Subsidies as an Instrument in Agriculture Finance : A Review
This paper presents a literature review of issues related to recent subsidies and investments in the financial sector that have been designed to address the immediate effects of the crises and to develop the financial institutions necessary to mode...
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| Format: | Other Agricultural Study |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2011/06/16461413/subsidies-instrument-agricultural-finance-review http://hdl.handle.net/10986/12696 |
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okr-10986-12696 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCESS TO CREDIT ACCESS TO FINANCIAL SERVICES AGRICULTURAL BANK AGRICULTURAL BANKS AGRICULTURAL COOPERATIVES AGRICULTURAL CREDIT AGRICULTURAL DEVELOPMENT BANK AGRICULTURAL DEVELOPMENT BANKS AGRICULTURAL FINANCE AGRICULTURAL SECTOR AGRICULTURE ORGANIZATION ASYMMETRIC INFORMATION AVAILABILITY OF CREDIT BANK BRANCHES BANK DEPOSITS BANK LENDING BANKING NETWORK BANKING NETWORKS BORROWER BORROWING CAPACITY BUILDING CAPITAL MARKETS CASH FLOW CASH FLOWS CASH RESERVES COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL FARMERS COMMERCIAL LENDERS CREDIT ANALYSIS CREDIT ASSOCIATION CREDIT ASSOCIATIONS CREDIT BUREAUS CREDIT COOPERATIVES CREDIT GUARANTEE CREDIT INSTITUTION CREDIT INSTITUTIONS CREDIT LINES CREDIT MARKET CREDIT MARKET FAILURES CREDIT MARKETS CREDIT OFFICER CREDIT OFFICERS CREDIT PROGRAMS CREDIT SUBSIDIES CREDIT UNIONS CREDITOR CROP FAILURES CUSTOMER SERVICE DEBT DEBT REPAYMENT DEBTS DEMAND FOR CREDIT DEPOSIT DEPOSITOR DEVELOPMENT BANK DEVELOPMENT FINANCE DIRECTED CREDIT DONOR FUNDING ECONOMIC BARRIERS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYMENT GROWTH ENTERPRISE ASSISTANCE ENTERPRISE DEVELOPMENT EXPENDITURES EXPORT CROPS FARMER FARMERS FEMALE CLIENTS FINANCIAL ACCESS FINANCIAL DELIVERY FINANCIAL DEVELOPMENT FINANCIAL INNOVATIONS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL PRODUCTS FINANCIAL REFORMS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR POLICIES FINANCIAL SECTOR REFORM FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FLEXIBLE LOANS FORMAL CREDIT FORMAL FINANCIAL INSTITUTIONS FORMS OF COLLATERAL FUNDING SOURCES GOVERNMENT CREDIT GOVERNMENT INTERVENTION GOVERNMENT SECURITIES GREEN REVOLUTION GROUP LENDING GUARANTEE SCHEMES HIGH INTEREST RATES HOUSEHOLD FOOD SECURITY HOUSEHOLDS ID INFORMAL CREDIT INFORMAL FINANCE INFORMATION ASYMMETRIES INFORMATION SYSTEMS INSTITUTIONAL CAPACITY INSTITUTIONAL REFORMS INTEREST RATE INTEREST RATE CEILINGS INTEREST RATE RESTRICTIONS INTEREST RATES INTERNATIONAL BANK INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT VEHICLE JOINT LIABILITY LACK OF COLLATERAL LAND MARKET LENDER LENDERS LOAN LOAN CONTRACTS LOAN DEFAULT LOAN DEMAND LOAN FUNDS LOAN GUARANTEES LOAN OFFICER LOAN PAYMENTS LOAN PORTFOLIO LOAN RECOVERY LOAN REPAYMENT LOAN SIZE LOANS TO FARMER LOANS TO FARMERS LOW INTEREST RATE LOW INTEREST RATES MARKET DEVELOPMENT MARKET INFORMATION MFI MFIS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROINSURANCE MONEY TRANSFERS