The IFC, the commercial arm of the World Bank Group, in partnership with the Swiss and Ukrainian governments, is rolling out a new financial instrument – crop receipts – across Ukraine to expand access to finance for small farmers, boosting agricultural productivity and supporting economic growth.
Crop receipts are a pre-harvest financial instrument, currently used successfully in a number of countries (most notably Brazil) which allows farmers to use future harvests as collateral, enabling them to purchase high-quality seeds and other essentials. In particular, crop receipts can help to address the pervasive collateral constraints in the rural economy by providing financiers …read more
Source: Emerging Europe