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Topic Overview | id: 1030 Visits: 41759 Added:
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| |  Agricultural finance is a subset of rural finance dedicated to financing agricultural related activities such as input supply, production, distribution, wholesale, processing and marketing. Financial service providers face distinct challenges when dealing with this sector. For example, the seasonal nature of production and the dependence on biological processes and natural resources leaves producers subject to events beyond their control such as droughts, floods or diseases. Land is the most widely accepted asset for use as collateral but there are often problems with title and property rights in rural areas and small loans rarely justify the costs of legal action to call in a claim on land and then liquidate it. Moveable assets such as livestock and equipment are also fairly high risk without proof of ownership and insurance cover.
Because developing countries have large rural populations, policy-makers have frequently tried to intervene in agricultural finance with policies to provide subsidised credit through a variety of channels. Such programmes often created more problems than they solved and there was a move away from supply led credit towards a market based approach relying on commercially viable financial institutions. Governments are still tempted to control interest rates, however, and intervene in other ways, so policies relating to agricultural finance remain an important issue. | |
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| | | Title | The Ugandan Agricultural Yearbook | | Author/ Editor | Bank of Uganda, GTZ, PMA | | Content Language(s) | English | |
| Type of Document |  Book | | Abstract / Description | The Ugandan Yearbook on Agricultural Finance for 2009 has just been published. This knowledge product is the third in a series born of a collaborative effort between the Bank of Uganda, the Ministry of Agriculture's Programme for the Modernization of Agriculture and the GTZ Financial System Development Programme (FSD). The purpose of the Yearbook series is to highlight promising new initiatives used to assist in the financing of investment in agricultural value chains. As such it covers the activities of commercial banks, credit institutions, MDIs and SACCOs/MFIs.
Apart from positive examples, the Yearbook also serves to warn of problems that may be faced by investing farmers, processors and marketers of agricultural produce. Thus the 2009 Yearbook warns of products and machines that are offered on the Ugandan market, but which are either fake, or sub-standard. These range from agro-chemicals and veterinary drugs, all the way through in terms of value to four wheel tractors.
Above all, the Yearbook serves to both encourage financial institutions to support their clients' agricultural investments, and shows how best this can be done. | | Keywords | YEARBOOK; FINANCE; FINANCIAL INSTITUTIONS; AGRICULTURE; AGRICULTURAL INVESTMENT | | Country | UGANDA | | Date of Publication/Issue | 2010 | | Download | | |
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| Publisher | Bank of Uganda | | Publication Location | Uganda | | Number of Pages | 156 pp. | |
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