Innovations in rural and agricultural finance: Credit Risk Management in Financing Agriculture

Agriculture is an inherently risky economic activity. A large array of uncontrollable elements can affect output production and prices, resulting in highly variable economic returns to farm households. In developing countries, farmers also lack access to both modern instruments of risk management—su...

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Main Author: Wenner, Mark
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2010
Subjects:
Online Access:https://hdl.handle.net/10568/154567
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author Wenner, Mark
author_browse Wenner, Mark
author_facet Wenner, Mark
author_sort Wenner, Mark
collection Repository of Agricultural Research Outputs (CGSpace)
description Agriculture is an inherently risky economic activity. A large array of uncontrollable elements can affect output production and prices, resulting in highly variable economic returns to farm households. In developing countries, farmers also lack access to both modern instruments of risk management—such as agricultural insurance, futures contracts, or guarantee funds—and ex post emergency government assistance. Such farmers rely on different “traditional” coping strategies and risk-mitigation techniques, but most of these are inefficient. Formal and semiformal arrangements—such as contract farming, joint-liability lending, and value-chain integration—have arisen in recent decades, but they too are limited and can be very context sensitive. One consequence of inadequate overall financial risk management is that farmers in general face constrained access to formal finance. The smaller the net worth of the farm household, the worse the degree of exclusion.
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spelling CGSpace1545672025-11-06T04:44:58Z Innovations in rural and agricultural finance: Credit Risk Management in Financing Agriculture Wenner, Mark microfinance agriculture smallholders rural finance risk management Agriculture is an inherently risky economic activity. A large array of uncontrollable elements can affect output production and prices, resulting in highly variable economic returns to farm households. In developing countries, farmers also lack access to both modern instruments of risk management—such as agricultural insurance, futures contracts, or guarantee funds—and ex post emergency government assistance. Such farmers rely on different “traditional” coping strategies and risk-mitigation techniques, but most of these are inefficient. Formal and semiformal arrangements—such as contract farming, joint-liability lending, and value-chain integration—have arisen in recent decades, but they too are limited and can be very context sensitive. One consequence of inadequate overall financial risk management is that farmers in general face constrained access to formal finance. The smaller the net worth of the farm household, the worse the degree of exclusion. 2010 2024-10-01T14:02:19Z 2024-10-01T14:02:19Z Brief https://hdl.handle.net/10568/154567 en Open Access application/pdf International Food Policy Research Institute Wenner, Mark. 2010. Innovations in rural and agricultural finance: Credit Risk Management in Financing Agriculture. 2020 Vision Focus Brief 18(10). https://hdl.handle.net/10568/154567
spellingShingle microfinance
agriculture
smallholders
rural finance
risk management
Wenner, Mark
Innovations in rural and agricultural finance: Credit Risk Management in Financing Agriculture
title Innovations in rural and agricultural finance: Credit Risk Management in Financing Agriculture
title_full Innovations in rural and agricultural finance: Credit Risk Management in Financing Agriculture
title_fullStr Innovations in rural and agricultural finance: Credit Risk Management in Financing Agriculture
title_full_unstemmed Innovations in rural and agricultural finance: Credit Risk Management in Financing Agriculture
title_short Innovations in rural and agricultural finance: Credit Risk Management in Financing Agriculture
title_sort innovations in rural and agricultural finance credit risk management in financing agriculture
topic microfinance
agriculture
smallholders
rural finance
risk management
url https://hdl.handle.net/10568/154567
work_keys_str_mv AT wennermark innovationsinruralandagriculturalfinancecreditriskmanagementinfinancingagriculture