MONEYLENDERS MORAL HAZARD MUTUAL FUND NUTRITION OPERATING COSTS OUTREACH PAWN PAWN SHOPS POINT-OF-SALE POLICY ENVIRONMENT PRIVATE CREDIT PRIVATE INVESTMENT PROFITABILITY PROVISION OF CREDIT PROVISION OF FINANCE PUBLIC INVESTMENTS PUBLIC SUBSIDIES PUBLIC-PRIVATE PARTNERSHIPS RATES OF RETURN REINVESTMENTS REMITTANCES REPAYMENT SCHEDULES RESERVE REQUIREMENTS RISK MANAGEMENT RURAL BUSINESSES RURAL CREDIT RURAL FINANCE RURAL FINANCIAL INSTITUTIONS RURAL FINANCIAL SERVICES RURAL FINANCIAL SYSTEMS SAFETY NET SAFETY NETS SAVINGS SAVINGS ACCOUNTS SAVINGS BANKS SAVINGS GROUPS SAVINGS RATES SMALL BANK SMALL FARMER SMALL FARMERS SMALL LOANS SMALLHOLDERS SMART CARDS START-UPS SUBSIDIZATION SUPPLY CHAIN SUPPLY OF CREDIT TECHNICAL ASSISTANCE TRANSACTION COSTS URBAN AREAS VILLAGE VILLAGES VOUCHER VULNERABLE GROUPS WAREHOUSE WAREHOUSE RECEIPT WAREHOUSE RECEIPT SYSTEMS WAREHOUSE RECEIPTS WAREHOUSES WORKING CAPITAL |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO FINANCIAL SERVICES AGRICULTURAL BANK AGRICULTURAL BANKS AGRICULTURAL COOPERATIVES AGRICULTURAL CREDIT AGRICULTURAL DEVELOPMENT BANK AGRICULTURAL DEVELOPMENT BANKS AGRICULTURAL FINANCE AGRICULTURAL SECTOR AGRICULTURE ORGANIZATION ASYMMETRIC INFORMATION AVAILABILITY OF CREDIT BANK BRANCHES BANK DEPOSITS BANK LENDING BANKING NETWORK BANKING NETWORKS BORROWER BORROWING CAPACITY BUILDING CAPITAL MARKETS CASH FLOW CASH FLOWS CASH RESERVES COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL FARMERS COMMERCIAL LENDERS CREDIT ANALYSIS CREDIT ASSOCIATION CREDIT ASSOCIATIONS CREDIT BUREAUS CREDIT COOPERATIVES CREDIT GUARANTEE CREDIT INSTITUTION CREDIT INSTITUTIONS CREDIT LINES CREDIT MARKET CREDIT MARKET FAILURES CREDIT MARKETS CREDIT OFFICER CREDIT OFFICERS CREDIT PROGRAMS CREDIT SUBSIDIES CREDIT UNIONS CREDITOR CROP FAILURES CUSTOMER SERVICE DEBT DEBT REPAYMENT DEBTS DEMAND FOR CREDIT DEPOSIT DEPOSITOR DEVELOPMENT BANK DEVELOPMENT FINANCE DIRECTED CREDIT DONOR FUNDING ECONOMIC BARRIERS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYMENT GROWTH ENTERPRISE ASSISTANCE ENTERPRISE DEVELOPMENT EXPENDITURES EXPORT CROPS FARMER FARMERS FEMALE CLIENTS FINANCIAL ACCESS FINANCIAL DELIVERY FINANCIAL DEVELOPMENT FINANCIAL INNOVATIONS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL PRODUCTS FINANCIAL REFORMS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR POLICIES FINANCIAL SECTOR REFORM FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FLEXIBLE LOANS FORMAL CREDIT FORMAL FINANCIAL INSTITUTIONS FORMS OF COLLATERAL FUNDING SOURCES GOVERNMENT CREDIT GOVERNMENT INTERVENTION GOVERNMENT SECURITIES GREEN REVOLUTION GROUP LENDING GUARANTEE SCHEMES HIGH INTEREST RATES HOUSEHOLD FOOD SECURITY HOUSEHOLDS ID INFORMAL CREDIT INFORMAL FINANCE INFORMATION ASYMMETRIES INFORMATION SYSTEMS INSTITUTIONAL CAPACITY INSTITUTIONAL REFORMS INTEREST RATE INTEREST RATE CEILINGS INTEREST RATE RESTRICTIONS INTEREST RATES INTERNATIONAL BANK INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT VEHICLE JOINT LIABILITY LACK OF COLLATERAL LAND MARKET LENDER LENDERS LOAN LOAN CONTRACTS LOAN DEFAULT LOAN DEMAND LOAN FUNDS LOAN GUARANTEES LOAN