Risks
  • 4.2 Risk Management Strategies and the Role of Structured Finance
  • 5 Application of Structured Finance in Agricultural Lending
  • 5.1 Agricultural Portfolio Guarantees
  • 5.2 Are Agricultural Portfolio Guarantees an Appropriate Tool?
  • 5.3 How Innovative Agriculture-Specific Guarantees Could Look
  • 5.4 (No) Securitization in Agricultural Finance
  • 5.5 Structured Funds Investing in Rural Finance
  • 6 Finance Structures in Value Chain Finance
  • 6.1 Receivables-Backed Finance
  • 6.2 Warehouse Receipts Finance
  • 6.3 Forward Contracts, Futures and Options
  • 6.4 Contract Farming
  • 7 Summary
  • 8 Concluding Remarks
  • References
  • Websites
  • CHAPTER 9 New Approaches to Agricultural Insurance in Developing Economies
  • 1 Ex-ante Versus Ex-post Risk Management Solutions
  • 2 First Considerations When Setting Up Agricultural Insurance: System Approach Before Product Approach
  • 3 SystemAgro: Framework and Structural Aspects of Agricultural Insurance Systems
  • 4 Operational Aspects of Agricultural Insurance Systems.
  • 5 Insurance Products and the Overestimated Potential of Weather Trigger Policies.

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