Finance for Food : : Towards New Agricultural and Rural Finance.

• Author: Köhn, Doris.
• TeilnehmendeR: Köhn, Doris.
• Place / Publishing House: Berlin, Heidelberg : : Springer Berlin / Heidelberg,, 2014.; {copy}2014.
• Year of Publication: 2014
• Edition: 1st ed.
• Language: English
• Physical Description: 1 online resource (293 pages)

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.