OFFICER LOAN PAYMENTS LOAN PORTFOLIO LOAN RECOVERY LOAN REPAYMENT LOAN SIZE LOANS TO FARMER LOANS TO FARMERS LOW INTEREST RATE LOW INTEREST RATES MARKET DEVELOPMENT MARKET INFORMATION MFI MFIS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROINSURANCE MONEY TRANSFERS MONEYLENDERS MORAL HAZARD MUTUAL FUND NUTRITION OPERATING COSTS OUTREACH PAWN PAWN SHOPS POINT-OF-SALE POLICY ENVIRONMENT PRIVATE CREDIT PRIVATE INVESTMENT PROFITABILITY PROVISION OF CREDIT PROVISION OF FINANCE PUBLIC INVESTMENTS PUBLIC SUBSIDIES PUBLIC-PRIVATE PARTNERSHIPS RATES OF RETURN REINVESTMENTS REMITTANCES REPAYMENT SCHEDULES RESERVE REQUIREMENTS RISK MANAGEMENT RURAL BUSINESSES RURAL CREDIT RURAL FINANCE RURAL FINANCIAL INSTITUTIONS RURAL FINANCIAL SERVICES RURAL FINANCIAL SYSTEMS SAFETY NET SAFETY NETS SAVINGS SAVINGS ACCOUNTS SAVINGS BANKS SAVINGS GROUPS SAVINGS RATES SMALL BANK SMALL FARMER SMALL FARMERS SMALL LOANS SMALLHOLDERS SMART CARDS START-UPS SUBSIDIZATION SUPPLY CHAIN SUPPLY OF CREDIT TECHNICAL ASSISTANCE TRANSACTION COSTS URBAN AREAS VILLAGE VILLAGES VOUCHER VULNERABLE GROUPS WAREHOUSE WAREHOUSE RECEIPT WAREHOUSE RECEIPT SYSTEMS WAREHOUSE RECEIPTS WAREHOUSES WORKING CAPITAL Meyer, Richard L. Subsidies as an Instrument in Agriculture Finance : A Review |
| description |
This paper presents a literature review
of issues related to recent subsidies and investments in the
financial sector that have been designed to address the
immediate effects of the crises and to develop the financial
institutions necessary to modernize agriculture. Section two
of the paper discusses the impact of recent food, fuel, and
financial crises on developing countries and the emergency
actions taken by countries and international agencies to
reduce the suffering inflicted on poor people. It also
discusses the challenge of finding a balance between
pragmatic immediate responses and longer-term objectives.
The third section discusses the role of finance in
agricultural development and poverty alleviation. Section
four deals with the challenge of creating credit markets in
developing countries. The fifth section covers shifts in the
paradigm used to intervene in credit markets and summarizes
the main features of the old directed-credit and the new
financial systems paradigms. This is followed by a sixth
section that summarizes highlights in the development of the
microfinance industry. It covers guidelines created for
developing microfinance, microfinance penetration into rural
areas and agriculture, innovations and prospects for future
agricultural lending, and insights gained about the impact
of finance on poor households. The seventh section addresses
topics related to the demand for credit, including rates of
return earned in agriculture and in microenterprises, and
research results analyzing sensitivity of loan demand to
interest rates. Section eight describes major interventions
by international agencies and points the way forward for
agricultural credit. It reviews the debates about the use of
grants and subsidies, especially in the food, fertilizer,
and credit markets, and the rationale for smart subsidies.
