Theme 1 - Matching Supply by MFIs and the Needs of Family Agriculture
This paper explores the current nature of supply and demand for the financing of family agriculture. It then discuses the adaptation of microfinance services to meet the financing requirements of family agriculture.
The paper states that the identification of the financial service requirements for family agriculture involves understanding of:
- Producers' strategies;
- Production and management choices;
- Integrating of producers with the market.
The paper presents the methods for understanding these features:
- Farm typologies;
- Income and budget monitoring;
- Analysis of farm 'trajectories'.
The paper continues with a panorama of the available financing. It analyzes the constraints related to agricultural production and the supply of medium-term credit.
It also presents a detailed analysis of the responses proposed by microfinancial institutions (MFIs) in terms of services and organization.
The paper explains the implication for financial services for agriculture. These highlight:
- Knowledge is necessary for operating in the sector;
- High interest rate has led to an ongoing debate;
- The role of agricultural policies.
The paper highlights the procedures of financial services and conditions for accessing them. It also explores on developing and improving them. The paper highlights the procedures for:
- Short term loans;
- Medium term loans;
- Insurance.
The paper concludes with the proposals for the improvement of the financing of family agriculture.
