Financing for Agriculture: How to boost opportunities in developing countries

Financing for Agriculture: How to boost opportunities in developing countries
By Marina Ruete, Published by the International Institute for Sustainable Development (IISD), September 2015

The policy brief explores the financial needs of agriculture in developing countries and the instruments available to address these needs. It examines the challenges in financing agricultural investments, the role of different actors, and the options for governments to enhance the legal and policy environment of the financial system to support agricultural development. It argues that a successful story of agriculture finance requires a combination of good laws, a specialized financial sector, and profitable businesses of small and large farmers and companies in the agriculture sector. The government can be proactive and promote or raise awareness of laws and regulations with financial instruments. Furthermore, regulation and programs to attract financing must be realistic with the characteristics of the sector and the viability and rate of return. Finally, financial regulations must go beyond economic development and consider, among others, food security, poverty reduction, and mainstreaming marginalized groups. Available at https://www.iisd.org/publications/financing-agriculture-how-boost-opportunities-developing-countries