It then describes experiences in five major areas of
international agency activities: micro-insurance and
weather-index-based insurance, credit guarantee funds,
warehouse receipts, specialized agricultural development
banks, and agricultural investment funds. Section nine
summarizes the main conclusions based on literature
consulted for this review. It identifies major lessons
learned with suggestions for priorities that Improving
Capacity Building in Rural Finance (CABFIN) members might
consider supporting in their projects and programs. |
| format |
Economic & Sector Work :: Other Agricultural Study |
| author |
Meyer, Richard L. |
| author_facet |
Meyer, Richard L. |
| author_sort |
Meyer, Richard L. |
| title |
Subsidies as an Instrument in Agriculture Finance : A Review |
| title_short |
Subsidies as an Instrument in Agriculture Finance : A Review |
| title_full |
Subsidies as an Instrument in Agriculture Finance : A Review |
| title_fullStr |
Subsidies as an Instrument in Agriculture Finance : A Review |
| title_full_unstemmed |
Subsidies as an Instrument in Agriculture Finance : A Review |
| title_sort |
subsidies as an instrument in agriculture finance : a review |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2011/06/16461413/subsidies-instrument-agricultural-finance-review http://hdl.handle.net/10986/12696 |
| _version_ |
1764421720971673600 |
| spelling |
okr-10986-126962021-04-23T14:03:05Z Subsidies as an Instrument in Agriculture Finance : A Review Meyer, Richard L. ACCESS TO CREDIT ACCESS TO FINANCIAL SERVICES AGRICULTURAL BANK AGRICULTURAL BANKS AGRICULTURAL COOPERATIVES AGRICULTURAL CREDIT AGRICULTURAL DEVELOPMENT BANK AGRICULTURAL DEVELOPMENT BANKS AGRICULTURAL FINANCE AGRICULTURAL SECTOR AGRICULTURE ORGANIZATION ASYMMETRIC INFORMATION AVAILABILITY OF CREDIT BANK BRANCHES BANK DEPOSITS BANK LENDING BANKING NETWORK BANKING NETWORKS BORROWER BORROWING CAPACITY BUILDING CAPITAL MARKETS CASH FLOW CASH FLOWS CASH RESERVES COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL FARMERS COMMERCIAL LENDERS CREDIT ANALYSIS CREDIT ASSOCIATION CREDIT ASSOCIATIONS CREDIT BUREAUS CREDIT COOPERATIVES CREDIT GUARANTEE CREDIT INSTITUTION CREDIT INSTITUTIONS CREDIT LINES CREDIT MARKET CREDIT MARKET FAILURES CREDIT MARKETS CREDIT OFFICER CREDIT OFFICERS CREDIT PROGRAMS CREDIT SUBSIDIES CREDIT UNIONS CREDITOR CROP FAILURES CUSTOMER SERVICE DEBT DEBT REPAYMENT DEBTS DEMAND FOR CREDIT DEPOSIT DEPOSITOR DEVELOPMENT BANK DEVELOPMENT FINANCE DIRECTED CREDIT DONOR FUNDING ECONOMIC BARRIERS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMPLOYMENT GROWTH ENTERPRISE ASSISTANCE ENTERPRISE DEVELOPMENT EXPENDITURES EXPORT CROPS FARMER FARMERS FEMALE CLIENTS FINANCIAL ACCESS FINANCIAL DELIVERY FINANCIAL DEVELOPMENT FINANCIAL INNOVATIONS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL PRODUCTS FINANCIAL REFORMS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR POLICIES FINANCIAL SECTOR REFORM FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SUSTAINABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FLEXIBLE LOANS FORMAL CREDIT FORMAL FINANCIAL INSTITUTIONS FORMS OF COLLATERAL FUNDING SOURCES GOVERNMENT CREDIT GOVERNMENT INTERVENTION GOVERNMENT SECURITIES GREEN REVOLUTION GROUP LENDING GUARANTEE SCHEMES HIGH INTEREST RATES HOUSEHOLD FOOD SECURITY HOUSEHOLDS ID INFORMAL CREDIT INFORMAL FINANCE INFORMATION ASYMMETRIES INFORMATION SYSTEMS INSTITUTIONAL CAPACITY INSTITUTIONAL REFORMS INTEREST RATE INTEREST RATE CEILINGS INTEREST RATE RESTRICTIONS INTEREST RATES INTERNATIONAL BANK INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT VEHICLE JOINT LIABILITY LACK OF COLLATERAL LAND MARKET LENDER LENDERS LOAN LOAN CONTRACTS LOAN DEFAULT LOAN DEMAND LOAN FUNDS LOAN GUARANTEES LOAN OFFICER LOAN PAYMENTS LOAN PORTFOLIO LOAN RECOVERY LOAN REPAYMENT LOAN SIZE LOANS TO FARMER LOANS TO FARMERS LOW INTEREST RATE LOW INTEREST RATES MARKET DEVELOPMENT MARKET INFORMATION MFI MFIS MICROCREDIT MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROINSURANCE MONEY TRANSFERS MONEYLENDERS MORAL HAZARD MUTUAL FUND NUTRITION OPERATING COSTS OUTREACH PAWN PAWN SHOPS POINT-OF-SALE POLICY ENVIRONMENT PRIVATE CREDIT PRIVATE INVESTMENT PROFITABILITY PROVISION OF CREDIT PROVISION OF FINANCE PUBLIC INVESTMENTS PUBLIC SUBSIDIES PUBLIC-PRIVATE PARTNERSHIPS RATES OF RETURN REINVESTMENTS REMITTANCES REPAYMENT SCHEDULES RESERVE REQUIREMENTS RISK MANAGEMENT RURAL BUSINESSES RURAL CREDIT RURAL FINANCE RURAL FINANCIAL INSTITUTIONS RURAL FINANCIAL SERVICES RURAL FINANCIAL SYSTEMS SAFETY NET SAFETY NETS SAVINGS SAVINGS ACCOUNTS SAVINGS BANKS SAVINGS GROUPS SAVINGS RATES SMALL BANK SMALL FARMER SMALL FARMERS SMALL LOANS SMALLHOLDERS SMART CARDS START-UPS SUBSIDIZATION SUPPLY CHAIN SUPPLY OF CREDIT TECHNICAL ASSISTANCE TRANSACTION COSTS URBAN AREAS VILLAGE VILLAGES VOUCHER VULNERABLE GROUPS WAREHOUSE WAREHOUSE RECEIPT WAREHOUSE RECEIPT SYSTEMS WAREHOUSE RECEIPTS WAREHOUSES WORKING CAPITAL This paper presents a literature review of issues related to recent subsidies and investments in the financial sector that have been designed to address the immediate effects of the crises and to develop the financial institutions necessary to modernize agriculture. Section two of the paper discusses the impact of recent food, fuel, and financial crises on developing countries and the emergency actions taken by countries and international agencies to reduce the suffering inflicted on poor people. It also discusses the challenge of finding a balance between pragmatic immediate responses and longer-term objectives. The third section discusses the role of finance in agricultural development and poverty alleviation. Section four deals with the challenge of creating credit markets in developing countries. The fifth section covers shifts in the paradigm used to intervene in credit markets and summarizes the main features of the old directed-credit and the new financial systems paradigms. This is followed by a sixth section that summarizes highlights in the development of the microfinance industry. It covers guidelines created for developing microfinance, microfinance penetration into rural areas and agriculture, innovations and prospects for future agricultural lending, and insights gained about the impact of finance on poor households. The seventh section addresses topics related to the demand for credit, including rates of return earned in agriculture and in microenterprises, and research results analyzing sensitivity of loan demand to interest rates. Section eight describes major interventions by international agencies and points the way forward for agricultural credit. It reviews the debates about the use of grants and subsidies, especially in the food, fertilizer, and credit markets, and the rationale for smart subsidies. It then describes experiences in five major areas of international agency activities: micro-insurance and weather-index-based insurance, credit guarantee funds, warehouse receipts, specialized agricultural development banks, and agricultural investment funds. Section nine summarizes the main conclusions based on literature consulted for this review. It identifies major lessons learned with suggestions for priorities that Improving Capacity Building in Rural Finance (CABFIN) members might consider supporting in their projects and programs. 2013-03-13T18:26:54Z 2013-03-13T18:26:54Z 2011 http://documents.worldbank.org/curated/en/2011/06/16461413/subsidies-instrument-agricultural-finance-review http://hdl.handle.net/10986/12696 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Other Agricultural Study Economic & Sector Work |